I have 1 job W2 with salary and tax paid for both NJ and NY - deepening on the % of days i worked in each state. but turbo tax is asking which one is duplicative - what ?

[davide-mancini88]

Turbo tax is asking Check "Remove These Wages" for each state wage line that is a duplicate. • NY wages (Box 16): $272,865 • NJ wages (Box 16): $55,937 my federal is Federal wages (Box 1): $272,865

[KrisD15]

If your Federal wages show as 272,865 that is your total wages. 

If your NY wage is 272,865 then that is the same as your total wages. 

Now you are also reporting 55,937 as NJ wages, that makes the state total 55,937 more than the federal. That does not seem like it is split by percentages that equal 100%. 

It sounds like 55,937 is DUPLICATED since it is reported as NY wages and also as a part of your NJ wages. 

I ASSUME you would file a non-resident New Jersey return claiming the 55,937 and then a resident NY return claiming 272,865. You should then get a credit for the tax you pay New Jersey on your New York return, however your question does not explain which state you are a resident. 

More information about your situation may ne needed. 

[davide-mancini88]

Thanks - I am a NY state and city residents and a NJ non resident. My employer is in NJ but I work more often from the NY office for meeting and business reasons. 

[DianeW777]

New York (NY) does not have a reciprocal agreement with any state. Therefore you must file all wages to NY as a resident, then New Jersey (NJ) for the income earned while you physically worked in NJ. You can leave the NY wage entry, reduced by the NJ amount, enter the appropriate withholding for each state. As a resident NY should tax all of the wages and NJ only the amount indicated.

In the end the only requirement is that the NY and NJ wages are correct on the tax return.

State Returns - Your resident state requires you to include all worldwide income. Assume both states require income tax returns to be filed: 

1. Report the income on each state return that is from the nonresident state
2. Report it on your resident state and receive credit for taxes paid to another state.

Credit for taxes paid to another state is allowed by a resident state when the same income is being taxed to another state.  Your resident state does not want you to pay tax twice on the same income. The credit that is allowed will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

In most cases complete your nonresident state first, then TurboTax will know the amount of credit for your resident state return. 

@davide-mancini88 

[davide-mancini88]

Thanks but not sure which amount should I include in the nj: NY wages: $272,865 • NJ wages (Box 16): $55,937 my federal is Federal wages (Box 1): $272,865

[DianeW777]

The full amount of your wage is taxable to New York (NY).  The W-2 entry is necessary for both returns to be correct and remove the error. 

• NYS - box 16 - $216,928 // NJ - box 16 - $55,937 | To remove the error.

Check your returns when you finish the entry and the state returns by using the steps below before you file. You will be able to see the actual page one of both state returns, as well as the federal. By selecting you are a NYS resident, all income should go to that state return.

From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.)

1. Select Tax Tools
2. On the drop-down select Tools
3. On the pop-up menu titled “Tools Center”, select View Tax Summary 
4. On the left sidebar, select Preview my 1040 

For TurboTax Desktop, change to 'Forms' and review the forms 

Please update here if you need additional help.

@davide-mancini88 

[davide-mancini88]

thanks so much for your help. 

So I did the following things: 

• Prepared first a NJ non resident and a NY resident. 
• When prepared the NJ, I am asked to ''Check "Remove These Wages" for each state wage line that is a duplicate''. I see NY 272,865 and NJ 55,937 for box 16 - this is based on box 16 of W2 with federal at 272,865. I have selected to remove the 55,937.
• I then asked if I earned some of the $272,865 in another state. I said Yes and I have allocated this amount based on the days of work outside NJ. 

Finally when I checked the 1040 for NJ - I see that the taxable wage is not reported as  $272,865

Am i ok now?

D 

[RogerD1]

You will need to make a correction to your NJ return, which will affect your NY return.  In TurboTax online:

1. Go to State Taxes, then under that, click Your State Returns
2. Click the trash can to the right of New York, then click Delete on the pop-up to delete the NY return
3. Click Edit for your NJ Non-resident return.
4. Click Continue, which will take you to a page "You've Finished Your New Jersey Return"
5. Click on Start to the right of Adjustments, then Continu on the next page.
6. You'll want to remove the NY wages by checking the box under Remove These Wages.
7. The box for NJ under Remove These Wages should not be checked.
8. Click Yes, I earned all $xx,xxx in New Jersey, then click Continue
9. Click through and answer the questions taking care that non-wage income is not allocated to NJ
10. You'll get back to the "You've Finished Your New Jersey Return" page - click Done with new Jersey
11. Go through the state review, then click Your State Returns on the left
12. Click +Add another state and click on New York and run through your New York return again.

New York will be taxing all your wages (and non-wage income), but will automatically apply a credit for the taxes you paid to NJ.

[davide-mancini88]

Thanks. This is great but should I not indicate which days I work and where (nj office versus ny office)? 

[RogerD1]

No, you don't need to be concerned about allocating days to each state.  Assuming your W-2 is properly allocated, that will be all that is needed to determine your tax liability to each state.  Nj will only tax the income attributed to that state, while NY will tax all of you income, but give you credit for the tax liability that you have for NJ.  

[davide-mancini88]

And this is the tricky part. How do I know that my employer calculate that correctly. I am not sure 

[MindyB]

The most reliable way for you to check their math is to look at your own calendar and count the actual days you physically worked in each state. New York is famously strict about this and it is your responsibility to ensure you report the accurate allocation of time.