Question

Worked in NY, Lived in NJ but employer had NY address all year

Forum|Forum|3 years ago
April 12, 2023
1 reply
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I worked in NYC and lived in NJ, however I moved Jan 1st to NJ and I forgot to update my address with my employer. Before I moved, I lived in NY so that was the address my employer had on file. I finally realized in October that I never updated my address and submitted the change - so on my W-2 my NY one shows my full income and the NJ one shows a fraction of it (what I earned between Oct-Dec).

I know I should file non-resident for NY, and full resident for NJ. But how do i report the income? Should I be putting 0 income for NY state return? and the full income for NJ? And how do I handle the page where it asks me to remove duplicate wages? I believe I'd normally remove NY but remember in my case the NY wage is correct amount for the full year and NJ is just a 1/4th of it.

AmyC

Employee

1, 2 & 3. Report the income:

Since you worked in NYC, you will need to file a NY return and claim NY wages.

File the NJ as full year resident, since you were, and NJ will give you some tax relief for the NY burden.

Do the NY return first. Here is how NY return works:

The Federal AGI is used as a denominator and the NY only income as the numerator to calculate the percentage of income earned in NY. on line 45.
NY determines the tax on your entire federal income, line 37, then multiplies the tax times the percentage just determined to create your actual tax on line 50.
Tax withheld on line 62

Then prepare your resident state NJ return and it will generate a credit for your income already being taxed in the non-resident state. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state, if they have a higher tax rate along with differences in how the taxable income is calculated.

4. Duplicate wages:

NJ will tax your full income for the year. Double check that the income is not counting full year plus part year on w2s. This may be your duplicate wage issue or it could be the employer EIN. You should have one w2 entered with 2 state lines entered, one NY and one NJ with wages and taxes as appropriate.

Actually, you don't need to enter NJ at all since it is your resident state. You can delete the NJ wages completely- if needed - and enter the NJ taxes paid following my instructions here.

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