Remove the New York wages from the New Jersey section of TurboTax. New Jersey will tax the NJ amount reported on W-2 Box 16.
NJ gives a credit for tax paid to NY, but the credit is based on NY wages. TurboTax will bring in the numbers in the other state tax credit section if you did NY first.
New Jersey wages are higher than New York wages because NJ taxes some benefits that are pre-tax deductions for federal and New York.
- New Jersey does not allow you to exclude from wages amounts you contribute to deferred compensation and retirement plans, other than 401(k) Plans.
- New Jersey does not allow you to deduct moving expenses or employee business expenses from wages, although you can exclude reimbursements for certain expenses if they are included in wages on your W-2.
- If you are considered a “statutory employee” for federal tax purposes, you cannot deduct your business expenses unless you are self-employed or an independent contractor under New Jersey law. The federal label of “statutory employee” has no meaning for New Jersey tax purposes.
NJ Income Tax – Wages
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
