Firm moved from New York to New Jersey

[d4london]

My firm moved from NY to NJ in 2020. I understand that NY requires box 16 on the W-2 to contain the full year income to be reported to the FED and you reconcile only the earned NY income on form 203.

for New jersey, my firm reported one box 16 to NJ with the correct income only earned in NJ on my W-2, however they also file an additional reference and filing copy to NJ with box 16 containing the earned income that was reported to New York. I lived in New Jersey the entire year. 

Does New Jersey only report income earned while the firm resided in New Jersey on the W-2

or did my firm correctly report both incomes to NJ , one with income earned that year and one with income earned in NY ? 

thank you 

[ErnieS0]

You firm did report wages correctly from their point of view. Once they moved to New Jersey they became a NJ company and you are a NJ resident, so they would begin to report NJ wages and withholding.

This creates a tricky situation for you because of the way TurboTax is set up. TurboTax allows you to remove duplicate state wages. But your wages are not complete duplicates.

Remove NJ wages from the NJ section and add any difference as an adjustment. For example, if NY shows $100,000 and your company moved mid-year, $50,000 would be a duplicate wage. Suppose NJ reported $52,000 for that period. You would keep $100,000 as your total wage and add $2,000 as an adjustment.

You would still get a tax credit for the wages earned while the company was in NY and you paid NY tax.

[d4london]

Just to confirm:

you earn 100k, with 50k earned in NY and 50k earned in NJ, with the firm moving midyear from NY to NJ.

New York:

1.  W-2 box 16 for NY will report 100k and reconcile the 50k earned on form 203

New Jersey will require two separate reporting:

1. Box 16 containing 50k ( earned in NJ) 

2. Box 16 containing 50k (earned in NY) , that you would remove from wages earned in NJ on tax form. 

Thanks and appreciate your help 

[DMarkM1]

First concept to understand is that NJ is going tax all your income from all sources as your resident state.  You will claim a tax credit on your NJ return for the income taxed by the NY company. 

If your wages in box 1 are 100K you will have a NY state line (boxes 15-17) that reflects the full amount of box 1 wages in box 16.   Then you will have one NJ state line (boxes 15-17) that will also have the total box 1 wages in box 16 and shows the total withholding for NJ from all employer forms.   

Next complete your NY non-resident return where you will allocate the 50% of wages to NY.

Then complete your NJ resident return and you will arrive at a page where you select the NY wages as duplicate.

After that you will arrive at a page to verify the credit for taxes paid to NY which will auto-populate based on your NY return info.