Hi, we moved to NJ from NY in March 2024. I just received two W2 forms from the same employer, which makes sense (two states). There is one issue I don't understand, the total combined state wages are much higher that total Federal Wages (Box1). For example if Box 1 on both W2 forms is 120,000 and the State A (NY) is also 120,000 (although actual wages for 2 months should be let's say 30,000), State B wages on second W2 form (NJ) are 90,000, the total Box 1 also 120,000. Shouldn't the total state wages equal total wages Box 1? Am I being double taxed here and how should I input this data in TurboTax? I normally use W2 import, but I'm afraid it's going to make a mess. To make things worse there was an employer change in December 2024, so I'm expecting another set of W2 forms and there is also NYC (local) tax involved.
I'm also afraid that if I showed on my NY tax return that my wages were 120,000 and I paid only tax on 30,000 NY wages, they'd go ape and tell me to pay estimated taxes and penalty.
Any help will be appreciated.
