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hxhx
Level 1

NJ resident, interned with a NYC firm while at home in NJ, unable to allocate 0 to NY sources

Hi all,

 

I am an NJ resident, and over this past summer I completed a virtual internship with a firm in NYC. This virtual format was (I don't think) not out of convenience but because I was forced to do so given the COVID-19 situation. With that said, my W2 form from the NYC firm shows my wages being attributed to NY. However, this article here (https://ttlc.intuit.com/community/state-taxes/help/do-i-need-to-file-a-nonresident-return-for-an-out...) suggests I allocate 0 income to NY because I was an NJ resident. 

When I do that, TurboTax says "New York wages were reported on federal Form W-2 but no wage income has been allocated to New York. This will cause the efiled return to be rejected by New York state."

 

I did some searching on this forum, but I am still confused:

1) Given my situation (resident of NJ, worked for a firm in NY but did so virtually given the pandemic), should I allocate all my wage income to NJ and 0 to NY?

2) If so, must I file my return via mail, given that TurboTax does not allow me to efile?

 

Thank you!

1 Best answer

Accepted Solutions
rjs
Level 15
Level 15

NJ resident, interned with a NYC firm while at home in NJ, unable to allocate 0 to NY sources

The TurboTax article that you found is general in nature, and doesn't discuss the specific rules for New York, New Jersey, and the Covid-19 pandemic.


New York considers your wages to be New York wages. Because of the Covid-19 pandemic, New Jersey will accept New York's position that the wages are New York wages, even though you actually worked in New Jersey. So you should allocate all of the wages from the New York firm to New York, as shown on the W-2.


Since you are a New Jersey resident, you still have to also file a New Jersey resident tax return in addition to your New York nonresident tax return. You will get a credit on your New Jersey return for part or all of the tax that you pay to New York. Prepare your New York nonresident tax return first, then your New Jersey resident tax return.


When you allocate all your wages to New York you should be able to e-file your federal, New York, and New Jersey returns.

 

View solution in original post

2 Replies
rjs
Level 15
Level 15

NJ resident, interned with a NYC firm while at home in NJ, unable to allocate 0 to NY sources

The TurboTax article that you found is general in nature, and doesn't discuss the specific rules for New York, New Jersey, and the Covid-19 pandemic.


New York considers your wages to be New York wages. Because of the Covid-19 pandemic, New Jersey will accept New York's position that the wages are New York wages, even though you actually worked in New Jersey. So you should allocate all of the wages from the New York firm to New York, as shown on the W-2.


Since you are a New Jersey resident, you still have to also file a New Jersey resident tax return in addition to your New York nonresident tax return. You will get a credit on your New Jersey return for part or all of the tax that you pay to New York. Prepare your New York nonresident tax return first, then your New Jersey resident tax return.


When you allocate all your wages to New York you should be able to e-file your federal, New York, and New Jersey returns.

 

View solution in original post

hxhx
Level 1

NJ resident, interned with a NYC firm while at home in NJ, unable to allocate 0 to NY sources

Wow, thank you for the explanation! 

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