New york state income allocation: NJ Resident | FT NY Work

Forum|Forum|1 year ago
March 9, 2025
2 replies
18 views

Hi,

So I've reached this part of my NY state return: New York Income Allocation. It shows my full federal wages under the "Federal Wage Income" and then a field titled "New York Source Portion".

I reside in NJ, however all my wages are earned in NY. I've read elsewhere online I do not need to allocate to NY as all of my income is NY income. Does that mean under the "New York Source Portion", I enter "0" or the same value under "Federal Wage Income" (ie: if under "Federal Wage Income" it states 100k, I enter 100k)?

Thank you in advance!

Tax Advice

LenaH

Employee Tax Expert

If all of your income was NY sourced income, you would enter $100,000 (using your example) under the NY Source Potion. This is the amount derived from New York Sources. If this was not NY sourced income, that is when you would enter $0. However, since you worked the full year in NY, please enter the full amount under the NY source portion.

Your wages will also be taxed in New Jersey, however, you will get a credit of taxes paid to New York. To read more about this, please see Credit for Taxes Paid to Other Jurisdictions. As per the State of NJ, The credit reduces your New Jersey Income Tax liability so that you don't pay taxes twice on the same income. This is not a refund of the taxes you paid to another state or city. Your credit cannot be more than the amount you would have paid if you earned the income in New Jersey.

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dansole26

Level 2

Did you by chance also receive a 2nd w2 from the same employer with New Jersey wages (even though all your wages were derived from NY) , which was probably greater than your federal wages amount?

If so, the following link will explain how to handle it. The steps are listed on the last response by Christina S

https://ttlc.intuit.com/community/state-taxes/discussion/my-employer-sent-me-two-w2s-one-for-nj-and-another-one-for-ny-i-am-confused-as-to-how-i-should-file/00/391648