topic I have the same issue, How do I proceed in Get your taxes done using TurboTax

Remove these wages (Work in NY live in NJ)

claysyankees12 — Sat, 01 Jun 2019 00:05:15 GMT

"Lets Confirm Your Taxable State Wages": I am supposed to check "remove these wages for NY or NJ or neither to go on to the next step and I am confused what to do. The language isn't as clear what I am supposed to check or not check if I live in NJ and work in NY, do I check a box, if so which?

Which state return were you working on when this question...

JohnH2 — Sat, 01 Jun 2019 00:05:17 GMT

Which state return were you working on when this question came up?

NJ

claysyankees12 — Sat, 01 Jun 2019 00:05:19 GMT

I have the same issue, How do I proceed

pa20297 — Sat, 01 Jun 2019 00:05:20 GMT

I have the same issue, How do I proceed

@mc_c5afd1e1-5f80 When you complete the NY return first,...

maglib — Sat, 01 Jun 2019 00:05:23 GMT

@mc_c5afd1e1-5f80
When you complete the NY return first, when you start NJ it will ask about the income and you have to click to remove the NY wages w-2. You will then get a credit for taxes paid to NY later in another section of the NJ interview.

In the federal interview for personal info section. Answe...

maglib — Sat, 01 Jun 2019 00:05:25 GMT

In the federal interview for personal info section. Answer the question did you earn wages in another state. Answer yes unless it is a reciprocal income tax state (https://ttlc.intuit.com/questions/2895760-which-states-have-reciprocal-agreements) and list the states.

In NJ  return  interview there will be a point in the interview that you have to select to remove the NY W-2 or it will double count the income..(note removing the NJ can also be done but will lead to a lot of adjustments for after tax in NJ items that are pretax for other states and the fed) that are so check to remove the NY wages (you always remove the state you don't reside in wages unless your w-2 didn't report income to your resident state). Box 15 on your w-2 should have 2 lines with the same employee state id number. and box 16 and 17 will differ for each state but you should only enter the w-2 in once....
NJ number will be higher as NJ taxes healthcare benefits.  NY number normally matches federal number.
Because NY and NJ reporting are different amounts TT is just wanting to be clear that it wasn't 2 separate activities.

Make sure you finish your non-resident state return prior to starting your residence or the credit for taxes paid to other states calculation will be problematic. Dont forget that income for dividend, interest, cap gains, should be removed from the NY column when doing the NY return as those income items are only resident state (exceptions may be for stock options earned income may be allocated to work state).During the NJ interview you will get a credit for taxes paid to NY in a separate part of the interview, do note the income taxed by NY and NJ are calculated differently and the tax rates are not the same so you will not get a full credit). States tax you at the rate as if all income was earned there and then credit you for the actual earned there/total income so you pay a higher rate but only on the % of income earned there.

In the NY interview, you are a non-resident and it starts with Federal income...  it should not pick up the NJ amounts.

I am not a TT employee.Was this helpful?

removed

zakir-hussain — Sat, 01 Jun 2019 00:05:27 GMT

removed

You live in NJ and get taxed on NJ on all income and NJ i...

maglib — Sat, 01 Jun 2019 00:05:29 GMT

You live in NJ and get taxed on NJ on all income and NJ is a different calculation than NY as NJ does NOT allow certain deductions that NY does. You will get a credit for taxes paid to NY which is a separate part of the interview.... You must first complete your NY return and only then complete NJ. NJ taxes healthcare benefits. (TT will work if you remove NJ too but then you will have to input all the income taxable to NJ that isn't taxed to NY such as Healthcare, vs if you remove NY wages in the NJ prep, it will already be done, saving you time).

This is confusing...some folks say uncheck NY and others...

josednolasco — Sat, 01 Jun 2019 00:05:31 GMT

This is confusing...some folks say uncheck NY and others say uncheck NJ...wonder if TT has an opinion on this

In NJ, you don't get deductions that Fed and NY allow. T...

maglib — Sat, 01 Jun 2019 00:05:32 GMT

In NJ, you don't get deductions that Fed and NY allow. The income for NJ will always be the larger number, you remove the NY wages. You then get credit for taxes paid to other states, which TT does automatically and it will be the wages from the IT NY forms adjusted, a completely different number. If in NJ you remove the wrong wages, you will have to adjust the NJ income and add back all the deductions not allowed in NJ such as healthcare, vs. if you remove the NY during the NJ interview, you will save that step and know you started with the correct income.

Note this is only for the same w-2.... NJ taxes health c...

maglib — Sat, 01 Jun 2019 00:05:34 GMT

Note this is only for the same w-2.... NJ taxes health care, NY doesn't so if in NJ resident return, you remove NJ, you will underreport your NJ wages and the NJ state will send you an invoice, normally 3 years later...or you would have to make sure you answered the interview and add back the those deductions adding another step.

Most states start with Federal income and adjust deductio...

maglib — Sat, 01 Jun 2019 00:05:35 GMT

Most states start with Federal income and adjust deductions....

Re: In the federal interview for personal info section. Answe...

Midge121 — Sat, 07 Mar 2020 01:15:51 GMT

So, when doing the NY non resident return and it asks if all income was from NY, should you answer yes since TT is only pulling in the NY w2? If I put no, it asks me how I can up with the allocation when the company sent me 2 w2 forms. One NJ income and one NY income.

Re: In the federal interview for personal info section. Answe...

KrisD15 — Sat, 07 Mar 2020 14:55:47 GMT

Answer "Yes"but make sure only that income amount is showing on the final New York state return.

Re: In the federal interview for personal info section. Answe...

Midge121 — Sat, 07 Mar 2020 16:00:08 GMT

If all income from both states show at the summary page of the NY return, do I then go back and enter that only some income was made in NY? If I do that, it then only shows what was originally entered on the W2 that stated NY income. It then asks me to allocate how much was made in NY. When I say 100%, if then asks how I came up with that allocation. What do I put?

if I go that route, it gives Me a penalty and says I owe thousands on the summary page. WTF? Why is NY taxing me on everything I made in both states?

Re: In the federal interview for personal info section. Answe...

RobertG — Sat, 07 Mar 2020 19:39:28 GMT

If you live in NJ and work in NY you will be filing a non resident NY and a resident NJ return.

Do the NY first. You will get a credit for taxes paid to NY on the NJ return.

Re: In the federal interview for personal info section. Answe...

Midge121 — Sun, 08 Mar 2020 00:39:24 GMT

That’s what I’m trying to do but ny is taking all of the salary made for the year and taxing me. There are 3 W2’s. One is my wives works in Nj) and the other 2 are for the company I work for. One was the income I made in Nj for them and the other is the income made in NY. They already split it. When I put that only some income was made in ny, it shows the w2 that has ny income. Then asks how I came up with the allocation. I say employer put on separate w2. Then at the summary, it shows that it’s taking all of my income for my wife and myself for both states and taxing me on it. Why? I thought I should only get taxed on ny income. How do I even fix this?ive never had an issue with this before. I’ve once worked in ny for a few weeks and didn’t have the problems with turbo tax then like I am now.

Re: In the federal interview for personal info section. Answe...

DaveF1006 — Tue, 10 Mar 2020 00:58:56 GMT

It may appear that NYS is taxing you on all your income but in reality, it isn't.

The way that the NY state tax return works is that NY looks at all of your income from all sources and generates a NY state tax on all this income. However, when NY is determining the actual NY state taxes owed, NY multiples the total NY taxes on all income by the percentage of NY source income over all source income. If you look at the actual tax form, you can see what I mean,

Re: In the federal interview for personal info section. Answe...

maglib — Tue, 14 Jul 2020 03:45:47 GMT

@Midge121 in NY interview you will answer all was from NY and you will not have to do any allocations.