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:
- spouse's full year W2 wages
- my full year W2 wages
- my CT W2 wages
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.
