My employer sent me two W2s one for NJ and another one for NY. I am confused as to how I should file my taxes?

[akritibahal]

My employer sent me two W2s one for NJ and another one for NY. In my NJ W2, my state wages are reported as $7,060. In my NY W2, my state wages are reported as $7000. However, I only earned $1000 in NY and $6000 in NJ in the whole of 2016. I am confused as to how I should file my taxes?

[ChristinaS]

Where did you live- NJ?

[ChristinaS]

If you didn't live in NJ all year, please clarify where you lived (as that's pretty important too)

[ChristinaS]

I will have to assume that you live in NJ, though you did not specify...

As a resident on NJ, you are taxed on the total income plus NJ adjustments. NJ wages are nearly always higher than NY or federal wages, so this part makes sense.

On top of this, NY employers are required by law to list 100% of federal wages on the W2. It is the employee's responsibility to allocate the appropriate wages on his/her tax return.

So, your W2 seems "NJ/NY-normal". Here's what you need to do:

1. Enter the W2 in Turbo Tax. Add NJ wages of $7060. Add a row for state and list NY wages as $7000. The W2 is all inputted on one screen.
2. Work on the NY tax return first. In the NY interview, you will allocate wages that truly belong to NY. You do not do this on the W2 entry itself. This needs to be done in the NY interview, so proper tax forms are completed. (see link pasted below)
3. After NY, work on the NJ return. In the NJ return, you will be asked to remove the duplicate wages. You will remove the $7000 NY wages.

This process will report the proper amount of income on your NJ return- which is $7060. As an NJ resident, you are taxed on your income from anywhere. And you will get a credit for the taxes paid to NY. The NY return will ultimately show close to $1000 in income after you've done the allocation.

https://ttlc.intuit.com/questions/3548849-not-sure-how-much-to-enter-for-my-new-york-state-income-wa...