rjs
Level 15
Level 15

State tax filing

@petetuit @SteamTrain  I have both the NJ and NY TurboTax software, and some experience with two-state filing, so I will try to work through the details of your scenario and see how the various amounts flow between the two states. It will take a while. I'll try to get back to you by tonight. But there are a couple of things I can tell you right off the bat.


The New Jersey instructions are very clear that you have to file both a NJ part-year resident return and a NJ part-year nonresident return. The TurboTax software will prepare both NJ returns in one file. You do not have to mess around with multiple copies of your tax return.


Your W-2 should not have a NJ line at all. If box 17 (state tax) on the NJ line is blank or zero, just omit the NJ line entirely when you enter the W-2 in TurboTax. This is a common error by employers. I suspect that the NJ Division of Taxation is used to seeing it, so they probably won't give you any trouble about your tax return not matching your W-2. If they question it, you will just have to explain that you worked in New York all year, and none of it is New Jersey income. This also means that it doesn't matter whether your employer got the right date for your move.


Do not change the box 16 amount for NY, as Hal_Al suggested in the other thread. New York has an unusual rule that box 16 must be equal to box 1. (Hal_Al's alternative suggestion was to leave the NY line as-is and omit the NJ line, which is what you should do.)


None of your W-2 income is "attributable to NJ." There is no "NJ portion" of your W-2 income. It's all NY-source income. I'm not sure whether you will have to apportion it between the nonresident and resident periods for either state. I'll look into that later.


Please do not post any more separate questions about your two-state situation. It's already confusing enough with relevant information in two separate threads. If you have any more questions or additional information, continue adding replies to this thread. Do not post another new question about the same situation.