Why does it duplicate state wages and income tax?

[DanielV01]

If your state is either NJ or PA, this is common and can be adjusted.  Please clarify your state return.

[hughmorg62042]

TurboTax is asking me to identify "duplicate wages" on a W-2 that includes both NY and NJ wages and taxes withheld. The wages, almost $16,000, are the same within $44. They are for the same job (acting) that was worked in NJ. I am a full-time NY resident. In this context, what does "duplicate" mean?

[LenaH]

On your nonresident New Jersey return, duplicate wages would be the amount for New York in Box 16 of your W-2. Therefore, please check the box for the NY state wage amount on the page Let's Confirm Your Taxable State Wages. I have attached a screenshot below for additional guidance. 

It is important to note that New Jersey state wages are often higher than federal or New York wages because New Jersey taxes some benefits that the federal government and New York do not. 

@hughmorg62042

[hughmorg62042]

I bulled my way thru the NJ return by getting TurboTax to zero my NJ income. This included telling TT that my NJ wages were a duplicate of my NY wages (within $44). (This point was my original hangup, my reason for my question here. I wound up with $0 NJ wages and income on my NJ1040-NR return. This enabled me to get all $689 of my withheld NJ taxes refunded. All of my wages from this and other W-2 jobs and my self-employed business income were taxed by the Feds and by NY.

[hughmorg62042]

Thanks, LenaH. I did the opposite; I checked that the NJ wages (for this job) were the duplicate.  I'll try to post a screenshot, too. I also worked to declare within TT that none of my 2021 income was related to or taxable by NJ.
The funny thing is, my [son's] actual work was done in 2020 in NJ. His 2021 wages for this job were entirely residuals from late 2020 and 2021 showings of the ads he acted in (filmed) in NJ in 2020.

[hughmorg62042]

[LenaH]

No, do not remove the New Jersey wages from your New Jersey return. If you earned the acting income in New Jersey, then it is taxable in New Jersey. As a nonresident of New Jersey, you will be taxed on any income that is earned in the state. New York will also tax you on the same income, but your resident state will give you a credit of taxes paid to New Jersey. This eliminates double taxation. 

When filing both a nonresident return and a resident return, it is best to complete the nonresident return first in order for the credit of taxes paid to be calculated correctly. 

@hughmorg62042

[hughmorg62042]

LenaH, I have done this before (for my NY actor son) for these non-resident state returns, for CT and MI in some past years. I know NY will give credit for taxes paid to other states, but that complicates the NY return. I've not yet filed for NJ or NY, and I have time, so, I will redo these 2 states your way, starting with NJ.

[ErnieS0]

Awesome Tax Expert @LenaH is correct. Do not remove your New Jersey wages. NJ receives a copy of your W-2 and will be looking for the NJ Box 16 amount, not your NY amount. 

The duplicate wages are not related to the credit for taxes paid to NY. New Jersey will give you credit for the appropriate income and tax reported on the NY return.

Connecticut and Michigan have completely different tax systems than NJ. New Jersey does not use federal income which is why you NJ wages generally do not match Box 1 federal.