inputting State Wages - Live in NJ but work in NY

[Waverly1949]

Hello,

My Wife lives in NJ but works in NY State.  She received a W2 from each state.  The NY W2 is the only one that includes a balance in line 17 for State income tax.  However, both NY and NJ W2's both include a balance for line 16 State wages.  The residing NJ line 16 wages are larger than the work state NY line 16 wages.  When filling out Turbo Tax, which state and which amount should the inputted?  Is the correct number the larger NJ amount, where we reside?  The state selected for line 16 (even if it's the same value) seems to make a big difference in the result.

Thank You,

[MaryK4]

New York New York requires employers to use the Box 1 amount from the W2, even if the income is not all taxable to New York.  Some employers have started to include NY Wages in Box 14 so that you know the amount that is taxable in New York, or if she worked in New York all year it is the NY amount.  

Complete the New York nonresident return first because you will use the amount taxed in New York to determine the New Jersey credit for taxes paid to another state.