Two W2s from same employer for same job (NY/NJ Specific)

[Mr Bob471]

My wife and I moved to NJ part way through the year from NYC. Because of NY’s tax rules, we still need to pay income taxes on wage income for any job performed in NY. All our addresses were updated appropriately and tax forms filled out. The plan is fill out the non resident /part year NY return and get credit for NJ on the taxes we had to pay to NY as is the norm around here.

One of my wife’s w2s lists income from NY but also income “from” NJ. The employer doesn’t have a physical presence in NJ, only NY. The NJ income amount is also reported as part of NY income. TT indicates we should just enter two state line items for this W2, but these aren’t separate jobs performed in separate states; everything was performed in NY. Is there a way to report this in TT so the state income amount reported for NJ isn’t double taxed?

Basically of 10k actual reported income in box 1 NY state wages reporting 10k, NJ state wages 5k. I don’t want NJ to think she made 15k when she only made 10k (5k while a resident of NJ) and we end up getting double taxed on the 5k. No idea why her employer did this; all our other W2s are fine and don’t report this way.

[DanielV01]

You always want to enter the W2 information as it appears on the W2.  Then, when you get to the NJ return, you will see a screen entitled "About this income".  It will show the two lines (NY and NJ) on the screen.  You will uncheck the NY box so that only NJ calculates.  On a later screen, you will be given the option to claim a tax credit for the income tax NY assesses on the income that must also be reported to NJ from the date you moved there.

New Jersey requires this of tax software programming.  It does not allow the programming to automatically filter out the amounts that have been reported on two separate lines, and programming is required to add them together unless they are filtered out.  This is how you will do so.