Remove these wages (Work in NY live in NJ)

[Midge121]

If all income from both states show at the summary page of the NY return, do I then go back and enter that only some income was made in NY? If I do that, it then only shows what was originally entered on the W2 that stated NY income. It then asks me to allocate how much was made in NY. When I say 100%, if then asks how I came up with that allocation. What do I put?

if I go that route, it gives Me a penalty and says I owe thousands on the summary page. WTF? Why is NY taxing me on everything I made in both states?

[RobertG]

If you live in NJ and work in NY you will be filing a non resident NY and a resident NJ return.

Do the NY first. You will get a credit for taxes paid to NY on the NJ return.

[Midge121]

That’s what I’m trying to do but ny is taking all of the salary made for the year and taxing me. There are 3 W2’s. One is my wives works in Nj) and the other 2 are for the company I work for. One was the income I made in Nj for them and the other is the income made in NY. They already split it. When I put that only some income was made in ny, it shows the w2 that has ny income. Then asks how I came up with the allocation. I say employer put on separate w2. Then at the summary, it shows that it’s taking all of my income for my wife and myself for both states and taxing me on it. Why? I thought I should only get taxed on ny income. How do I even fix this?ive never had an issue with this before. I’ve once worked in ny for a few weeks and didn’t have the problems with turbo tax then like I am now. 

[DaveF1006]

It may appear that NYS is taxing you on all your income but in reality, it isn't.

The way that the NY state tax return works is that NY looks at all of your income from all sources and generates a NY state tax on all this income. However, when NY is determining the actual NY state taxes owed, NY multiples the total NY taxes on all income by the percentage of NY source income over all source income. If you look at the actual tax form, you can see what I mean,

[maglib]

@Midge121  in NY interview you will answer all was from NY and you will not have to do any allocations.

[Bdon888]

"you always remove the state you don't reside in wages"    If I live in NY but work in NJ, should I still remove the NJ wages then when filing for NJ state return?

[ErnieS0]

No. In the New Jersey section, remove your New York wages if you have two W-2 amounts. NJ will tax you on the NJ income listed on your W-2 Box 16. NJ wages are often higher than NY wages because NJ taxes some items that are excluded from NY tax.