Legal Question in Tax Law in New Jersey

Moved from NY to NJ- Why does NJ W-2 reports ALL income as NY income?

Hello. I moved to NJ in 2005, in connection with a new job here. But I started working in this NJ company, while I was still living in NY, and worked from NY, for six weeks.

My understanding was that, my NY Wages from this NJ company should be only for the time I worked from NY, before I moved to NJ. But the NJ company's W-2 reports ALL of my income in NY Wages! Is this a mistake by the accountants, OR is this how NJ law stipulates? Shouldn't my NY Wages report only the wages for the six weeks before my move to NJ ? Please help! Thanks so much.


Asked on 1/31/06, 12:05 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Moved from NY to NJ- Why does NJ W-2 reports ALL income as NY income?

This should be corrected for 2006, if you are working and living in NJ. I would not worry about how it was reported for 2005, as this will work out when you do your tax returns. It appears to me that you will be filing 2 part residence returns; one for NY for the period of time you lived there, and one for NJ for the remainder of the year. Both retrurns allow you to allocate income to the respective state of residence, only for the time you lived there. The NJ return will allow a credit for taxes paid to NY while you were a NJ resident. This will reduce your potential NJ taxes, but probably not dollar for dollar due to the formula used. I believe you will probably wind up with a refund in NY and a small tax due NJ. Talk to the payroll department about making the change since you now work and live in NJ. If you need help in preparing your 2005 returns, contact me directly.

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Answered on 1/31/06, 11:10 am


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