@TomD8It's a little bit complicated. She's been working remotely for years, also in 2024. She worked from March remotely from NJ home for employer with the HQ in Texas, but according to their payroll and HR department her main office was in NYC. After pressing them about the issue, since the company also has an office in NJ and she works remotely and never goes to the NYC office, they changed her office address from NYC to NJ in June and they stopped withdrawing NY taxes, but not 100%. They continued to withdraw her NY SDI and NY PFL for another few months, after we complained they stopped. From June 2024 they started withdrawing only NJ payroll taxes. Now, she received two W2 forms from her employer. One for NJ and one for NY, as I said the NJ W2 form shows properly total state wages (lower that federal), but NY form wages match her total federal wages. Her NYC local wages properly show wages for two months as it should. I also own a NY S corporation, but I know that I have to file nonresident IT-203 because I conduct my business in NYC exclusively. My main goal it to properly file state taxes, especially NY, since this is the last year we'd have to deal with multi residency.
Questions:
1. As @AmyC mentioned I'd have to manually input her W2 forms in TurboTax.
If I understand correctly, I could combine both W2 forms together and manually adjust state wages (same employer Fed. tax ID number). So, NJ wages would match actual NJ state wages on W2 forms, but NY wages should be changed. Also, correctly me if I'm wrong please, those NJ and NY state wages combined have to match federal wages on box 1.
2. Since they stopped withdrawing her local NYC taxes in the last week of February 2024, can I use that total NYC wage amount (listed on her W2 as local wages) also as NY state wages? It would make sense since the end of February was our last day of residency in NY state.
3. Since I'm obligated to pay taxes for my NY S corp in New York, how do I take credit for taxes paid to NY on my NJ return to avoid double taxation? I'm talking about NY payroll withholding taxes and federal pass trough taxes reported on NY IT-203 part year resident and Federal 1040. Those taxes were reported and paid on NY and Federal returns, I don't think I should pay them also in New Jersey, since it was taxed by NY and the IRS already. Does NJ have same tax allocation worksheet like NY? Please advise.
Thank you for your help!
