NY and NJ employment

[foleydm57]

I live in NJ and work in NJ. For 3 weeks of 2020 my employer had my work location as NY even though I was in NJ. My W2 shows $148K of income with only 326 of withholdings. My legal/payroll department advised that it is a NY law to report yearly earnings and use my last pay stub to record the income associated with the NY withholding. How do I do that when filing NY state return. Do I allocate the income reported on the W2?

[DavidD66]

Can you clarify.  Did you actually work or live in New York during 2020?

[foleydm57]

Lived in NJ all year. Worked for same company 3 weeks in NY and 49 in NJ

[DavidD66]

As a New Jersey resident 100% of your income is taxable by them.  The income you earned in New York is also taxable by New York.  As you go through the New York state return, you will be asked if all your wages were earned in New York - Answer No. Next you will be asked if you have New York State Wages, answer Yes.  Next you will come to a screen where you allocate the amount of your income attributable to New York.  There you will enter only the amount you earned in New York.  New Jersey will give you a credit for tax paid to other states, so that you won't be subject to double taxation.  You should prepare your New York Non-Resident return first.

[foleydm57]

Thank you for your help. One more question. When I arrive at the ALLOCATE NY WAGES screen. There are 4 option.   1- 100% NY income

                2- Allocate by number of days

                3- Allocate by %

                4- Don't allocate this employer

There is no option to enter a specific dollar amount. Should I choose allocate by percentage?

Thanks 

[DMarkM1]

In your situation it looks like the easier math might be "number of days"  (15 work days in NY).  TurboTax will do the math.

[foleydm57]

The problem is she worked for the same employer for the entire year. 15 days in NY and remainder in NJ. if I put 15 days in for NY I am not permitted to enter a number higher than 15 when asked how days worked outside of NY or at home, I must put a number less than 15 which causes me to owe $8K in taxes which is incorrect. the wages applicable to NY were $5K out of $148K

[DMarkM1]

The choose "Allocate by days".  On the next screen you will enter the non-working days to subtract from the 366 days in the year.  The follow on screen for the box "days outside of NY" enter the workdays you were in NJ.  I assume approximately 260 workdays.  Any days you put in the second box will be NY days so put 15 there.