Income from two states - one state showing total income as state income, while the other state is showing the correct portion of income for the year

[lyachin28]

I worked in NY and lived in NY for the first 8 months of the year and then worked and lived in NJ for the remainder of the year. My federal wages are $80,911. My W2 shows my NJ wages as $32,210.63 and my NY state wages as $80,911. My NY state wages are showing my total wages for the entire year rather than just the portion that I made for the first 8 months of the year. Shouldn't this be showing as about $48,547—60% of my total wages since the NJ portion is 40%? While working on my NJ tax return, it's showing my total wages as over $113,000, as though I made $80,911 in NY and $32,2210.63 in NJ rather than $80,911 total, as it should be. I'm certain I did not make over $113,000 and the federal wages would have been $113,000 if that were the case. Gross pay as written on the W2 is $86,587.04. When working on the NY state taxes, where it says to enter the percentage of this W2 income that should be included in NY state taxable income, if I input 60%, I go from a $1,296 refund to owing $94. Should I be changing the allocation here (effectively changing the state wages to $48,547) even though NY state wages is written as $80,911 on my W2, or is it written correctly on the W2, and changing it in Turbotax would result in an incorrect return?

[AmyC]

You cannot file either state return with crazy numbers.

Here are your options and then what will happen.

Option 1: Contact your employer and ask for a corrected W2 showing NY wages as the reasonable and correct amount that they were.

Then, file your return and mark that you have a corrected W2.

Option 2: Change the W2 entry screen and correct the NY wages yourself. File your correct returns.

Then, expect a nasty letter from NY where you have to prove that the NY wages were wrong on the W2, try to get a letter from your employer stating they were wrong and convince NY that these are the correct wages for NY.

Both options will work, your choice.

[lyachin28]

Thank you. Option 1 is what I'd assumed so I already e-mailed my employer requesting a corrected W2. I'm waiting to hear back from them.