Multiple W2 Forms from Two States-Filing Issues

Forum|Forum|1 year ago
January 16, 2025
2 replies
32 views

Hi, we moved to NJ from NY in March 2024. I just received two W2 forms from the same employer, which makes sense (two states). There is one issue I don't understand, the total combined state wages are much higher that total Federal Wages (Box1). For example if Box 1 on both W2 forms is 120,000 and the State A (NY) is also 120,000 (although actual wages for 2 months should be let's say 30,000), State B wages on second W2 form (NJ) are 90,000, the total Box 1 also 120,000. Shouldn't the total state wages equal total wages Box 1? Am I being double taxed here and how should I input this data in TurboTax? I normally use W2 import, but I'm afraid it's going to make a mess. To make things worse there was an employer change in December 2024, so I'm expecting another set of W2 forms and there is also NYC (local) tax involved.

I'm also afraid that if I showed on my NY tax return that my wages were 120,000 and I paid only tax on 30,000 NY wages, they'd go ape and tell me to pay estimated taxes and penalty.

Any help will be appreciated.

AmyC

Level 15

1. No. NY and NJ have different laws for calculating wages.

2. Yes, do not import. The w2 forms went to the IRS and to the states. You will input on the w2 screen, the state section to show what was actually earned in which state. It sounds like NY $30,000 and NJ $90,000 might be your input.

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ParkNYCAuthor

Level 5

According to the NYS tax department I would have to attach form It-203-B if I lived in NY, which i did ( Box H form It-203 marked). In this case I would have to report the whole amount which equals to federal amount. So it looks like I can import my W2 forms and then work on Schedule A and allocate actual income earned when resident. If this is the case, allocating the income manually to NY might not work. They said, if I don't file IT-203-B they will not issue any refunds. Can you clarify your response please?

@AmyC

ParkNYCAuthor

Level 5

Just my two cents, call your CPA or tax department directly if you're looking for knowledge. I'm appalled how many so called "tax experts" provide wrong information here. I would say, they have very little knowledge about state taxes. Good luck!

TomD8

Alumni - Champ

@ParkNYC --

New York has a rule for part-year residents who perform only part of their services in New York State. In such cases, New York requires that the amount in Box 1 of the employee's W-2 match the New York state wages shown in Box 16. See page 3 of this New York tax memorandum:

https://www.tax.ny.gov/pdf/memos/income/m02_3i.pdf

It's then up to the employee to allocate the income appropriately on his or her part-year resident NY tax return.

I can tell you that this quirk of New Yok law causes numerous similar questions to this forum.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.