I work for a company based in NY, who pay my salary into a US bank account.
I live in Japan, and all my work is done remotely from Japan.
The address in my company HR records is a PO Box in New Jersey. However, I have never been to NJ, and certainly none of my work is performed there. The company knows all this.
On the W2 form for 2020, my employer put NJ in box 15, and and my total salary amount in box 16. I’m trying to persuade them not to do this on my 2021 W2, because it makes my tax accountant (and me) nervous.
So, I have two questions:
- What is the formal legal definition of box 16? I have seen various fuzzy ones, and I’m looking for something authoritative.
- Should I just ignore this? I’m not subject to NJ taxes, AFAIK, no NJ taxes are withheld from my salary, and I don’t file NJ tax returns.
There are other questions about non-resident tax liability. My question is different, I think. I’m pretty sure my salary is not subject to NJ taxes, but I’m worried that box 16 on my W2 seems to suggest otherwise. The question is more about the meaning of boxes on the W2, rather than tax liability.
When I started working for the company a few years ago, I read the NJ tax rules, concluded that I am not subject to NJ income tax, and I said so on some form I filled out. As a result of this, I was able to convince my company not to withhold NJ taxes. I’m a US citizen, and so (of course) I pay US federal taxes.