What to do if my employer refuses to supply a corrected W-2

Forum|Forum|3 years ago
November 10, 2022
9 replies
43 views

This is for my 2021 W-2. I recently received a tax notification saying I owe tax to IL. My job location was in OK but I worked remotely in IL for entire 2021. My employer reported my income from the company to both states on my W-2. Thus, I was double taxed. When I filed the state taxes, I filed as a residency of IL and put the tax amount to OK as "credit paid to another state" in IL's tax file. But now I was told based on the taxable income for IL on W-2, I cannot take the "credit to another state" and should pay the full amount. I contact my employer to explain that I lived in IL for entire 2021, so my state of residency is IL, and I pay tax to IL. As OK does not use the Convenience of Employer rule, I don’t owe tax to OK. Thus, the taxable income on W-2 for OK should be 0, and I only owe tax for IL. But they refuse to correct the W-2 because they claimed that my work location was OK and it was me chose to work in another state and they tax employees based on their job location on paper. What should I do? Contact IRS?

Not A Product Question

Critter-3

Level 15

Ok ... if they withheld any OK taxes then you will file a non resident OK return to get it back since none of the income belongs to OK.

Then all the income is taxed to IL and since you owed nothing to OK you cannot get a credit for any taxes paid to OK since you paid none. In the TT program you should have completed the OK return first then the IL return so the proper credit would have been calculated which in your case it is nothing.

jojo221Author

Level 2

Thanks! But the problem is that I already completed the tax file for both states. How should I correct the one for OK? I filed IL state tax as resident and OK as non-resident.

TomD8

Alumni - Champ

You worked in Illinois all of 2021, but is Illinois your permanent, primary home (your domicile in tax terminology), or were you in Illinois temporarily while maintaining your domicile in Oklahoma or some other state?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

jojo221Author

Level 2

IL is my permanent state as I filed the tax with the residency of state in IL

TomD8

Alumni - Champ

Since you lived in Illinois all year, you were correct to file your Illinois return as a resident. But is Illinois your main, permanent home, or do you have a home in another state?

The issue is this: even though you lived in Illinois all year, if you were there temporarily while your main home was in Oklahoma, then your income would be taxable by both states. That's why I'm asking.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.