NJ State Tax Return - Duplicate wage removal

[Norm85]

As an NJ resident in 2022, I worked for a CT based film production company.  They sent me to GA for work where I made wages and paid the associated state taxes in GA for 2 months. 

I then came back to NJ to do post production for another 2 months.  Although the company was based in CT, I did remote work at home in NJ --- but for that time, my W2 showed that I paid CT state taxes, but paid no NJ state taxes.  I'm also not sure where they got the $27,600 amount from.  If anything it should be the same amount as the CT wages no? (since its the same time period)

I've completed both GA and CT state returns, but now i'm on the NJ state return and stuck.   Please advise on which state wages should be removed below. thanks in advance.

[ErnieS0]

Remove your Georgia wages. If I’m understanding your question correctly, those are the only wages that overlap the New Jersey amount because the company withheld Connecticut tax, but no New Jersey tax, when you were paid to do post-production in NJ and counted those wages as CT income.

Your total earnings after you omit GA wages should be close to Box 1 of your W-2. 

New Jersey taxes some benefits that the federal government and other states do not, such as retirement plans except for 401(k) plans, so NJ wages can be higher. It’s also possible you received some reimbursements that were included in your NJ wages which you can deduct on your NJ return.

If you worked remotely, your company should not have withheld CT tax. You can claim $0 income on your CT return and get back all your withholding. You’ll have to pay tax on that amount since nothing was withheld.

You can claim a credit on your NJ return for GA tax paid.

[Norm85]

@ErnieS0 

Oh really?  I would've expected to remove either NJ or CT since those wages were counted for the same time period.

My total wages on this particular W2 amounted to $46,000.  $21,000 of it came from GA where I was actually in GA between April-June and those state taxes were withheld.  And adding up my paystubs for that time period,  GA's Box 16 adds up correctly to $21,000.

Then June-August was CT/NJ post production work and it seems like the $25,000 wages for CT adds up correctly (again from my pay stubs).  Which gives the grand total of the Box 1 - $46,000. And again it's just as you said, the CT taxes were withheld but not the NJ taxes.  I'm thinking maybe they didn't count 'remote' work as actually remote?  So I just thought NJ's Box 16 ($27,600) were just a duplicate of the CT wages. 

[AbrahamT]

Yes, NJ seems to be duplicated. You would just count the Ct. taxes for the amount that the employer based Ct company paid you in taxes as well as the taxes from GA. You see Ct is one of those state that adopt the "convenience rule" which means that the company may withhold taxes from the state they are incorporated in although the employee will work remotely in his homestate namely; NJ in your case. So in essence, the NJ tax wages are really the Ct tax wages. So go ahead and remove the 27,600 from NJ. On NJ, you should have the 46,000 taxed to you which would be carried forward from your federal.

You will consequently receive a credit on your NJ taxes for the state taxes held in Ct to avoid being taxed twice both by Ct and by NJ.