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Level 1
May 3, 2020
Question

Why full year New Jersey resident working for NJ company pay tax to New York?

  • May 3, 2020
  • 1 reply
  • 11 views
Client is a New Jersey resident working for a New Jersey company, but during 2019 he lived in New York for two weeks for a surgery, for that reason the company HR changed his payroll to NY for those two weeks. He has W-2 from both NJ and NY, with NJ one having the majority of state withholding and NY has only fraction.
When prepare his return with Intuit Proconnect, the client was set up as a full year NJ resident and Nonresident/Part-year NY resident, and W-2 information were entered as they should be. But the return as prepared shows that he has to pay most tax to NY and get credit from NJ. Should it be the opposite since the income source is from NJ? Did I miss something when use the software?
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1 reply

itonewbie
Level 15
May 3, 2020

1) Did your client telecommute from NY during those 2 weeks?  If not, there should be no NY-source compensation and a W-2C should be issued.

2) Sounds like it's a problem with how the return was coded for NJ and NY.  You may like to check all your input again and refer to the following articles for reference:

https://proconnect.intuit.com/community/help-articles/help/how-to-create-a-multi-state-return/00/4715

https://proconnect.intuit.com/community/help-articles/help/input-multi-state-amounts-in-proconnect-tax-online/00/5262

https://proconnect.intuit.com/community/help-articles/help/entering-w-2-wages-and-withholdings-on-multi-state-returns/00/5054

https://proconnect.intuit.com/community/help-articles/help/how-to-enter-part-year-or-nonresident-states/00/5231

---------------------------------------------------------------------------------Still an AllStar
Level 3
February 23, 2022

I have a client that lived in New Jersey until sept. 2021.  His only source of income is a w-2 from a new york company and has ny taxes withheld. Prior to 2021 he filed a non resident NY return and a NJ resident return taking credit for the taxes paid to NY on his NJ return.  Since he moved to Florida in September 2021, only has NY income, I think he does not need to file a New Jersey tax return.  

I'm I correct?

sjrcpa
Level 15
February 23, 2022

He needs to file a part year NJ return because he lived in NJ for part of the year.

The more I know the more I don’t know.