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March 22, 2025
Question

How to determine state tax when W2 says it's higher than federal wages

  • March 22, 2025
  • 1 reply
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I worked in NY, but lived in NJ. From my W2, it says the following:

  • Federal wages (box 1): $28,796.54
  • NY wages (box 16): $28,796.54
  • NJ wages (box 16): $31,158


I am confused why my NJ wages are higher than the federal/NY wages. When I submit my NJ state return, what should I put as state wages?

    1 reply

    March 22, 2025

    New Jersey taxes certain benefits that are tax free on the federal and New York return so your New Jersey state wages are usually (and in your case) higher.  You do NOT want to make an adjustment because you will be underreporting the NJ income.