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January 24, 2021
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I live in NJ but work in NY, how do I enter state tax?

  • January 24, 2021
  • 1 reply
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I have only one NY income, and my W2 has two states taxable wages on box 16.

One is for NY and the other is for NJ.

I knew I should file a none residen tax return for NY and a resident tax return for NJ.

My question is how I should enter them in the wags & income section.

If I enter them according to the figures on the W2. something looks wrong.

Assuming my total earning is 10k, the NY taxable wage is 7k, and the NJ taxable wage is 9k.

When I file for NJ tax return, the systeam would consider that my total taxable wage is 16k.

However, it should be 9k.

Did I do anything wrong when I eneter the wags & income section.

Best answer by ErnieS0

Remove your New York wages from New Jersey to stop TurboTax from double counting your income on your NJ return.

  • In the NJ section, go to the screen Let’s Confirm Your Taxable State Wages from (Your Employer).
  • Check Remove These Wages next to NY. Then Continue.

New Jersey residents working in New York are taxed by both NY and NJ on their earnings. NJ provides a credit for tax paid to NY.

 

New Jersey state wages are often higher than federal or New York wages because the Garden State taxes some benefits that the federal government and NY do not.

 

NJ Wage Exclusion

1 reply

ErnieS0Answer
January 24, 2021

Remove your New York wages from New Jersey to stop TurboTax from double counting your income on your NJ return.

  • In the NJ section, go to the screen Let’s Confirm Your Taxable State Wages from (Your Employer).
  • Check Remove These Wages next to NY. Then Continue.

New Jersey residents working in New York are taxed by both NY and NJ on their earnings. NJ provides a credit for tax paid to NY.

 

New Jersey state wages are often higher than federal or New York wages because the Garden State taxes some benefits that the federal government and NY do not.

 

NJ Wage Exclusion

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January 25, 2021

Thanks for the tip.