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lyachin28
Level 1

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

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?

2 Replies
AmyC
Expert Alumni

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

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.

 

 

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lyachin28
Level 1

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

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.

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