Lived in 4 months in NYC, moved to New Jersey for rest of year but worked the whole year in NYC. How do you handle residency, duplicate wages and double-tax?

[locorecto]

Let's assume 

Here are the facts 

• Assuming my income was 90K in 2018
• I worked in NYC the whole 2018
• I lived in NYC for the first 4 months of the year and made 30K during that period based on my W2
• I live in NJ for the next 8 months of the year and made 60k during that period based on my W2
• I selected Part-Year Resident on NYS Resident Status with 30K income allocation
• I selected Part-Year Resident on NYC Resident Status with 30K income allocation

The confusion comes when completing my NJ taxes.

It first asks me to remove duplicate wages. Which one should I remove?

1. NJ 60,000

2. NY 90,000

It then asks me to work Credit for Taxes Paid to Another State. I enter New York City as the jurisdiction where I worked.  Now it asks me to enter the "Double-Taxed Income" and the "Tax paid to New York City"

I don't know what to enter here. Can someone help me?  

[DanielV01 · Accepted solution]

Remove the NY income as duplicate wages.  For your NJ part-year return, you only pay tax on the income you earned while living in New Jersey.  You remove the NY wage amount so that NJ tax is calculated against NJ income.

Your double-taxed income is also the same $60,000.  New York City should not have been taxing that portion of income, but only the portion on the $30,000 you earned while living in New York City (NYC only taxes income earned in NYC by residents of NYC).  The amount of tax paid to New York City on your New Jersey income is $0.  (Even if your employer mistakenly withheld NYC tax after your move, the mistaken tax will be "refunded", or at least calculated into the NY state return so that, in effect, you do get any mistaken amounts refunded.  But the actual NYC tax on your NJ income is $0).

I really liked your example.  You broke it down well.

[locorecto]

Thanks for the answer. You are awesome. I also used your answer here <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/4352734-i-work-in-nyc-but-moved-to-nj-on-03-01-17-how-do-i-calcula...>
to fill the "Double-Taxed Income" and the "Tax paid to New York" fields. Thanks again.