Amending return with W2-C

[tehshlendo]

I have a somewhat unique combination of errors in my tax filling.

When I originally filed my 2022 return I did not realize that my employer had my state down as WI when I actually live and work in PA.   As a result I filed with the state showing as PA despite my employer withholding for WI. I have only recently gotten my W2 corrected by my employer.  Now that I have my W2-C I'm struggling to determine how to enter this information to have all the information correct after the fact.  Technically speaking the withholding amounts are only slightly off on paper, but I imagine PA would not have received any of what my employer withheld for WI.

Since that's the case should I just be zeroing out my PA state taxes to 0 so I owe the proper amount?  Additionally in order to get a return from WI for the incorrectly withheld taxes do I need to add a W2 showing no tax obligation to WI?  I'm not understanding how to properly report this information to the two states

[Anonymous_]

@Mike9241 

[Mike9241]

in this case you'll need to file an amended return in your home state reporting the wages and if the w-2c shows no PA w/h you'll need to pay. you also you need to file a nonresident amended return with WI to get the withholding back. do not be surprised if PA bills you for penalty and interest for any unpaid amount. this would be a discussion with your employer, but it may argue that you should have noticed the w/h was for the wrong state.  

[tehshlendo]

@Mike9241 

Ok, in my case the W-2C does show an amount withheld.  Not sure if that means my employer did actually withhold and send that tax obligation.  But that aside then, if I understand correctly, I should just amend the state return, changing my existing W-2 information to match the new information on my W-2C, right?

Just want to make sure I'm understanding this accurately

[Mike9241]

on box es15 of the w-2c there's either one or both states listed (Wi and/or Pa)  and in box 17 there is the w/h for that state. 

what was in box 15 of original w-2? was there w/h in box 17 don't need the amount 

what is in box (es) 15 of w-2c and is there an amount in box(es) 17 if both states is Wi showing zero. for box 17

 from your original post it appears you filed a WI return and reported the w/h as shown on the original w-2, you did not mention whether you filed a PA return which as your resident state was required.

if this is correct the w-2c should show 0 WI wages but the amount WI w/h.  if I'm correct you need to file an amended nonresident WI return to get back the w/h

 the w-2c should show PA wages   don't know if it is showing PA w/h that is different from the original w-2. if so you need to file an amended PA resident return, 

[tehshlendo]

@Mike9241 

To clarify, my original W2 has WI in box 15 and does have a value in box 17, however in my filing I had put down PA instead of WI.  That was my own error. But my employer also should not have had WI as my state as I've always worked from PA. (Also not trying to justify my mistake, I definitely didn't intend on having the incorrect state based on my W2)

I have received two W2-C's.  The Previously Reported box 15 shows PA with box 17 at 0.00. The Correct Information side has PA on box 15 and does have an amount for box 17

On a second W2-C, the Previously Reported box 15 shows WI with an amount in box 17.  The Correct Information side box 15 shows WI and has no amount for box 17.

So the main concern I have is that the two mistakes (Mine and my employer's separately) means what I previously report isn't far off from my actual obligation but I don't think PA actually received withheld money from my employer.

[RishiG]

Hi @tehshlendo, 

I am so sorry that you have to go through this complex situation. Currently I am facing the same issue as you.

I live in PA.. But my employer had withheld GA state taxes instead of PA.  I have never resided in GA. 

In my W2 form Box 15 has GA, and Box 17 has GA with held amount. But where as in the address column in my W2, it says PA as my residence. 

After many continuous follow-up calls later, my employer has finally filed for a corrected W2C form. 

But as its already 05th April 2024, and deadline is on 15th April 2024, I am not sure if I will be receiving the corrected W2C form before the deadline.

I am so confused what should I do? Should I file the tax returns with my existing W2 and once I receive W2C, then I should file a Amended Tax Returns.

Or

Should I go for extension till 15th Oct 2024? Though if i go for extension, I have to pay my PA taxes (which I owe) before 15th April 2024.

I am so confused. Can you kindly guide me, on what have you done with your situation in 2022 tax filing.

Thank you.

CC: @Mike9241 

[MonikaK1]

If you won't have the corrected W-2 in time to file on April 15th, you have the option to file an extension and pay the amount you expect to owe. Because the W-2 you have incorrectly reports wages and withholding for the wrong state, this may be the best option.

From the Pennsylvania Department of Revenue:

If a taxpayer owes income tax with a PA tax return, he/she must pay the tax liability and request an extension of time to file.

• Taxpayers may pay by check, electronic funds transfer or credit/debit card. Visit myPATH to pay and submit a request for extension of time to file electronically. Note electronic processing may not be available to first-time PA filers.
• If a taxpayer remits payment by check, he/she must also submit to the Department Form 276, Application for Extension of Time to File.

You can also prepare and file Form 276 electronically with TurboTax. See this help article for more information about extensions.

[RishiG]

Thank you @MonikaK1