State Taxes

[aravindreddy845]

In my w2 in wages, tips, other compensation it shows 107,129.62 and in state wages tips it shows NJ 56,243.05 and for NY it shows 107,129.62 (my entire income). I moved form NY to NJ end of June. I am trying to understand why my NY state taxes are reported as 107,129.62 which is my entire salary for whole year. How would I know actual NY reported wages. Any input is appreciated. 

[hbl3973]

aravidreddy845,

This is something to bring up with your payroll department but, reading between the lines, I assume you commute to work in NY, in which case NY treats you have having NY income.  See

https://support.taxslayer.com/hc/en-us/articles/360018416492-How-do-I-file-if-I-live-in-New-Jersey-b...

for example, though you would file a NY part-year resident return an not a nonresident return.  NJ goes into some detail about their process at  

https://www.state.nj.us/treasury/taxation/pdf/pubs/tgi-ee/git6.pdf

In this assumed case, while you would be forking over a lot of tax to NY, you would receive a tax credit against your NJ income tax for the NY tax that would be attributed to the period you resided in NJ.

[ErnieS0 · Accepted solution]

It depends. If you moved to New Jersey but continued to work in New York, you still owe NY taxes on your entire wages.

Scenario 1: Moved to NJ but still working in NY

In TurboTax, you’ll have to split your NY income between resident income (earned while living and working in NY) and nonresident income (earned while working in NY but living in NJ). 

New Jersey will give you credit for double-taxed income for NY nonresident income earned while living in NJ on the New Jersey return. 

The total of your NJ + NY wages may be higher than your federal wages, because NJ taxes some benefits that the IRS and NY do not, such as pre-tax retirement contributions except for 401(k) contributions.

• On the screen Date of Last Move, select Did not live in New York but received income from New York sources while a nonresident
• On Tell us about your New York resident income, enter the amount you earned while living in New York
• On Tell us about your New York nonresident income, enter the amount you received while living outside New York

Scenario 2: Moved to NJ and working in NJ

If you moved to NJ and are working in NJ, you can allocate your NY wages. New York requires employers to report total wages earned everywhere in W-2 Box 16 so the allocation is done in the NY section of TurboTax.

• On the screen Date of Last Move, select Did not live in New York and received NO income from New York sources while a nonresident
• On the screen New York Income Allocation, answer NO to Were all of your wages and/or self-employment income earned in New York State?
• On Your Form W-2 Summary, tap Edit next to your employer
• On Allocate Wages to New York, choose an allocation method (days or percentage)

Scenario 3: Moved to NJ and are working remotely for the NY office

This is tricky. If you became remote and never set foot in NY after moving, you should fall under Scenario 2. However, NY is very aggressive about taxing telecommuters so there’s a chance they will audit you and claim you are working from home for your convenience, and not the convenience of the employer, meaning you would owe NY tax for the whole year.

If you lived in NYC, your NYC wages should be correct in W-2 Box 18. In TurboTax indicate that you were a part-year resident of NYC. New York City does not tax nonresidents.

[aravindreddy845]

Thank you.

[aravindreddy845]

Thank you.