Proof for split of income?

[taxhelpplz]

Article says -

https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/allo[product key removed]e-p...

Earned income allocations

What if you continue working at the same job while living in 2 different states? Some companies will send you a W-2 with the state totals listed, others will send you two separate W-2’s for each state. If not or they didn't change the withholding to the second state, then you’ll have to estimate how much income you earned as a resident of one state versus the other (THIS SCENARIO APPLIES TO ME).

--My Case--

In my case, the withholding wasn't changed to the second state, so the W2 shows only NJ.

I did split my income between two states NC and NC, after filing taxes, NJ didn't liked it, they sent me the letter.

NJ state is asking the proof for split of income, because W2 only shows NJ, not the second state NC.

They are asking for proof from employer.

Why employer would give the proof for the second state? That  too for the year 2020 during COVID lock down.

So in other words, this article by Turbo Tax is wrong and should be corrected.

This means, go by W2 listed state source of income state. If W2 is wrong, get it corrected or have proof, I've residency proof in NC, but seems like that isn't enough, to convince it's the income i earned in NC.

If my W2 says NJ withheld income, that means the income is earned from NJ source.

These are my thoughts, let me know if u like to refute, agree, or disagree.

[taxhelpplz]

#If my W2 says NJ withheld income, that means the income is earned from NJ source.

Like to add, I cannot split NJ income in to two states NJ and NC.

So the article by Turbotax is wrong, it's misguiding the people. 

[Mike9241]

it's the w-2 that's wrong not Turbotax. if you earned income as a resident of two different states the employer is supposed to split the W-2.

[NCperson]

@Mike9241 - not an expert here, but aren't there rules that vary by state, that if your job is in NJ but you moved to NC (temporarily) for the covienence of COVID, then you are still required to pay full year tax in NJ...

it is not clear from the @taxhelpplz what the circumstances were that he was in NC for part of the year.  Was that a permanent move or temporary due to COVID????  is it possible that the employer expects the work to occur in NJ and therefore didn't not adjust to NC withholdings as they never approved the move, even for the convenience of remote working due to COVID?

[taxhelpplz]

@Mike9241 

true w2 is wrong.

but read the turbotax article again, it says, if the employer doesn't split the income, you can do on your own, which is a wrong advice. 

[taxhelpplz]

@NCperson 

i never informed my employer about the move, which i realized, i should have simply altered my withholding in payroll.

what i learned my from local tax professional is, the residency location doesn't matters. What matters is the state source of income and the most important what matter is, what's state is written on W2.

All these internet articles confuse people like us, by keep stating, u pay tax to the state where u work, which in fact is not accurate factually. in my case, i worked in NC remote, but actually for NJ employer + withholder. they could have simply said, follow your w2.

taxes could have been lot simpler, if articles are written very friendly for folks like us. they are supposed to explain the gotchas.

BTW i was temporary in NC, but lived more than 184 days.

[NCperson]

@taxhelpplz - did you file a tax return in NC? are you considered a NC part year resident?  working in NC for 183 days doesn't necessarily mean you are a resident.

if you filed in NC, did you file as a part year resident or a non-resident in NC? that could help clear up the New Jersey issues.

Proving North Carolina Residency

1. Any document issued by the state of North Carolina or a county or city in North Carolina or the federal government​ (think driver's license)
2. ​North Carolina Vehicle Registration Card, insurance policy or title.
3. North Carolina Voter Precinct Card.
4. Military orders or military documents​
5. Utility bill or cable bill.