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Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

Residents

The amount of wages that is reported on Form NJ-1040 for a New Jersey resident is the sum of all Form W2, Box 16 state wages that you enter on the federal W2 screen with a NJ state postal code, plus other income on Form W2, Box 14 that has code 22. The application will ignore all other state wages with postal code other than NJ (i.e. NY, CT, etc.,) for NJ purposes.

If a New Jersey resident works for an out-of-state employer and that employer does not report or withhold NJ wages, the W2 may only include the out-of-state postal code and the Box 16 wages are not adjusted for NJ. When a NJ postal code does not exist on the federal W2 screen, the application will add the wages in Box 1 and amounts in Box 14 - Other that have Code 22 to report as NJ wages on Form NJ-1040. 

If you need to adjust the state wages in box 16, use the Other statement in Box 14 and code 22 to enter the adjustment. The adjustment may increase or decrease the wages already coded to New Jersey. If no state wages in box 16 are coded to NJ due to data entry limitations from preparing other state returns, the amounts you enter in Box 14 with code 22 will be the New Jersey wages. Code 22 amounts will transfer to the Adjustment to federal W2 box 16 New Jersey wages for incorrect w2 field on the NJW2 screen in the Income & Adjustments folder.

Part-year and nonresidents

The amount of gross income from wages, salaries, tips and other compensation on Form NJ-1040NR, line 14 (column A) is the sum of Form W2, Box 1 wages and Box 14 other income. 

The wages from New Jersey sources (line 14, column B) for a New Jersey part-year or nonresident is the combination of only Form W2, Box 16 state wages fields with a NJ postal code and Box 14 other income that has a code 23.

If you need to adjust the state wages in box 16, use the Other statement in Box 14 and code 23 to enter the adjustment. The adjustment may increase or decrease the wages already coded to New Jersey. If no state wages in box 16 are coded to NJ due to data entry limitations from preparing other state returns, the amounts you enter in Box 14 with code 23 will be the New Jersey wages. Code 23 amounts will transfer to the Adjustment to federal W2 box 16 New Jersey wages for incorrect w2 field on the NJW2 screen in the Income & Adjustments folder.

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