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AI-TheAnswer
New Member

Allocate Wages Between States

Hi - I need help allocating wages between states (IL / NJ / NY). To give you some background, I work as a consultant for a large publically-held corporation with projects across IL / NJ and a local office in NY so my wages have been arbitrarily divided on my W-2. I would like to allocate the wages based on my time in IL (54%) and NJ (46%) as I only went to NYC <2 days over the 2018 calendar year.

I get the feeling that I am overpaying taxes for each state based on the following screen. Please note that I have removed the sensitive information to protect my privacy.

It would be great if a TurboTax representative could walk me through these steps to make sure that everything is being filed correctly.

1 Reply
maglib
Level 10

Allocate Wages Between States

what state is your state of domicile, you do that domiciled state last and get a credit for taxes paid to non-resident states.  The screen you see should only show up on your resident return, you would check all the non-resident states to remove those wages and yes it is correct.  During the Federal personal info section of the interview you should have answered yes that you worked in another state and only for states that are NOT reciprocal tax states (you don't have any above, this is if someone else reads the answer) and states that you are required to file in based on the income allocated.  Most non-resident states start with federal income, you allocate income during the interview and make sure to not allocate interest, dividends, cap gains to non-resident states....  TT will handle this appropriately.  I hope this helped and gave you some confidence.
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