I am a NY resident. In 2019, I worked in NY,CT,NJ. My W2 automatically imported, but it's counting my W2 wages as total wages (NJ,CT,NY) + add'l NJ&CT. How to fix?

[sjp123456]

I've heard of NY double counting income from other states, and now I'm catching it in my return. Help?

[MarilynG1]

If your W-2 imported incorrectly, you can EDIT your W-2 entry. 

For Connecticut and New Jersey, you can file a Non-Resident State Return and report only the Income Earned/Taxes Paid to that state.

You may have to pay NY but will get Refunds from CT and NJ.

Prepare your Non-Resident Returns first. 

Click this link for instructions on How to File a Non-Resident Return. 

[sjp123456]

Thank you! I don’t think my W2 imported incorrectly, but when preparing my non resident CT and NJ returns, for NJ it says the portion of my NJ earned income out of my total income - which is my base income (NY + NJ + CT) plus additional NJ & CT, which I think is incorrect. It seems like CT & NJ incomes are being counted twice. This is what I need help understanding. And I’m not receiving a refund from NJ or CT, I actually owe. I’m receiving federal and NYS tax refunds. 

[BillM223]

"I’m not receiving a refund from NJ or CT, I actually owe. I’m receiving federal and NYS tax refunds. "

The way this works is that you file your nonresident returns first (as Marilyn said above), then your NYS resident return. This allows TurboTax to calculate the tax on the income reported to CT and NJ, then carry those amounts back as a credit to your NYS taxes. See line 41 ("Resident credit") on your NY IT-201 return.

Because of this, it does not surprise me that you have a NYS refund, because the tax credits from the other states.

[sjp123456]

Thanks. I don’t think I’m explaining properly - when I prepare the CT return, the return auto-allocates wages correctly as stated on my W2. Then, when preparing my NJ return next, it allocates correct wages too, but out of the incorrect “total wages” from the W2. My total wages is combined of NY + NJ + CT wages on the W2. I am a NY resident and have earned income in CT, NJ, NY. For The CT return, it doesn’t show the total wages. But for the NJ return, it shows the total wages which is NY + NJ + CT PLUS  CT + NJ again. It is double counting NJ & CT to show that I have greater wages earned than actual. I am preparing the NJ and CT before NY (which is my resident return). I can’t imagine this is correct - my wages being overstated when preparing my NJ return. I think this will cause me to pay more in taxes than necessary. Please advise!!! 

[sjp123456]

My total taxable income is being overstated by double counting my CT and NJ income - I don’t know why! 

[DavidS127]

You aren't being double-taxed, because of the way each of these states calculate the tax due from that state.

Tax for NY residents is computed using total income from all sources, but then you get a credit for taxes paid to the other states on the same dollar of income.  You don't get taxed twice, but you do end up paying the highest tax rate among the states on that dollar.

The NJ nonresident return first calculates your total income from all sources, and then prorates that taxable income to NJ based on a ratio of gross income from NJ sources to gross income from all sources.  So, on the summary screen for your NJ taxes, you should see the "proration" of NJ taxes, such that you only pay NJ taxes for the NJ portion of your income.

The CT nonresident return is similar to NJ, in that it appears that all income in included.  But, CT uses a similar ratio to reduce the total income from all sources to the only the amount sourced in CT.

[sjp123456]

Thank you David - but why is my taxable income showing greater on the NJ return  than what’s being reported on my W2? My taxable income is X, which is comprised of A, B, C. Let’s say A is NY and B,C are CT, NJ. But when filing the NJ return, my taxable income is X + B + C. This is why I think I’m being double taxed - I don’t understand how my taxable income can be showing as higher than it actually is....

[JohnB5677]

Please check the W-2 entries.  NY should show 100% of the earned income in Box 16.  NJ should only show it's share and CT also only it's share. There should only be three entries in Bos 16.

Also verify that NY is your RESIDENT state and that NJ & CT are NON-RESIDENT.

[sjp123456]

Ok- so I live in NY and have earned income in NY, NJ, CT. First, I started with my CT Non Resident return. It shows my nonresident total, which matches the total wages in my W2, and shows the CT portion, which matches box 16 in the CT section of the W2. I am allocating income by actual dollar amount earned.

Next, I go to NJ Non Resident return. It shows my total wages as greater than they actually are. It shows NY + NJ + CT PLUS NJ & CT, again! It properly shows the NJ portion of income earned though. 

Why is it double counting NJ and CT income in my NJ state return??? How do I fix this??

[MaryK4]

You will need to go back to the New Jersey state tax return section of TurboTax.  Look for "Let's Confirm Your Taxable State Wages from _____" (see below).  You can check the boxes to exclude the NY and CT income.

@sjp123456

[sjp123456]

@MaryK4, I don’t see that option in the state section of NJ

I think the double counting has to do with my NY wages. The NYS wages are being reported as the same as my federal.

[KrisD15]

If you were a full-year resident of New York, tell the program that you earned income in other states. 

FILE NON-RESIDENT state returns for New Jersey and then Connecticut. 

When you file non-resident state returns, the program will ask how much income you earned in each state. YOU will enter that, the program will not take the amount from your W-2

Don't say that you lived in any other state, only that you earned income in another state. 

Do the New York return last. 

[sjp123456]

@MaryK4  Can you please advise based on your post how to amend NJ? I was using the online platform but just downloaded the PC desktop version, as I was advised to do so by Turbo Tax. 

thanks,

Stephanie  

[JohnB5677]

If you've filed your return and need to add additional information, then you will have to prepare an amended return in TurboTax.  You can amend an individual state without changing the federal.

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.” 

If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040X for each tax return you are amending.

Amend ONLINE    OR     Amend CD/Download       Amend 2016 - 2019

All amended returns must be mailed.  This is to guard against fraudulent tax returns.