For context, I lived in NYC for 10 months and then moved to NJ while continuing to work in NYC for 2 months. I've already set up a part-time resident return for both NY and NJ, but I'm a bit confused about how to handle the double-taxed income that comes from the period of time in which I was a NJ resident but working in NYC and this results in two main questions:
- On the "Tell us about your New Jersey income" part of the interview for the NJ state return, the total income on W-2 shown is a lot higher than my reported federal wages. I can see that the number comes from the total wages worksheet as a sum of state wages. For example, if my reported federal wage is $120,000, then my NY wage is also $120,000 while my NJ wage is $20,000 because I only lived 2/12 months in NJ. In this hypothetical example, the total wages worksheet would calculate my total income as $140,000. In reading how the process works for a full-time NJ resident that works in NYC, it seems like there's an option to exclude the duplicate state wages that I don't seem to get in the interview as a part-time NJ resident. Is it fine to leave it as-is? Or is this a bug and I need to go into the total wages worksheet and exclude my NJ wages to make the total income more realistic?
- On the "Tell us about the money you earned in New York" part of the interview for the NJ state return, it asks for the "double-taxed income while a resident of New Jersey" and I don't know which amount to put. I can either put the NY non-resident portion of the income (A) or the NJ reported income (B). They're close, but A + FSA contributions while living in NJ = B.
