Nj/NY taxes on Turbo tax

[spectre527]

I live in NY State and worked in NJ for 2 months last year. They witheld taxes for both states which is expected.  When I do my taxes on Turbo tax, I input that W2 and the taxes came up correclty for both states.  When I now add my other W2s (for work solely in NY State) TurboTax changes the amount tue for NJ. It has gone from positive to negative.  How do I correct this?

[TeresaM]

You will want to be sure the second Form W-2 has state wages listed for New York.

When dealing with more than one state, it is best to finish the federal portion, then do the Non-Resident state, New Jersey, then the Resident state, New York. 

If this is in the TurboTax Online version, when state returns have had changes, sometimes it is best to delete them and get a fresh import from the completed Federal Return. 

1. First, please check My Info in the Federal return and be sure the box is checked for Made money in another state
2. Then go to the States section and click on the delete trashcan icon for both New Jersey and New York
3. Then, add New Jersey first, and be sure it is a Non-Resident state and complete it
4. Next, add New York and be sure it is a Resident State
    

• This should prompt the allocation of income in both New Jersey and New York. Both returns will ask what part of the federal income is sourced in that state, so you can divide the income.
• Then, New York, your resident state, will ask you to enter your taxes paid in New Jersey to give you credit, so you are not double taxed on the same income. 
  
   

[spectre527]

Thanks Teresa, but this is Turbo Tax Premier, not online.  Is there a similar step in that product that you laid out?

[AmyC]

The download version is paid so you will not be able to delete and start fresh. You will need to :

1. Revisit the personal info section and be sure made money in another state is checked.
2. Input all of your federal income and complete the federal review. 
3. Then go to NJ and go through the income screens again so that you can allocate income properly.
4. Once NJ is complete, move to NY which will tax all income and give you a credit for the double taxed NJ amount.

Because you are on the desktop version, you can switch to Forms mode and see how the numbers are flowing. 

• You can look for red exclamation marks which show something is missing. 
• You can also find numbers that are incorrect and right click to data source to the origin of the issue. 
• All corrections should be made in step-by-step so as to not void the accuracy guarantee.