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?

[justadude]

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?

[DianeW777]

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.

[nmchicon5]

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.

[DaveF1006]

@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 "

 

[nmchicon5]

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

[RobertB4444]

@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.

[nmchicon5]

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. 

[valjing]

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?

[BillM223]

"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.

[lishamid3]

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.

[ZoltanB45]

In doing the state allocation, you probably entered it again, when it already flowed from the federal return. Go through the steps within the jersey input screens and look to see if you manually entered an amount in one of the boxes.

[plente]

I have a strange situation regarding this part of the Turbo Tax return. When reviewing the State tax information (we live in New Jersey), Turbo Tax brings up the review screen where you can click "Remove this income" and shows my wife's income listed as a single line. She works and lives in New Jersey (as opposed to what appears to be the normal reason this would appear, when someone lives in NJ and works in NY for example) so I am not sure why this appears. If I click the "Remove this income" box and click Continue, our State refund goes up by many thousands of dollars which makes me suspicious. Turbo Tax is not (and has never) prompted for this same information relating to my W2 (I also live and work in NJ). Any insight in to why this may be occurring?

[BillM223]

You both live and work in New Jersey? Do either of you work in other states as well? Are you filing a part-year or nonresident return in New Jersey or elsewhere? Do you have another state on your W-2 other than New Jersey?

[plente]

Yes, we both live and work in New Jersey. Neither of us have any type of employment outside of this state. We do not own a property outside of New Jersey, and each have only a single W2. We do not file anywhere other than New Jersey.

[BillM223]

Are you using an Online product or a CD/download product? If you are using the CD/download product, you can go into Forms mode (upper right) and see your New Jersey state tax forms. This will help you determine what is changing before and after you delete that state income.

If you are using the Online product, then you can see the state summary. Get into the interview for New Jersey, then on the left, click on Tax Tools, then below that click on Tools, then in the center, click on View Tax Summary.

I figure that you ought to have a general idea of what your gross income or taxable income should be - what do you see before and after you remove that income item?