Question

Multiple W2 Forms from Two States-Filing Issues

Forum|Forum|1 year ago
January 16, 2025
2 replies
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Hi, we moved to NJ from NY in March 2024. I just received two W2 forms from the same employer, which makes sense (two states). There is one issue I don't understand, the total combined state wages are much higher that total Federal Wages (Box1). For example if Box 1 on both W2 forms is 120,000 and the State A (NY) is also 120,000 (although actual wages for 2 months should be let's say 30,000), State B wages on second W2 form (NJ) are 90,000, the total Box 1 also 120,000. Shouldn't the total state wages equal total wages Box 1? Am I being double taxed here and how should I input this data in TurboTax? I normally use W2 import, but I'm afraid it's going to make a mess. To make things worse there was an employer change in December 2024, so I'm expecting another set of W2 forms and there is also NYC (local) tax involved.

I'm also afraid that if I showed on my NY tax return that my wages were 120,000 and I paid only tax on 30,000 NY wages, they'd go ape and tell me to pay estimated taxes and penalty.

Any help will be appreciated.

AmyC

1. No. NY and NJ have different laws for calculating wages.

2. Yes, do not import. The w2 forms went to the IRS and to the states. You will input on the w2 screen, the state section to show what was actually earned in which state. It sounds like NY $30,000 and NJ $90,000 might be your input.

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ParkNYCAuthor

Thank you both @AmyC @TomD8.

Should I use payroll payslips to accurately calculate earnings and taxes for each month?

As i said, we moved to NJ in March, so according to this we should only pay NY taxes for January and February and rest for NJ. Unfortunately, the idiotic company didn't change this until July, so my wife paid NY taxes until end of June. Should we put NY earning for January and February only according to residency (W2 form for NY) or from January to July according to what the company did. I know they made a mistake charging my wife NY taxes for 6 months, but it's too late to argue with them. Please advise.

Also, isn't this going to cause problems when we'll file NY IT-203 form showing different earnings that on filed W2 forms?

Thank you

T

TomD8

After your move to NJ, did you or your wife continue to work for a New York employer? If so, did you work in NY, or remotely from NJ?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

T

TomD8

@ParkNYC --

New York has a rule for part-year residents who perform only part of their services in New York State. In such cases, New York requires that the amount in Box 1 of the employee's W-2 match the New York state wages shown in Box 16. See page 3 of this New York tax memorandum:

https://www.tax.ny.gov/pdf/memos/income/m02_3i.pdf

It's then up to the employee to allocate the income appropriately on his or her part-year resident NY tax return.

I can tell you that this quirk of New Yok law causes numerous similar questions to this forum.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.