I just got a notice from NJ saying I owe back taxes since I did not capture the correct NY "taxable income" in completing my NJ 1040 Schedule A. I used my NY taxable income from the NY IT-203, but NJ says I should have used my NY AGI income which is lower than the NY taxable income. Is that right? I used the wage allocation table for the NY AGI which deducts for weekends, holidays, vacations, business trips, etc.
:confused::mad:

You can use the allocation method ONLY IF your income is not clearly delineated on your W-2.

HOW is the income shown on the W-2? All NJ? All NY? Or split between the two states?