I found out my 2020 W-2 withholding was for the wrong state. My company can not reissue an updated W-2. Can I manually make the change on withholding and re-file?

[hungry4eva]

Is there a service that can help me with this?

[VolvoGirl]

If they took out withholding for the wrong state you have to file a non resident state return for that state to get it back.  You will probably owe tax to the right state.  

[hungry4eva]

Ran out of characters.. I lived in the state for about 2-3 weeks before moving. We had to pay taxes to the correct state in 2020 but did not get the return from the other state. Do I still file non-resident? Do I need to file something to show I didn’t get an updated W-2?

[rjs]

You have to file a part-year resident tax return for the state that you moved out of. You do not have to say anything about your W-2. The W-2 correctly shows the tax that was withheld. The employer sent that tax to the state for which it was withheld. There is nothing that needs to be updated on the W-2. It doesn't matter if the tax was withheld for that state was more than it should have been. The W-2 shows the amount that was actually withheld. You get the excess back by filing the part-year resident tax return, not by changing the W-2.

If you have further questions, please tell us what states you lived in, what states you worked in, and what states tax was withheld for.

[Mike9241]

the w-2 should be corrected to report the wages paid to you for the 2-3 weeks you lived in the first state but no change in withholding 

and the wages paid to you after you moved to the other state - no withholding since none was taken 

while it may not be able to change the withholding, it should be able to issue a w-2 correcting the wages.

you can not change the withholding.   

the proper thing it would seem is to file a part-year return for the first state (reporting the wages paid, if any, for any work performed there). it would be an amended return if you have filed an original return.  there is no way to know if the state will accept the return without the corrected w-2 

if the state wants a corrected W-2  but the company won't issue it, it would seem your only recourse would be a lawyer which might cost you more than what your refund would be 

[rjs]

If the state that you moved out of happens to be New York, the wages on the W-2 do not have to be corrected. Box 16 is equal to box 1, no matter how much you actually earned in the state. You show on your state tax return the amount of wages that you actually earned in the state. I don't know if there are other states where you could correct the wages on the tax return. Every state has different rules. So again, what states did you live in, what states did you work in, and what states were tax withheld for?

[rjs]

Also, did you at any time live in one state and work in a different state? In most such situations, but not all, tax should be withheld for the state that you worked in, not the state that you lived in. The state wages shown on your W-2 are based on the state that you worked in, not the state that you lived in. When you moved out of your first state, did you continue working in that state?

You have not really given us enough detail to properly evaluate your situation.