NY Jets employee; NJ and NY state taxes

[Ross]

I have been preparing a few NFL employees income tax returns for several years. Every state they play in, they get a W2 for that state from their employer. My client has eight different state returns for 2022. He lives in NJ. In 2022 he received W2s for both NY and NJ.

The state wages for both of these states were approx. equal to his Federal wages in box 1. I will use these fictitious figures; W2 wages are $1 million for Federal taxes, $1 million for NJ wages and $1 million for NY. His NJ state withholdings are $100k and his NY withholdings are only $1,000.

On his NJ return you can take a credit for tax paid to other states and I understand I need to compute the NY return first. When I do this, his NJ refund is $100k and his NY balance due is $100k. There doesn’t seem to be a “credit for taxes paid to another state” form for NY non-residents. I found form IT-112-R online, but it doesn’t seem to apply to a non-resident and is not included in my TaxAct Professional software.

Will he have to pay NY $100k and get a $100k refund from NJ? Any help on this would be appreciated. TIA.

[TAXNJ]

Does this prior post help?

https://forum.thetaxbook.com/forum/d...es?view=thread

[Uncle Sam]

I know -0- about professional athletes tax issues.
I am aware of the fact that years ago the Boston (either the Celtics or Bruins) were audited by IRS and out of the publicity disclosed after audit results, it was disclosed that there's an allocation of days worked in each state to allocate provided by the employer based on that state's law on allocations (at least at that time, may have been changed).
For the NY return, there's a Schedule B for IT-203 for your client to complete, to allocate the number of days actually worked in NY to prorate the taxable income.
All of the non-NJ states tax credits should flow through to the NJ resident return. I know it exists because years ago I had a NJ resident client that had an employer who had him work in multiple states
in the same tax year. and all of the other states' tax credits flowed through on the NJ return.

[New York Enrolled Agent]

TSB-M-02(3)I 5/02):Employer Requirements Concerning the Reporting of New York State, City of New York, and City of Yonkers Wages Beginning with Tax Year 2003

This instructs employers how to report on W-2

Uncle gave you direction how to report on IT-203. Why don't you take his direction and review what he suggested in the post today and in your earlier post? It seems to me when someone gives you a direction you should check it out.

[Ross]

Thanks to all! I forgot I had that same issue 10 years ago!