How do I know if I was doubly taxed? Am I eligible for work credit in NJ?

[warriorkarma]

I moved from New York to New Jersey in May 2019 but my job didn't change.

I checked my W2 that my state wages (box 16 on W2) for new york are my wages for the full year and my state wages for new jersey only account for about half of my wages. However, my state income tax (box 17 on W2) only has values for New York while it's empty for New Jersey.

I have completed my NY return and I am getting a refund from New York, however, I did pay taxes to New York.

Am I eligible for the work credit given this information? If yes, is the amount that was doubly taxed the amount I earned as a resident of New Jersey (state wages/box 16 on W2) and the tax paid to new york the amount I eventually owed New York (State + local taxes on W2 - refund)?

[DavidS127]

If your job was in New York, you file as a part-year resident of New York, but pay NY state taxes on the entire amount of your 2019 income.  While you were living in NY, the income was taxable in NY as both "NY resident and NY source".  While you were living in NJ, the income was taxable in NY as "NY source".

For NJ, you file a part-year resident return, but pay NJ taxes only the income earned while you lived in NJ.  You will get a credit on your NJ return for the portion of your income taxed by both NY and NJ, i.e., earned while you lived in NJ.  That way, you don't pay state tax twice on the same dollar of income.

[warriorkarma]

Thanks, that helps!

Unfortunately, In my case the boxes for doubly taxed amount and tax paid to other jurisdiction did not auto populate.

To fill the doubly taxed amount, I used the NJ state reference copy of my W2 and filled the amount doubly taxed as the number in box 18  (state wages, tips etc).

I divided NJ State income (the number above) by my income for 2019 to arrive at the portion of the wages that were doubly taxed and multiplied this number by the total state taxes paid to NY state (excluding taxes paid to NYC) to arrive at the amount to arrive at the amount of tax paid to the other jurisdiction box.

Does this sound right?