Enter your W-2s as they appear. It's important to have the correct wages taxed on each state return based on residency. During your New Jersey (NJ) residency and while you worked in New York (NY) you will pay tax to NY on the income earned while working inside of NY, however NJ will give you a credit for taxes paid to another state on the same income. For this reason you see the income for both NJ and NY.
New York State nonresidents and part-year residents
You must file Form IT‑203 if you meet any of the following conditions:
- • You have income from a New York source (see source below)
Nonresidents – New York source income
For nonresidents New York source income is the sum (with adjustments for special accruals as defined on page 48) of income, gain, loss, and deduction from:
- services performed in New York State; (For other items on the list click this link for NY NR Instructions)
In this situation there is no minimum number of days as a nonresident.
When money is earned by physically working, or owning property that earns income, in a nonresident state they want the tax dollars associated with those earnings.
For NY and NY: The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income. As the resident state all worldwide income must be included.
The credit for tax paid to another state on the same income will be the lesser of:
- the tax liability actually charged by the nonresident state, OR
- the tax liability that would have been charged by your resident state
Review the link below if you have questions about a particular state. You can also add any question here as you start to prepare your state returns.
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