Should I allocate income to the state printed on w-2, or the actual state I worked in?

[ny1301]

My W-2 reported my income to NY, and withhold NY income tax accordingly. However, the department I work in has both NY and NJ offices. I had been working in NJ office for the whole year. Could I allocate all my income to NJ (which is my resident state) ? Allocating to NJ will reduce my total tax. Thanks!

[KittyM · Accepted solution]

You will need to file a Non-resident New York return to claim a refund of your New York tax withheld, and then you can properly report allocate 100% of your income to your New Jersey Resident return.

If you expect to work out of the New Jersey office only, you should request your employer to withhold New Jersey tax, or at least no New York tax.