My NJ Taxable Income is higher than what I earned

[harrissadiq1]

Hi ,

I worked in  Westchester, NY last year and lived in NJ. I earned about ~65k in NY but my NJ taxable income shows that I earned about ~120K. Whereas my federal tax return shows taxable income of 65K.

Did i do something wrong? or that's how this is supposed to be because I have two W2's and they both have slightly different Income . It looks like the final ~120k amount is the sum of these two income

[DanielV01 · Accepted solution]

There is an adjustment to make on your NJ return.  When two states are listed on the W2, and one is NJ, the programming requirements for NJ doubles-up the income.  However, you can remove the double-added income by doing the following:  

On the NJ return, you will see a screen titled About Your W-2 State Wage Information. The next screen is titled Let's Confirm Your Taxable State Wages from (Employer).  Click on the NY box so that those reported wages are not included on New Jersey's return.  Your income will be reduced to the appropriate income amount, and the credit for taxes paid to NY probably reduces your NJ tax down to zero or near zero.

[Heimmi]

This box does not seem to be there. I am having the same problem of double counting income. Any advice?

[MaryK4]

I would suggest reviewing the New Jersey income section once more, you may have missed it.

@Heimmi

[Divideby7]

The NJ return is including my NY wages too. How do i adjust it. The NJ wages being reported is more than Federal now. That shouldnt be the case. What am i doing incorrectlt

[JosephF8]

When you open your return select Go Over NJ Again. Once you do and start going through you will see the screens as @DanielV01 suggests above. NJ taxable income reported on the W-2 will run a little higher than the Federal box 1 as retirement contributions are not excluded from NJ income.