Live in NJ, work in NY 2021 - conflict on what two pages tell me?

[cmilkosky]

Hi,

I switched jobs in September, 2021 and with the new job, I work in NY and live in NJ.  

On "Let's Confirm Your Taxable State Wages from <EMPLOYER NAME>", I am given the choice to check NY or NJ wages to remove.  From what I've read on a lot of posts here, I'm supposed to check NY to remove those wages.  That's great and it reduces my NJ Tax Due significantly.

However, on the very next page TT tells me, "About Your New York Wages - New York has different rules around reporting wages than most states.  You will need to pay taxes in both New York and New Jersey on the same wages if you worked in New York and lived in New Jersey".  So, do that mean that I actually should not check the NY box in the previous screen to remove those wages?   This screen makes me think that I should leave in the wages for NY in the previous screen.  

Please help - this is the first time I'm filing taxes for when I work in NY and live in NJ.  

[ErnieS0]

It depends on the source of your New York and New Jersey wages. The duplicate wage box is for wages from the same W-2.

NJ taxes income differently from NY so TurboTax allows you to remove duplicate wages. For example, New Jersey does not allow you to exclude from wages amounts contributed to deferred compensation and retirement plans, other than 401(k) Plans so the NY and NJ taxable wages will be different from the same employer.

If your NJ wages are from January to September and the NY wage if from October to December then do not remove NY wages because they are from different employers.

[cmilkosky]

Thanks for the response - I just want to mention a little more to make sure I'm understanding correctly.

So, in TT, I have prepared both a NY non-resident and a NJ resident state filing.  My new employer (NY - for Oct, Nov, Dec 2021) sent two W2's: one that covers Federal and NY and another set that is "NJ State Reference Copy".   Even though they sent me two, I am assuming this represents *one* W2.

The "Lets confirm Your Taxable State Wages" question appeared when going through my NJ taxes (not NY) and says it is for the W-2 from my new employer (in NY).  Listed in this question are two entries:  one for NJ and one for NY representing the "State Wage Amount (box 16)".  The NJ box is a little higher than NY.   

Given that, it looks like I *can* check to remove those NY wages from my NJ tax filing because they are part of the same W2.  Does that sound right?

Thank you again!

[ErnieS0 · Accepted solution]

Yes. If you have two wage amounts from your new employer then remove the NY wages in the NJ section of TurboTax. It makes sense that NJ wages will be higher than NY wages.

You're most welcome, Good luck.

[cmilkosky]

Thank you again!