If I work in 3 states, I live in one of them. When I get to the percentages do I put the % from that state or the percentage of the total amount.$32,900 CT vs $20k in NJ?

[lucasbiehler7-gm]

I also worked in NY. So my wife says $32,900 for both CT and NY and only $20k for NJ. So when it is at state wages do I remove all of them except NJ when I do NJ, then when I do NY I put in that percentage worked and same for CT? 

[DMarkM1]

Let's assume you live in CT and worked in NY and NJ.  Your W2 state wages boxes 16-20 will reflect CT taxing everything in box 1 and NY everything in box 1 and NJ only the NJ part of box 1.  Enter/verify the entries in TurboTax "Wages & Income" using the "Job(W2)" topic.

Work your non-resident states first.  In NJ you will be asked to "Remove" wages in lines that don't apply.  You will check the boxes for NY and CT leaving only the NJ wage amounts.  You will not need to allocate anymore since the NJ line on your W2 has already done the work.  At the end take note of the income taxed and the income tax for NJ.  Those numbers will be used to figure your credit for taxes paid to another state on your CT resident return.

Next, work NY non-resident.  In that interview since NY uses all the wages earned, you will need to allocate by whatever means you find reasonable in your situation.  It could be by number of days or by percentage of pay for example.  If you use the percentage method you could subtract the NJ income from the box 1 amount and then divide that by the NY box 16 amount to arrive at the percentage to put in the NY allocation box.  Continue the interview only allocating what belongs to NY.  At the end take note of the income taxed and the income tax for NY.  Those numbers will be used to figure your credit for taxes paid to another state on your CT resident return.

Now work your CT resident return.  Your resident state taxes all income from all sources, however, be sure to go through the credit for taxes paid to another state to verify/enter any necessary figures from the non-resident returns to mitigate the double taxation on income earned in the non-resident states.

[lucasbiehler7-gm]

how do I get the allocations for NY to show, it will not give me %, it just goes to finish. 2.credit for taxes paid i.e do I add the 266 and 395 for "credit" from NJ for CT? 3. For NY, when I take my whole amount minus NJ (32,000-20,039) =12,861, that is the % i want to allocate for BOTH CT and NY. So can I divide that 12,861 by work percentage between NY and CT like 50/50 or 60/40

[lucasbiehler7-gm]

[AmyC]

1. NY  gives several choices for how to allocate the income. You can use days or percentage in your case. I prefer percentage of dollars over figuring out days. So if you made $16000 in NY out of $32,000 total, that would be half or 50% of the income to NY. Look at your numbers and determine how much of it was earned in NY.

2. No, only the tax liability is used to calculate credit. CT will use the $266 to determine NJ credit.

3. Yes, take out the NJ wages and allocate the remainder between NY and CT based on whatever records you have. You may have a calendar or dates worked. Your employer may have records. Whatever you can substantiate.

Once you determine NY wages and tax liability, then you can fill out your resident CT return.