Live in New Jersey work in NYC. Several Questions. Please Help.

[Cynthiad66]

New York and NJ has a reciprocal agreement.  You will need to file a NY Non-resident return and NJ state return. Prepare the NY return first as that is not you residential state.  When the NJ return is prepared, you will receive credit for taxes paid in NY.

Box 16 and 17 will not match for the different states.

Box 6 yes it can be deducted from NJ income

Enter the W-2s on the Federal return and if entered correctly the information will flow to each state as required.

[domjrica]

I have already completed my federal return as well as my non-res NY state return. NY was done before starting NJ.

For the Box 6 deduction, do I just add that to the medical expenses page in the NJ state return? Additionally are my employer health insurance premiums deductible from NJ?

Also do you know why the gross pay would be different between the states (not in a numbered box, but in the adjustment section in the top right)? For example the NY gross pay is 510, while the NJ is 500.

[Cynthiad66]

Box 6 is not a deductible item.  Medicare tax is used to fund the Medicare health system in the United States. The tax funds are used for Medicare Part A, which covers hospital insurance for senior citizens and those living with disabilities.

There are some items that NY includes as income and NJ does not.  They usually have to do with some type of Benefit allowance.