[MqlAsk]

My daughter is a full-time college student in NY. She worked last summer. She got two W-2 Forms, one from NY, and one from NJ. The box 1 wage in W-2 is $12800. Box 16 state wages is $12800 and Box 17 income tax $360 in NJ. But box 16 state wages is still $12800 and Box 17 income tax 0 in NY.
That means the w2 state wages total is two times greater than federal wage. If she is going to file these two state tax return using corresponding state wages, she has to pay two times more state tax! What should we do?

Thank you for your response.

[ebaines]

I assume that your daughter is a NY resident who took a job in NJ over the summer as a non-resident of NJ (she commuted to her NJ job from NY). She files a non-rsident tax return with NJ, reporting the $12.8K income, and pays tax to NJ accordingy. Then she completes a NY State resident return, reports the $12.8K in income, calculate the preliminary tax on that, and then takes the credit for taxes paid to other jurisdictions (namely, NJ). Result is that she may owe an amount to NY, assuming NY's tax rate is a bit higher than NJ's.

[MqlAsk]

I assume that your daughter is a NY resident who took a job in NJ over the summer as a non-resident of NJ (she commuted to her NJ job from NY). She files a non-rsident tax return with NJ, reporting the $12.8K income, and pays tax to NJ accordingy. Then she completes a NY State resident return, reports the $12.8K in income, calculate the preliminary tax on that, and then takes the credit for taxes paid to other jurisdictions (namely, NJ). End result is that she may owe an amount to NY, assuming NY's tax rate is a bit higher than NJ's.

Thank you for your opinion. Actually she is Texas resident. Her college is in NY. You said “Then she completes a NY State resident return, reports the $12.8K in income, calculate the preliminary tax on that, and then takes the credit for taxes paid to other jurisdictions (namely, NJ).”
How to take the credit for taxes paid to NJ when I report NY state return? Why the total $12.8K income were reported to two states?

[ebaines]

Please clarify:

1. Where was the job - in NJ?
2. Where was she living while working - in NY? If so, NY and her employer consider her to have been a NY resident.

To answer your question - she takes the credit for taxes paid to other jursidictions by completing form IT-112-R and attaching it to her NY tax return (form IT-201).

[MqlAsk]

Please clarify:

1. Where was the job - in NJ?
2. Where was she living while working - in NY? If so, NY and her employer consider her to have been a NY resident.

To answer your question - she takes the credit for taxes paid to other jursidictions by completing form IT-112-R and attaching it to her NY tax return (form IT-201).

Thank you so much.
Her Job was in NJ.
She was living in NY while working.

I’m using TurboTax to file tax return. I’ll try to find if there are Form IT-112-R and IT-201 in TurboTax.

[ebaines]

It seems that you daughter told her NJ employer that she was a NY resident. Hence the employer issued a W2 that reflects that status. TurboTax should be able to handle this OK. as long as you tell the program that your daughter is an NY resident. You will have to get both the NJ and NY state modules to mak ths work. I assume she lives in an apartment in NY State - does this happen to be I neither NYC or Yonkers, because if so she's going to have an NYC/Yonkers resident tax issue as well.

It may be possible to argue that your daughter is actualkly still a TX resident temporarily living in NY as a college student, but this could get a bit sticky, given that her employer has already issued a W2 that says otherwise.