Taxes withheld from incorrect state - part time resident in both states

[swh220]

I moved from NJ to PA in this previous year and as I understand I am therefore a part time resident in both states. However, when I started my job in PA I incorrectly had NJ taxes withheld for two months as the payment system still had my old NJ address. This was fixed and was changed to PA taxes withheld for the rest of the year. 

I spoke to a tax expert through the TurboTax free basic live feature who recommended it leaving it in this "incorrect" state and filing. This seems simple enough and is fine with me if it does not get me in trouble - the tax expert said this would not be questioned and avoids any difficulties NJ might give me in returning additional taxes.

I see I can adjust my taxable income in each part-time resident tax return. This results in a larger NJ return and sets up a payment plan to pay additional PA taxes over the next year. This seems technically correct but more complicated and I am concerned I could make some kind of mistake in this approach. 

Any thoughts on what I should do? If you recommend the second approach, let me know if it sounds like I am on the right track with what I described.

[Mike9241]

are the wages for each state in box 16 correctly allocated? that's what the states will look at compared to what you show and probably not accept a manual adjustment to that amount.    you can call either state's department of revenue to verify. 

[swh220]

 @Mike9241 Hey, my bad for the super late response! They are technically not correctly allocated, there should be more in the PA box and less in the NJ box. If they only compare to these listed amounts in the W2 then it seems I would be fine submitting it as-is without a manual adjustment. My only concern would be if they compared this to my residence history which states I moved to PA in August but did not start getting taxes allocated to PA until October (i.e. if PA dept. of revenue had an issue with this period where taxes were allocated to NJ instead). But maybe they do not look this deeply, especially for a simple return

[ErnieS0]

You should correctly report your wages to both New Jersey and Pennsylvania. You can correct your wages on the New Jersey and Pennsylvania sections.

You will owe tax to PA for the period your employer mistakenly withheld NJ tax and your NJ refund will be higher.