Live in NJ but work in NY

[koheitung]

Hi,

I live in New Jersey for the full year and I work in New York for the full year. On my W2, it shows both NY and NJ wages and taxes. 

NY State Wage is the same as my Federal Wage however, NJ State Wages is only ~70% of my Federal Wage. Do you know what would that happen? How would this impact the way I file tax for both states? 

[Vanessa A]

You would need to contact your employer to see why they did this.  It is very likely an error that they will need to correct as NJ, as your home state, would tax all your income. 

 When it comes to living in NJ and working in NY, you would report your full income to both states.  You would file your NY non-resident return first and then take a credit for taxes paid to NY on your NJ resident return. 

[TomD8]

See "If you live in New Jersey and work in New York" in this TurboTax help topic:

How do I remove income doubling due to multi-state amounts in box 16 of my W-2? (intuit.com)