I'm reviewing a past 1040 for one of my new clients who lives in New Jersey. She filed a multi-state return for the year in question as she had income sourced from New York. She brought in her W-2s and for the W-2 issued for the state of New York, it shows an identical amount of wages in Box 1 and Box 16.

However, the employer generated a separate W-2 for the state of New Jersey, and in Box 16 (State wages, tips, etc.), it shows a dollar amount approx half of what shows in Box 1. (By the way, what shows in Box 1 in the New Jersey W-2 is the same amount as what shows in Box 1 and Box 16 of the New York W-2.)

Does anyone have a guess as to why the employer would issue a W-2 statement for New Jersey wherein Box 16 is so different in amount from Box 1? Not to mention so different from what shows in both boxes on the New York W-2. Again, the client is/was a full-time resident of New Jersey.