Solved: I live in NJ and work in NY. MY W-2 has an amount in Box 17, which state do I apply that amount to, NY or NJ?
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I live in NJ and work in NY. MY W-2 has an amount in Box 17, which state do I apply that amount to, NY or NJ?

I am trying to complete my taxes and needed guidance. I live in NJ and work in NY. I received my W2 and there are amounts in Box 15 & 16 one is for NY and the other for NJ. My W2 shows an amount of Box 17, which state do I apply this amount to, NY or NJ? Or is the amount applied to both states? 

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Employee Tax Expert

I live in NJ and work in NY. MY W-2 has an amount in Box 17, which state do I apply that amount to, NY or NJ?

New York.  What you should be seeing is that the amount in Box 17 is on the New York line.  On the W2 screen in TurboTax, you will first enter the NY information in boxes 15-17 (not 18-20, although this should be blank), click on the box Add Another State, and then repeat the procedure with the information from the New Jersey line (NJ).  Proceed with preparing the Federal Return until you complete that portion.

For the state returns, prepare the New York return first.  New York is your nonresident state, and New Jersey will allow you to claim a credit for tax you pay to New York on the income you earn there.  Prepare the New York return first so that the credit carries over to the New Jersey return correctly.

Then, when preparing the New Jersey return, the following procedure will eliminate income that may have been doubled-up because of programming.  On the NJ return, you will see a screen titled About Your W-2 State Wage Information.  Because of state programming requirements, TurboTax includes both income lines as part of the NJ income.  The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on the NY box so that those reported wages are not included on New Jersey's return.

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Employee Tax Expert

I live in NJ and work in NY. MY W-2 has an amount in Box 17, which state do I apply that amount to, NY or NJ?

New York.  What you should be seeing is that the amount in Box 17 is on the New York line.  On the W2 screen in TurboTax, you will first enter the NY information in boxes 15-17 (not 18-20, although this should be blank), click on the box Add Another State, and then repeat the procedure with the information from the New Jersey line (NJ).  Proceed with preparing the Federal Return until you complete that portion.

For the state returns, prepare the New York return first.  New York is your nonresident state, and New Jersey will allow you to claim a credit for tax you pay to New York on the income you earn there.  Prepare the New York return first so that the credit carries over to the New Jersey return correctly.

Then, when preparing the New Jersey return, the following procedure will eliminate income that may have been doubled-up because of programming.  On the NJ return, you will see a screen titled About Your W-2 State Wage Information.  Because of state programming requirements, TurboTax includes both income lines as part of the NJ income.  The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on the NY box so that those reported wages are not included on New Jersey's return.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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