NY and NJ State Tax Question

[mjackson123]

I lived in NJ for the full year 2025. 

• I worked onsite for my company located in NJ for 4 months of the year
• My company relocated to NY for the final 8 months of the year.  I worked onsite in NY for 8 months. 
• My W-2 box 16 has 2 amounts - one for NJ (10K) and one for NY (60K).  Note box 1 matches the NY amount of $60K
• I entered the full amount in my NY return (60K) then allocated the 8/12  based on the percentage allocation. 
• Then on my NJ return I just reported the NJ amount from Box 16 by removing the NY allocation line.
• Is this correct?

[RogerD1]

It looks like this is mostly correct.  Here are the steps you should take:

• You should have filled out the information on your nonresident New York return first.  If you didn't, go back to Your State Returns on the left side menu in TurboTax Online, delete the NJ return, then go through the NY nonresident return.  Make sure that none of any of your other income items are being allocated to New York.
• The allocation of you wage income of 8 months to New York would be correct.
• Once your New York return is finished, go back and add the New Jersey return.
• When you get to screen in New Jersey that states "Let's Confirm Your Taxable State Wages from [employer]", you will want to remove the New Jersey wages as they are a duplicate amount and not the New York wages.

I realize this may seem to be incorrect, however, states will typically tax all your income regardless of where it was earned, then give a credit if you pay taxes to another state on that income.  Since your New York wages in box 16 equal your box 1 wages, then the wages in box 16 for New Jersey will need to be removed as they are duplicating the amount for New York.

Assuming that you will work in New York all of next year and still live in New Jersey all year, you will still be filing returns from both states.