Hello JA Customer,
If you physically work in the state of NJ, then the income you receive from your employer is taxable in that state. Occasional travel to other states or overseas, or occasional meetings that you attend in another state, are not taxable in the states that you travel to.
If you were for some reason to be temporarily assigned to work for 2 or 3 months out of the NY office, then the income you received during that time period would be taxable in the state of NY. But occasional office visits to a branch in another state or occasional travel to different states is not taxed in each state on a day to day basis.
When you file your tax return at the end of the year, you will file a return with the state of NJ as a non resident, and you will report all of your income from this employer. You will also file a resident return with the state of NY since that is where you live, and that return will include all of your income from all sources. But NY will then allow you a credit for the taxes already paid to NJ, so you are not double taxed at the state level on the income from NJ.
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Thank you JA Customer
Hello again Tom,
This is a somewhat unusual position that the state of NY is taking in comparison to other states. Take an example where a salesman works for a company based in Chicago, but his territory covers the entire midwest, so he may travel to as many as 20 different states during the year to call on his clients. According to New York's method, he would have to file 20 different tax returns at the end of the year which is ludicrous.
Unfortunately even if the state is insisting that this is not NJ income, unless your employer is willing to change your W-2 form and allocate your income between the various states, that would be the only way that NJ allows you to make an adjustment and not claim this as NJ income.
I can only suggest that you present your situation to your employer and see if under the circumstances he is not willing to breakdown your W-2 to show income based on the actual states you traveled to.
If this was helpful please press the Accept button.
Thank you Tom