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New Member
posted Mar 16, 2025 8:16:57 PM

Clarification on NY Taxable Income in W-2 for 2024

 

I need clarification regarding the NY state wages reported in my W-2 for 2024.

 

For the first 5.5 months (01/01/2024 – 05/17/2024), I resided in Plano, Texas, where no state taxes were applied to my overall wages, Since Texas not having any State Taxes and same reflected in my pay slips.

 

From 05/18/2024 – 12/31/2024, I moved NJ State and worked for a client in NY while residing in NJ, during which state taxes were applicable to my wages and same my employer deducted taxes for the same.

 

In W2, It appears that my total wages earned during the first 5.5 months in Texas have also been included in the NY State wages and in BOX 16 of NY State W2 for 2024.

 

As per my understanding, NY State wages should only reflect the income earned during the 7.5 months I worked for the NY client, 

 

Since overall income of 2024 is reflecting in W2 of NY state, its expecting me to pay $2000 to NY State, which is not correct income for NY state. Like to know , how to address and file taxes for the scenario ?

 

I appreciate your assistance and look forward to your response.

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3 Replies
Employee Tax Expert
Mar 18, 2025 2:25:50 PM

NYS law mandates that Box 16 of Form W-2 match Box 1 on the W-2, even if all the wages were not earned in New York*. The allocation of income occurs on the IT-203. Please enter your W-2 as it shows on your form. 

 

In your situation, you should follow the instructions here on filing your nonresident NY return. You would go through your NY screens first to allocate your income and then complete your NJ return. NJ will also tax you on the income, but you will get a credit of taxes paid on your return so you aren't double taxed. 

 

*Per NYS (link attached - pg 2), If at any time during the tax year a nonresident employee performs services in New York State (for example, two days a week, every other week, every other month, one month a year, etc.), the amount of wages that must be reported in the State wages, tips, etc. box on federal Form W-2 is the same amount of federal wages required to be reported in box 1, Wages, tips, other compensation.

New Member
Mar 18, 2025 3:22:11 PM

For the first 5.5 months (01/01/2024 – 05/17/2024), I lived in Plano, Texas, where no state income tax was applied to my wages, as Texas does not impose a state income tax. This is also reflected in my pay slips. Do I need to pay state taxes on the income earned during this period, even though no state tax was applicable?

Expert Alumni
Mar 18, 2025 3:52:55 PM

Your nonresident NY return requires you to allocate the correct NY income. The first 5.5 months are not taxable to NY or NJ. Follow these steps:

  1. Go through your NY return
  2. Select NY wage allocations
  3. Select Edit
  4. Allocate by days or percentage. Percentage seems easiest for you. 6.5 months in NY is  about 54%.
  5. Enter your actual percentage of NY income
  6. Select done