By law, a New York employer is required to report on an employee's W-2 the same amount in Box 16 as in Box 1, regardless of the portion of the wages actually earned in New York. Thus, a W-2 from a New York employer might list state withholding information for New York and New Jersey showing the same amount in Box 16 as the state wages for each state, both equaling Box 1.
In TaxSlayer Pro, when completing a tax return for a New Jersey resident who works in New York, enter the state information in the W-2 entry window as follows:
- New York - Enter only the amount that is taxable to New York.
- New Jersey - Enter the difference between Box 1 and the total of other state Box 16 amounts.
Since New Jersey is the resident state, the entire taxable income on the W-2 will pull to the New Jersey tax return. The New York nonresident tax return, and any other state nonresident returns, will pull only the information for that state.