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W2 - NY & NJ Tax

Forum|Forum|4 years ago
March 1, 2022
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Hi,
I work for an employer with offices in NY & NJ. I am based off of their NJ office. Since I worked sometime in NY, my bonus amount in 2021 had some NY component in it that warranted a NY state W2. I am using TurboTax. Following are some hypothetical numbers for my questions below with regards to filing the returns with TurboTax

1. Federal W2 - Box 1 (Wages, Tips, other comp) - says $1,50,000
2. NY State W2 - Box 16 (State Wages, tips, etc) - says the same number as Box 1 - $150,000
3. NY State W2 - Box 17 (State Income Tax) says $3000
4. NJ State W2 - Box 16 (State Wages, tips, etc) - says the same number as Box 1 - $150,000
5. NJ State W2 - Box 17 (State Income Tax) says $5000
6. My employer emailed a word document saying that my NY taxable wage (NY portion of the bonus) - $9000

Questions -

a. In the NY Tax return, I believe I have to mention the income that is earned in NY. It will be $9000, but I only have the word document as proof. Is that sufficient ? I mean if it is not mentioned anywhere in W2, can I still report the $9000 as NY income (in the place where TT asks for the NY Income amount)

b. While doing my NJ taxes, will my state wages be $150,000 as in (4) above or will it be $150000 - $9000 (the NY portion of the bonus) = 141,000 ? If so where should I edit ?

c. I worked in NY for 299 of the 365 days. The % of days worked in NY comes to 81.9178% However while filling the NY State tax, it allows only 2 decimals, which is 81.92%. It throws off the actual NY portion of the bonus by a dollar or so. Is that ok ?

Thanks

Best answer by ErnieS0

New York requires employers to report total wages in W-2 Box 16. However if your employer said you made $9,000 in New York then you can allocate your wages in the New York section.

Your NY income may not match what your employer is reporting if you are allocating by days. That's fine. You can also allocate by percentage.

New Jersey residents are taxed on income earned anywhere so your will report all your income. You can claim a tax credit on the NJ return for the double-taxed $9,000 and tax paid to NY on that amount.

E

ErnieS0Answer

New York requires employers to report total wages in W-2 Box 16. However if your employer said you made $9,000 in New York then you can allocate your wages in the New York section.

Your NY income may not match what your employer is reporting if you are allocating by days. That's fine. You can also allocate by percentage.

New Jersey residents are taxed on income earned anywhere so your will report all your income. You can claim a tax credit on the NJ return for the double-taxed $9,000 and tax paid to NY on that amount.

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K

krish1Author

Thanks. Are you saying that there is a way to enter the actual NY amount (instead of a percentage of gross amount) ? If so, how do I do it in TT.

As mentioned above, my employer mentioned a flat NY amount, instead of a % or number of days. But since I did not find a way to enter the actual NY amount in TT, I resorted to calculating and using %

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RaifH

You can enter the exact NY amount by changing the Box 16 amount for NY to the amount your employer reported as the correct NY amount. You may also allocate by the number of days or a calculated percentage of the total amount using the allocation screens in the NY nonresident return. If it is a few dollars off, that is fine, as long as all your income is being taxed by your resident state, which we are assuming is NJ.

If your employer has your entire wages as the Box 16 amount for both NY and NJ as it appears they do from your original post, make sure that when you are doing your NJ return, you only report these wages once. You do this on the screen that says Let's Confirm Your Taxable State Wages. Remove the NY wages. The NJ wages remaining should be at least as much as the federal wages reported in Box 1, possibly more as NJ does not allow deductions for contributions to a retirement account. If you do not remove the NY wages, they will be double-counted on the NJ return.