Question

Worked in same state all year, but lived in two states. How to enter the W-2 info?

Forum|Forum|2 years ago
February 18, 2024
2 replies
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I had the same job all year in NY city. I lived in NY city for the first nine months then moved to NJ.

I received a two-page W-2, one has a NJ State Wage and Tax statement and the other has a NY State Wage and Tax statement and a City Wage and Tax statement.

Is there a way to go a TT section which will walk me through, step by step, a situation like this?

SharonD007

Yes, TurboTax will walk you through filing state tax returns for each state. You will have to file part-year resident state tax returns for both New York and New Jersey. Follow the steps below to file part-year resident state tax returns for each state. Enter both W-2s exactly as they are.

If you've already entered your personal information, review your entries to help ensure that TurboTax will help you create the correct part-year tax returns.

Open TurboTax and select My Info
A Personal info summary screen will pop up
Select Edit by your name
Scroll through the screens to ensure that you have the correct answers for your state of residence and choose that you lived in another state. A new section will appear asking for your previous state of residence. Select the other state that you lived in.
Scroll down to Other State Income and select Edit
Check your answer for Did you make money in any other states? Answer the questions and select Continue.

After you complete your federal tax return and you move to the State Taxes sections, both of your part-year state returns will be listed. Prepare the state that you moved from first (New York) then the state that you live in (New Jersey).

‌Review the TurboTax articles: How do I file if I moved to a different state last year? and How do I file a part-year state return?

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S

starfishtAuthor

Thank you Sharon.

I completed my NY return. I am now at the screen in the NJ return where TT asks says "Tell us about the money you earned in New York". It wants to know: "the double-taxed income while a resident of New Jersey" and the "Tax paid in New York".

In the NY return I divvied out the interest, dividend, and cap gain/loss income between the states based on the percentage of the year I lived in each state (70% NY/30% NJ). But I reported 100% of my wages in the NY return because the NY W-2 reported all my wages in state wages box 16 and taxed all of it.

Can I assume that the "income" in this screen refers to wages? How do I calculate "the double-taxed income while a resident of New Jersey" and "Tax paid in New York"? I guess a related question is how much wages should be reported in the NJ return? (The NJ W-2 has a number in state wages. I don't how they determined it. It's about 12% of my annual wage. The state income tax box is almost nil.)

DMarkM1

Yes. So far you have entered correctly. Now TurboTax wants to help you claim a credit for taxes paid to another state. In the NJ return when asked about the "double taxed income" that amount is only the wages earned in NY while you were resident in NJ. That is true because you already allocated the other income sources according to your residence.

Since you used 70/30 as your residence proportion, apply the same to the wages earned in NY; so 30% belongs to NJ and was double taxed.

The other figure you will need is the actual NY tax on that double taxed income. That amount is not available in TurboTax since your situation is not typical of part-year returns. Normally, when someone moves states they change jobs so there is no overlap of taxable income. In your case you have income that does not overlap (interest/dividends) and some that does (wages) and you only need the tax on the overlapping wages.

You can, however, calculate that number using your NY Tax Summary (see below). On the NY tax summary divide the NJ wages that your figured earlier by the NY taxable income. Multiply that result by the NY tax liability. That will be the NY tax on the NJ wage portion.

Now you can claim a credit on your NJ return for taxes paid to another state.

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "NY Tax Summary"

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AmyC

Employee

Yes, we have live experts that can review your return. See What is an Expert Review and how can I schedule one?

I answered a question with a NJ/ NY situation similar to yours. You may want to view my answer with the state rules and documents here.

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S

starfishtAuthor

Given my situation, about how much would Turbo Tax Live Assistant cost?

DMarkM1

The product will likely be Deluxe Live you'll pay the difference between what you already paid and what the upgraded product cost. Here is a link with more information.

Also, NY will be taxing you on all the income earned working at the NY job. So 100% of the NY income on the NY form is correct. You are just getting a credit on your NJ return to mitigate the tax paid to NY only on the income double taxed by NY and NJ (working in NY while resident of NJ - the 30% of wages figure).

If your employer only had NJ taxes withheld on a small amount of wages, when 30% of wages should have been taxed, then you will likely owe NJ taxes.

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