Hi tax experts,
I'm in NJ with my spouse. My employer, based in CT, has given me a w2 with CT wages for the first two months of 2023 even though I did not earn any of this income in the state as I am a 100% remote worker (my wages were actually earned in a mix of NJ, NY, and VT as I mostly worked from my residence, but sometimes travelled to my mom's in NY or to my MIL's in VT and worked from their respective residence).
I have correctly allocated on my CT return (which I am filing to get a refund of the state tax withheld) that 0 days were worked in CT, so all of the withholding should be returned to me.
However, this is leaving me in a pickle with the NJ return as the wages on the NJ return are the sum of:
So in effect it is counting the portion of my W2 that my employer considered me a CT worker twice. Is the fix as simple as making an adjustment on the wage income screen, reporting a negative number, and saying CT double taxed income? This doesn't seem quite right, but it does get line 15 on the NJ 1040 to be an accurate number. I am filing with a COJ for NY and VT and do say on those forms the portion of the wages that would be taxed by both NJ and the other state... but since I have no actual CT income, there is no credit to claim for that state.
Go back to the federal income section and edit the state section of the W2. The states have a copy of the form. This is where you get the program to properly tax income. Subtract the CO income from the NJ income for the program to have the correct income to tax.