If you live in New Jersey and work in a different state, please use the information below to help report your W-2.
How do I report the other state's portion of my W-2
When you are filling out your return, the amount that you enter in Box 16 for the other state should represent the amount of your income that is taxable to that state. Because of this, the amount you enter in Box 16 may not match exactly what is listed on the hard copy of your W-2. Your entry in Box 16 (other state) should list the amount of wages that are taxable to that state.
How do I report the New Jersey portion of my W-2?
The amount your employer enters on your W-2 in Box 16 for New Jersey may contain amounts that are actually taxable to the other state.
For example, if you live in New Jersey but work in New York, you may have two (2) box 16 amounts (one for New York and one for New Jersey), and the New Jersey amount may contain income that is actually taxable to New York. In fact, the one for New Jersey may even be slightly higher than the one for New York.
Your entry in Box 16 for NJ may need to be edited. The entry should be for the difference between the amounts in Box 1 and Box 16. Not the full amount that was earned in the other state. This is because all income is taxable on the resident state return, so NJ will pull the other states' box 16 income anyway.
Once you have edited the New Jersey entry on the W-2, you can view the NJ return to ensure the income being taxed is accurate.