Taxable State Wages

Forum|Forum|5 years ago
March 17, 2021
3 replies
8 views

I live in VT and work for a company in NJ.

Up until 4th qtr 2020 I was taxed in VT only. As of 4th qtr 2020, my job was now considered a headquarters job and now taxed in NJ.

Say my wages for the year are $100,000

Box 16 has NJ taxable wages of $30,000 & VT taxable wages of $80,000 = $110,000

The two states combined should equal box 1 wages of $100,000 right?

how do I adjust or do I need a new w-2?

Thanks

ToddL99

Level 13

Do you ever physically work in NJ or only just telework from VT?

TWN21Author

Level 2

In 2020, I never physically worked in NJ because of travel restrictions. (all telework from VT)

I will be required to physically be in NJ 2 days every other week when company travel restrictions are lifted.

ToddL99

Level 13

If you never physically worked in NJ in 202, none of your income is subject to NJ tax.

You will file a NJ non-resident tax return and indicate that none of your income was "NJ-sourced" (earned in NJ); all of the NJ tax withheld will be refunded.

All of your income is subject to VT tax, primarily because you were a resident of VT for all of 2020 but also because you performed all of your work in VT.

The location of your company's headquarters is irrelevant to where your income is taxed.

(When you start working part-time in NJ, then the income for those days will be subject of NJ tax).