I lived and worked in NJ only. But my w2 contains NJ & NY. And it seems I was double taxed. Do I need to purchase New York state return (I have a deluxe version and NJ is included)?

[zzz2]

Hello,

I lived and worked in NJ only.

But for some my employer gave me two w2 forms, one with NJ wages & paid taxes and one with NY wages and taxes. Seems I was double taxed.

When I was working on my NJ taxes in Turbotax I selected that I was double taxed in New York and entered the NY wages and taxes from my NY w2 part, and Turbotax shows I'll get credit from New Jersey.

Turbotax did not ask or force me to buy and fill New York.

My question is: Do I need to buy NY state in Turbotax if I didn't really live or work there and it seems it's just a mistake by my employer?

[KrisD15]

The credit for taxes paid to another state doesn't really work that way.

You would need to do the non-resident state return FIRST, then any tax liability to that state would trigger a credit for the resident state. 

Since you don't really owe New York any tax, New Jersey would not like the idea they they are giving you a credit for something you shouldn't be paying. 

Depending on the program you are using, if using Online you might be able to do the New York return, print and mail it, (so not charged) then do the New Jersey return and e-file that. 

[zzz2]

Hi Kris,

>Since you don't really owe New York any tax, New Jersey would not like the idea they they are giving you a credit for something you shouldn't be paying. 

Just to make sure we're on the same page. I don't owe New York any tax, but according to my W2 my employer sent taxes to NY.

Does this change anything? Or I still have to purchase an additional state?

[KrisD15]

What I mean is this:

You don't owe New York ANYTHING because you do not live there and you do not work there. 

Your employer mistakenly withheld and paid tax to New York from your pay, lets say $500.

You are telling New Jersey that you paid New York $500 and New Jersey gives you a credit for that.

But you should not get a credit for paying New York $500 because you should not have paid New York ANYTHING and you would get that $500 refunded if you filed for New York. 

So, New Jersey would say, "Hey, why should we give you a credit for $500 when you should get that back and give it to us!!"