I live in NJ and work in NYC, my W-2 lists duplicate income for NY and NJ (with NJ being slightly higher). When I'm filling out NJ which income do i use?

 
DanielV01
Expert Alumni

State tax filing

This is correct.  This is a reporting requirement for your employer to report for your W-2 income.  You will want to do the following:

  1. Prepare the New York nonresident return first.  Both states tax your income, but NJ will give you a credit for the tax you must pay to NY on the income earned there.  By preparing NY first, it is easier for TurboTax to calculate the credit.
  2. On the NJ resident returnyou will be asked if both of the lines on your W-2 (NY and NJ) are taxable in NJ.  They are not.  Only the NJ income is, and you will mark the NY income as not taxable in NJ.
  3. A few screens later, you will be asked about double-taxed income.  This is to calculate the credit in point 1.  You will enter the NY amount again, which is being taxed in both states.  The slightly higher portion to NJ is taxed only in NJ.  New Jersey does include some items as taxable income that are not taxable to either NY nor the IRS, as this website shows:  NJ Division of Taxation - NJ Income Tax Wages - State of New Jersey

Here is an FAQ to assist you to prepare the nonresident return:  https://ttlc.intuit.com/replies/3302052

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2012
Level 3

State tax filing

Hi Daniel or anyone who can share his or her knowledge / experience. 

I have a 99% similar case as in the original question above but with some difference. 

I also live in NJ and work in NYC, but the employer issued two (2) separate W2s: W2 for NJ completely filled while W2 for NY virtually empty.  All NY W2 has as input is (1) NY state wage and (2) NY state income tax withheld. 

Q: If this is the case, can I assume as if I received only one (1) W2 for NJ while ignoring W2 for NY, meaning I can skip any questions asking about W2 for NY? 

Q: If not, meaning if I still need to indicate the fact I have received two (2) W2s on Turbotax, should I do NJ state tax return first rather than NY state return as you suggested?

 

JotikaT2
Employee Tax Expert

State tax filing

It depends.


If I understand your question correctly, you have 2 W-2 forms but the only difference is the state section.  As such, do the W-2 forms have the same employer and employer ID numbers?

 

If so, you can file it as one W-2 Form.  On Boxes 15-17, you can simply select Add a state and then break out the New Jersey and New York amounts here.

 

You can then follow the steps outlined by Daniel above to complete your nonresident and resident state returns.

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2012
Level 3

State tax filing

Hi Jotika -

Yes, both W2s were issued by the exactly SAME employer - same employer name and ID number.  

That said, I am wondering why NY W2 is emptier considering I worked full-time in NY?  The company used to issue only one (1) W2 with NY state info included even though the situation was exactly same - live in NJ and work in NY.

As I have done in the past, can I just input NJ W2 info (as if I didn't receive NY W2) and let Turbo Tax figure out tax amount for NY later in the process, which has been the case in the past?

  

JotikaT2
Employee Tax Expert

State tax filing

It depends.

 

You should contact your employer in this situation.  It sounds like they did not complete the W-2 Form accurately if your source of income was from New York all year.

 

As New York and New Jersey do not have any state reciprocity, you would need to file returns in both states.

 

However, you can claim a credit in New Jersey for any taxes paid in New York on the same income earned.

 

 

 

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huweikun5
New Member

State tax filing

Hi guys, I ran into a similar but a slightly different situation. I also live in NJ and work in NYC. In the state section of my W-2, only NY is listed and there is no NJ. Is this a possible situation, or is it an error that my employer needs to fix? Thank you.

ErnieS0
Expert Alumni

State tax filing

This is more typical because New Jersey gives you a tax credit for tax paid to New York.

 

In cases where there are two wage amounts, it means NJ is taxing some benefits that are pre-tax to NY. In those cases, you would use the NY Box 16 state wage amount for completing your NY return and the NJ Box 16 amount on the NJ return.

 

In your case, the taxable wage for both states is the same. 

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