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My NJ Taxable Income is higher than what I earned

Forum|Forum|7 years ago
June 1, 2019
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Hi ,

I worked in Westchester, NY last year and lived in NJ. I earned about ~65k in NY but my NJ taxable income shows that I earned about ~120K. Whereas my federal tax return shows taxable income of 65K.

Did i do something wrong? or that's how this is supposed to be because I have two W2's and they both have slightly different Income . It looks like the final ~120k amount is the sum of these two income

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Best answer by DanielV01

There is an adjustment to make on your NJ return. When two states are listed on the W2, and one is NJ, the programming requirements for NJ doubles-up the income. However, you can remove the double-added income by doing the following:

On the NJ return, you will see a screen titled About Your W-2 State Wage Information. The next screen is titled Let's Confirm Your Taxable State Wages from (Employer). Click on the NY box so that those reported wages are not included on New Jersey's return. Your income will be reduced to the appropriate income amount, and the credit for taxes paid to NY probably reduces your NJ tax down to zero or near zero.

DanielV01Answer

Employee

There is an adjustment to make on your NJ return. When two states are listed on the W2, and one is NJ, the programming requirements for NJ doubles-up the income. However, you can remove the double-added income by doing the following:

On the NJ return, you will see a screen titled About Your W-2 State Wage Information. The next screen is titled Let's Confirm Your Taxable State Wages from (Employer). Click on the NY box so that those reported wages are not included on New Jersey's return. Your income will be reduced to the appropriate income amount, and the credit for taxes paid to NY probably reduces your NJ tax down to zero or near zero.

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