W2-forum incorrect (or) CPA does not know the law

The name of my state New Jersey.

I worked for NY and NJ states for same employer, for different periods. For Ex: worked for NY for first 3 months and for NJ for the rest of the time in the year. I got the W2 forms for the two states. Both of them reflect the same total income for the entire one year.

The CPA says, the amount needs to be divided for the two states, so the taxes will be prepared for those two different amounts. Otherwise we will be paying the taxes for both states for entire one year period. The CPA has to go with the amounts shown in the W2.

The employer says, that is how the amount will be shown for the entire year on w2 forms for both states. The CPA has to work on it for actual figures.

So I am wondering, who is correct and what should I do?

Please advise me.

If your employer won't correct this, ask your state labor department what other options you might have. It's hard to know without looking at the W2 form whether employer's contention is correct or not. Or maybe someone at the state income tax office or federal income tax office (www.irs.gov website) can answer this question for you.

i've seen this many times w/NY-NJ employees & employers & am very familiar with what you describe.

a very common presentation. i suspect it's not two w-2's, simply the same w-2 showing NY income wages & the other w-2 showing NJ income wages, though both show the same fed taxable wages. think of it as page 1 & page 2 of the same w-2.

anyway, you state that you live in new jersey. all of the w-2 income will be reportable in NJ. only the NY portion will be reported on a non-resident NY return. you will get a credit on your NJ t/r for taxes paid on the NY income.

that's the quick & dirty of it.

Agreed.

If you are still concerned about it, in a couple of months you can get a transcript from the IRS showing what was reported to them. It will show whether it was reported once or twice.

Snipes