Check "Remove These Wages" for each state wage line that is a duplicate. Live in NJ, work in NY. Do I remove the NY line?

Yes.  Because of state programming requirements, TurboTax includes both income lines as part of the NJ income, which doubles the amount of income that is taxable to NJ.  The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on the NY box so that those reported wages are not included on New Jersey's return.

I am in the same situation (I work in NY and live in NJ). However, the W2 shows both lines as NY. Note that one of the amounts has "State Income Tax" in box 17 and the other one doesn't.

You don't need the NY line twice, delete one. Be sure to prepare the NY return first since it is non-resident, then do NJ.

@kessafi

regarding the question live in NJ and work in NY, what about if it's vice versa, live in NY and work in NJ, which state wage do I have to take out of the state taxable. Should I take out NJ as I only work there and live in NY.

Thank you. Which one do I delete. They have different amounts (one has tax paid next to it and the other one doesn’t).

Do they have the same dollar amount? It is possible there was an error on your W-2 from your employer if it had the same state in boxes 15-17. You should check with them prior to deleting any information from your return.

Income is taxed in the state where earned. But, the income will also likely be taxed in your resident state. In the case of NY/NJ. If you work in NY and live in NJ, you must complete a nonresident return for the state of NY, and a resident return for the state of NJ. You should complete the nonresident return first so you can receive credit for taxes paid to other states on your resident return. If the opposite is true, you live in NY and work in NJ, the same rules apply. NY will tax your income as a resident, and NJ will tax income earned in its state.

NY and NJ do not have a state reciprocal agreement. A state reciprocal agreement can allow you to withhold only for your home state. You must have a form on file with your employer. 

​State Reciprocal Agreement​​​

The solution sounds simple but I do not get that screen asking me to confirm my New Jersey taxable wages. What do I do now?

You should be seeing where to enter NJ income in NJ return.

@rfritz48

• On a part year return, NJ asks how much of your wages was earned in NJ. Enter the correct amount.
• The non-resident NJ asks Did you earn all of your wages in New Jersey? Select NO and a drop down box appears and asks how much was earned in NJ.

The response was, "

You should be seeing where to enter NJ income in NJ return.

On a part year return, NJ asks how much of your wages was earned in NJ. Enter the correct amount. The non-resident NJ asks Did you earn all of your wages in New Jersey? Select NO and a drop down box appears and asks how much was earned in NJ."

The problem is I am not getting the question whether I earned all of my wages in New Jersey or the appropriate drop down box. The program is taking me straight to the bottom line, saying I owe a large amount. When checking the recap, I see that my earnings are almost double actual earnings. I've determined that the reason is that my New York taxable income is being added to my New Jersey taxable income. How do I correct this when the question and drop down box  are not appearing?

Ohhhhh! Follow these steps. You have something stuck somewhere that should not be.

Please do these things:

1. Delete the state and all forms with it:
   1. Open or continue your return in TurboTax.
   2. In the left menu, select Tax Tools
   3. then select  Tools.
   4. In the pop-up window named Tool Center,
   5. choose Delete a form.
   6. Select Delete next to the form/schedule/worksheet in the list and follow the instructions.
2. Log out of your return.
3. Try one or more of the following:
   • Don't use Internet Explorer.
   • Clear cookies and cache, instructions on the links.
     • Google Chrome
     • Microsoft Internet Explorer
     • Safari
   • Sign in using a different browser.
   • Sign in using a different device.
4. Log back into your return.
5. Enter the form again.

If there is still something wrong, you may want to contact a specialist that can work through that section of the return with you.

@rfritz48

Thanks. I was able to open up the form in the tools section and make the correction directly to the form. I then had to close down the program and reopen it.  I had previously tried this to no avail, but this time upon reentering the Turbo tax program, all of the messages and boxes you mentioned appeared and the problem has been resolved.

Glad you got it resolved!  Sometimes things get 'stuck' and the only way to resolve it is to exit the program and re-open it.  

Do I check this box if I only worked in NJ? 

@Sraia15 If you lived and worked in New Jersey, there will be no duplicate wage box to check. Your NJ wage amount should be the same as Box 16 state wages on your W-2. And your W-2 should only have a NJ row.

I live and work in the NJ and received the message to confirm my wage by checking the remove this wage box. I didn't have to answer this question last year. 

My wife works from home in NJ put is paid by her employer in PA. Should we check the box to remove that wage also?

No.  All income is taxed to New Jersey (NJ) and no other state tax return should be filed unless there is state withholding for Pennsylvania (PA). All income earned is taxable to NJ.

If there should be PA withholding then a return is filed as reciprocal and all withholding should be refunded from PA. There should be no income taxable to PA because of the reciprocal agreement between them.

My W2 employer address is in CA, but I worked and live in NJ. I'm getting the same message: Typically, New Jersey wages should be higher than federal wages because New Jersey does not allow the same federal deductions. On my W2, Box 1 and Box 16 have the same amount. Do I remove the wages, that the message is saying is duplicate? Or do I need to add up Box 1 and Box 14, then enter that total as State wages? I do have two W2s as well.

@nmchicon5  Actually instead removing the duplicate, please follow the steps outlined in this Turbo Tax post written by esteemed tax expert DanielV01. In his post he outlines the following steps.

1. "Prepare the New York nonresident return first.  Both states tax your income, but NJ will give you a credit for the tax you must pay to NY on the income earned there.  By preparing NY first, it is easier for TurboTax to calculate the credit.
2. On the NJ resident return, you will be asked if both of the lines on your W-2 (NY and NJ) are taxable in NJ.  They are not.  Only the NJ income is, and you will mark the NY income as not taxable in NJ.
3. A few screens later, you will be asked about double-taxed income.  This is to calculate the credit in point   You will enter the NY amount again, which is being taxed in both states.  The slightly higher portion to NJ is taxed only in NJ.  New Jersey does include some items as taxable income that are not taxable to either NY nor the IRS, as this website shows:  NJ Division of Taxation - NJ Income Tax Wages - State of New Jersey "

 

Thanks Dave, but how does that work when I dont work or live in NY? My taxes are only for NJ.

@nmchicon  In your case box 16 is the same as box 1 because you didn't have any extra deductions.  

Box 16 should have the same as box 1 and the only state listed should be New Jersey.  If the same wages are listed as California wages on your W2 then you will have to file a California non-resident return.  In order to make sure TurboTax stops seeing the entries as duplicates then add a penny to one of them.

Thank you Robert, so my California employer W2 is only NJ taxes (so Box 15) is NJ. Do I still file a Cali non resident form? My other W2 employer is located in NJ and taxes are in NJ, it did have the same message "remove these wages" as it's a duplicate. 

I live in NJ but work in NY.  I completed my taxes but the box never came up to Confirm taxable state wages.   At this point, I would delete NY to avoid double tax.

What did I do wrong?

"I live in NJ but work in NY." - TurboTax will handle this - you won't be double-taxed.

Generally, you owe tax to the state where you live and to the state(s) where you work.

In this case, you will owe tax to NYS because you work there.

You will enter data for NYS first as the nonresident state. Then you will enter data for NJ, your home state.

On the NYS return, tax will be calculated and your withholding for NYS will be netted against it, so you may or may not owe NYS.

But when you do your NJ return, even if it appears that NJ is taxing the same income, there is on line 43 of the NJ-1040 "Credit For Income Taxes Paid to Other Jurisdictions", i.e., the amount you paid NYS is used as a credit in NJ.

This is how many states avoid double taxation, by giving you a credit in one state for taxes you paid in another state on the same income.

i did not  entered my new jersey income twice in federal but when i go to do my new jersey state tax the income is double. Why? How do i fix that? I lived in DC and worked in New Jersey.