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My office is in NJ and I live in NY. But I worked from home in NY most of 2020 due to the pandemic. Should I allocate my NJ wages to NY?

Forum|Forum|5 years ago
April 12, 2021
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I usually work in NJ and live in NY. Due to the pandemic, I have not worked in my NJ office since March of 2020.

When I do my NJ taxes, in my NJ Income Allocations, should I allocate most of my NJ wages to NY (say 70% NY wages/30% NJ wages) ?

Best answer by DMarkM1

Not quite. NY is your resident state. There is no allocation involved there. You are taxed by NY on all income from all sources by your resident state. The non-resident state in this case NJ is where you get to allocate and in your circumstance that would be 100% of your wages allocate to NJ and then you get a credit on your NY return for the taxes paid to NJ to mitigate the double taxation on those wages.

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MAK70

Yes, you can allocate based on where you did the work.

New Jersey sourcing rules dictate that income is sourced based on where the service or employment is performed based on a day’s method of allocation. However, during the temporary period of COVID-19 pandemic, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction.

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WBM3

I live in TX and work for a NJ employer. Since I did all my work outside of NJ, do I have any NJ earnings?

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TomD8

the main office is in NY but I never stepped foot in NY I work in NJ office. Why do I have to pay taxes to both?

@Dfeliciano1972 --

If you're a full-year non-resident of New Yok, and you never physically worked in New York during the tax year, not even for a single day, then you have no income tax obligation to the state of New York.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.