I live in CT and work in NY. I earned all my income in NY but I see income tax for CT on W2. How do I file the CT income tax in Turbo tax even though I didn't earn in CT?

[rjs]

Since you live in Connecticut you must file a CT resident tax return, no matter where you earn your income. As a CT resident, all your income is subject to CT tax, no matter where the income is from. You must also file a NY nonresident tax return and pay NY tax on the income that you earned in NY. Income that you earn for working in NY is subject to NY tax, even though you don't live in NY. You will get a credit on your CT tax return for part or all of the tax that you pay to NY.

At the beginning of the TurboTax interview, when you enter your personal information, it asks you what state you live in. You will indicate CT. Then it asks whether you had income from any other state. Answer Yes and select NY as the other state. When you get to the State section, after finishing your federal tax return, it will prompt you to prepare tax returns for both states. Prepare your NY nonresident tax return first, then your CT resident tax return.

[ednarh42]

Thanks! I follow all that. I just don't get the option to input income on my CT state tax section. Also found out that NY tax rates went down so that's why I have CT Income Tax in box 15 of the CT W-2. I haven't had that in the past so I am a bit confused.

[rjs]

Just enter the information as it appears on your W-2. You will have two lines of state information (boxes 15 - 17), one for NY and one for CT.

If you got two separate W-2s, one for each state, enter them as if they were one W-2 with two lines of state information. See the following FAQ.

How do I handle multiple W-2s from the same employer?

When you finish your CT tax return, before you file it, check to make sure that it shows the correct total wages, and not double what you actually earned.