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New Member

Live in NY, work in Jersey

In Taxable State wages, I have two State IDs with different amounts. All together I didn't make this much money. Do I remove one of them. I am so confused.
5 Replies
Employee Tax Expert

Live in NY, work in Jersey

Correct.  You will enter the information on your W-2 into TurboTax just as it appears on your W-2, or you will likely get efile diagnostic errors that will create other issues.  However, you will need to make an adjustment on your NJ return.

New Jersey programming requires that all of the state amounts be added together.  However, they should not be added together, because the income is being double-reported to each state.  You are able to correct this, however.  You will see two screens.  The first will ask about your W-2 state wages, and the second will allow you to exclude the NY amounts from your NJ return.  I am providing screenshots at the end of this answer to assist you.

In addition, NJ does tax some income that both the Federal and New York returns do not.  Please see this NJ website with more information:  NJ Division of Taxation - NJ Income Tax Wages - State of New Jersey

This being the case, you will prepare the NJ return first.  Since NY also taxes this income, you will get a credit for the tax you paid to NJ on that same income.

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Returning Member

Live in NY, work in Jersey

I don't see the screen shots for this answer and I am having issues making sure I am doing this correctly because it is still doubling my income. 

Employee Tax Expert

Live in NY, work in Jersey

When you first enter your W-2, it might show the same income below both states, but that just means that the income will be taxed by those states. Look at your 1040, line 1. The income should not show as doubled there. 

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Returning Member

Live in NY, work in Jersey

Intuit turbo tax prompt "Credit for Tax Paid to New Jersey - you have no credit for taxes paid for New Jersey"

I'm wondering why

Level 15

Live in NY, work in Jersey

NY wages and NJ wages are separate items because the states have different rules. You don't add them together and then complain your income was doubled.

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