I have two w-2 and one of them is another state. if I only made 3000 on one do I have to file them?

[miok966]

I have two w-2 and one of them is another state. if I only made 3000 on one do I have to file them?

[MinhT1]

Yes. The law requires that you report all income.

You have to enter both forms W-2 on your tax return. After entering the first W-2 in the Wages section, click on Add another W-2 and enter the second.

[miok966]

Thanks. I added my second w2 to federal using Add another W-2 under personal income. 

now, do I need to file a second state tax return for that W2 from another state? 

 It doesn't look right to include that $3k income on my resident state tax return because it earned in another nonresident state. 

[DawnC · Accepted solution]

Did you do the work in another state?   Or did you do the job in your resident state (the employer is located out of state)?   If you physically went to another state and did work in that state, then you need to file a nonresident tax return for the state you did the work in.   Your resident state taxes all of your income but will usually give you credit for any tax paid to another state.   That link has instructions if you need to file a nonresident return.  

But if you did the work in your resident state, you do not need to file a nonresident return.   What matters is where you did the work, not where your employer is located.  

W-2 for an out-of-state employer.   

[miok966]

Yes, I was physically working in that state for sometimes, so I just prepared a nonresident state tax return for the $3k that I earned in 2022 for that state.   However, this $3k is still showing up on my resident state tax return.  it looks like I am being double tax for that $3k.  Is there a way to separate/remove the nonresident state income from the resident state income under turbotax?  (version: home and business )

[MaryK4]

On your resident state return, you will get a credit for taxes paid to another state.  Look for it on the credits page if TurboTax does not ask you.  If you cannot find the entry, post which state and I will add screen shots tot guide you.  @miok966 

[miok966]

Yes. I do see the credit for taxes paid to another state on my resident state return. (under form: Tax/Credit Wks)

My question was why is the income I earned from nonresident state is showing up on my resident state return? ( under form: NY ST Wgs/SE Wk)

[ErnieS0]

New York residents are taxed on income earned everywhere. It's the same for any other state.

That's why you can claim a credit on double-taxed income.

Everything is taxed, but the credit is subtracted from your tax liability. New York's tax rate is generally higher. Most people don't get 100% credit because NY only gives you credit for the tax you actually paid to the other state, not the NY tax rate.