Employer withholds only living state tax and wrongly record working state

[Nimood2021]

Do I need an employer’s verification letter to prove my work location was in NY in 2020 during the filing?  Or will the self-explanation suffice?

[Hal_Al]

You do not need a letter from your employer and you do not need to attach an explanation letter.  Yours is a fairly common situation.

[Nimood2021]

The W-2 only shows NJ wages and withholding.  There is no entries for NY, such as NY wages.  Is this W-2 usable?  

I assume it should not make any difference for the federal return.  For states, there should be state wage for NJ and NY, I guess, even NY’s withholding is zero.  I can only assume the state wages are the same since that is my only job.  I have tried to get a new one from payroll, it has been very difficult since the working location record was incorrect (not my fault).  And W-2 was generated from a wrong record, which made it “right”.  

[Hal_Al]

I'm not familiar with he NY software.  Allocation of ages to the state is usually done one of two ways:

- You will reach allocation screens in the state section of TT to allocate other types of income. Some states wages are included.

If wages aren't at the allocation screen, try this:

At the w-2 screen split the boxes 15-20 W-2 info into 2 lines. On the 1st line leave NJ in box 15 but make box 16 only the amount allocable to NJ; leave the NJ withholding in box 17. On the 2nd line put NY  in box 15 and the NY wages amount in box 16; leave box 17 blank..

[Nimood2021]

Thanks. I am still trying to get payroll to add NY’s State ID, NY’s state wages, and NY’s state tax withholding 0 dollar in a new W-2. If I failed, I will try your suggestions.

[Nimood2021]

I have been trying to ask HR and payroll to add NY wages information with 0 dollar withheld into W2c.  They just keep spinning.  My question is,

Should W2 list the all states which have tax withholdings (my case NJ), or, should it list all the states which are subject to tax withholding (my case NY and NJ, NY withholding zero)?

 If it is the first case, I will have to go with the current one because I do not think they will correct the entire year’s accounting.  If it is the second case, I will keep trying to have a W2c.  

[Hal_Al]

The W-2 should  list all the states which are subject to tax withholding.  Although it is not unusual for an employer do only do the works state, since the residence state gives a credit (essentially the residence state is not "subject" to withholding).

Either way, you should  go with the current one.  It's gonna be a lot less work for everyone.  You don't need s corrected W-2.  You can "make one up" at the W-2 screen in TT.

As you said, your case is special (the onerous NY rule on telecommuters).