I lived in NY for 2 months and worked in NJ during those 2 months. I then lived and worked in GA for 10 months. My state wage amount (box 16) for NY shows my full wages?

[driveafastercar]

My state wage amount (box 16) for New York shows my full annual wages, as my company's tax person says New York State requires. In TurboTax, my income is showing about double what it should because of this. How do I fix it?

Total wages:163,187.64 (box 1)

NY: 163,187.64 (box 16)

NJ: 22,438.42 (box 16)

GA: 140,978.39 (box 16)

TurboTax is stating that I earned 340,164 combining these 3, when I'm reviewing my NJ taxes.

[AmyC · Accepted solution]

Your W2 looks like your are a full year NY resident. In that case, NY taxes everything you earn everywhere, which is creating the doubled income. You need to go back to the W2 screen and delete the NY state information.

Because NY is your resident state, it will give you a credit for the taxes paid to NJ and GA. 

Please carefully follow these directions.

You will need to prepare the states in a special order. You may need to delete both states and begin again.

1. First, prepare your non-resident NJ and GA returns. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
2. THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
3. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

[driveafastercar]

@AmyC 

I am currently a GA resident and was for March-December of 2020. I was a resident of NY only January-March in 2020.

I assume I should then follow the same steps but deleting GA on the W-2 screen? And complete NJ non-resident, then NY partial year resident first? When I look at the status of my state returns, it correctly lists me as part-year resident in both NY & GA, and also correctly as non-resident in NJ.

NY requires that you report your total wages for NY so they can tax you at the highest rate possible for the time you did live there. That’s why it looks like NY is my resident state but it is not. I have found this confirmed in earlier years in these forums. But it’s still throwing off my total wages when I get to State...

Thank you! This is incredibly helpful.

[ErnieS0 · Accepted solution]

Yes. New York requires employers to report as New York state wages total wages, whether they are NY wages or not.

Case One: You lived and worked in Georgia—and were NOT telecommuting to the NY office.

In this case, file part-year tax returns for Georgia and New York and a nonresident New Jersey return.

• GA income - $140,978.39
• NY income - $22,209.25 ($163,978.39 - $140,978.39)
• NJ income - $22,428.42 (NJ taxes some benefits that NY and GA do not.

If you file part-year returns, you would only get an other state tax credit on the NY return for tax paid to NJ.

Case Two: You continued teleworking to a NY office (and this doesn’t appear to be the case because GA tax is being withheld).

File a part-year NY return but report all your income. NY resident income will be $22,209.25. NY non-resident income will be $140,978.39. You will see separate placed in TurboTax New York to enter both.

File a nonresident NJ return as above and a part-year GA return, claiming a tax credit for NY tax.