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Level 3
posted Nov 20, 2024 11:54:08 AM

How to input W-2 with NY and NJ, as a NJ resident

I worked partly in NY (as a non-resident) and NJ for my same company, and I live in NJ (resident). My W-2 shows NY and NJ state wages in box 16 as follows (numbers simplified): NY $100; NJ $60. Box 1 wages shows $100 (same as the NY state wages amount). When I put in my W-2 information into Turbotax, should I put it in exactly as it shows in my W-2 with NY/NJ as $100/$60? Or should I change the NY to be $40 (since the NY amount is $40 out of the total $100 wages, and $60 belongs to NJ)? Thanks!

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1 Best answer
Employee Tax Expert
Nov 20, 2024 3:04:46 PM

You should enter your W-2 on the federal screens as it shows on your W-2. 

 

Then, complete your New York nonresident return first. On the New York Income Allocation screens, you will specify how much of your income was earned in NYS. Please make sure you follow the instructions as follows to get to the correct screens:

  1. Open your NYS return.
  2. On the screen New York Income Allocation, select no for the question about earning all of your wages in New York State.
  3. Answer yes to the question, Did you have any New York State Wages?
  4. Enter the wage information.
  5. Enter your allocation method for your wages. If you entered the "$40" amount in Step 4, you can allocate it as 100% New York State Income. 
  6. Your New York return should show just your allocated NYS wages under the NYS amount column as shown in the example picture attached.

Once you complete your New York return, you can do your resident return. Although New Jersey will tax you on all of your income, they will give you a credit of taxes paid to New York. Please see How can I calculate the other state tax credit as a New Jersey resident who works in New York? for more information. 

1 Replies
Employee Tax Expert
Nov 20, 2024 3:04:46 PM

You should enter your W-2 on the federal screens as it shows on your W-2. 

 

Then, complete your New York nonresident return first. On the New York Income Allocation screens, you will specify how much of your income was earned in NYS. Please make sure you follow the instructions as follows to get to the correct screens:

  1. Open your NYS return.
  2. On the screen New York Income Allocation, select no for the question about earning all of your wages in New York State.
  3. Answer yes to the question, Did you have any New York State Wages?
  4. Enter the wage information.
  5. Enter your allocation method for your wages. If you entered the "$40" amount in Step 4, you can allocate it as 100% New York State Income. 
  6. Your New York return should show just your allocated NYS wages under the NYS amount column as shown in the example picture attached.

Once you complete your New York return, you can do your resident return. Although New Jersey will tax you on all of your income, they will give you a credit of taxes paid to New York. Please see How can I calculate the other state tax credit as a New Jersey resident who works in New York? for more information.