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New Member
posted Jun 3, 2019 1:01:24 PM

My employer sent my state taxes to the wrong state for 2015. How do I file for the correct state?

We moved to Montana from Colorado for a relocation within my company in December of 2014.  The HR department/payroll didn't change my state tax withholding's to Montana and subsequently withheld taxes for Colorado for the entirety of 2015.  How do I file my state taxes for the correct state "Montana" from a IRS perspective, as well as from a turbo tax perspective?  I tried to obtain a corrected W2 however my company said that after the taxes have already been reported they can not  send out a new W2.

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1 Best answer
Intuit Alumni
Jun 3, 2019 1:01:25 PM

State Impact

You will have to file a nonresident Colorado state tax return to get back the taxes your employer withheld for CO. 

Be sure to prepare your nonresident state return (CO) first.  That way, the taxes paid to CO will flow correctly to the MT return in order to generate a credit for taxes paid to another state.

Federal Impact

On your federal return, it doesn't matter which state collected the taxes.  If you itemize deductions, the withholding for both states will flow to Schedule A from your W-2s.




4 Replies
Intuit Alumni
Jun 3, 2019 1:01:25 PM

State Impact

You will have to file a nonresident Colorado state tax return to get back the taxes your employer withheld for CO. 

Be sure to prepare your nonresident state return (CO) first.  That way, the taxes paid to CO will flow correctly to the MT return in order to generate a credit for taxes paid to another state.

Federal Impact

On your federal return, it doesn't matter which state collected the taxes.  If you itemize deductions, the withholding for both states will flow to Schedule A from your W-2s.




New Member
Jun 3, 2019 1:01:28 PM

I appreciate the Feedback.  I have filled out the non resident tax return for Colorado, and have moved on to Montana.  Is there something I have to do to have the taxes paid to CO flow to the amount owed now to MT?  It still shows a huge amount owed with no deduction from the refund from CO?

Intuit Alumni
Jun 3, 2019 1:01:29 PM

I posted my response below.

Intuit Alumni
Jun 3, 2019 1:01:31 PM

UPDATED FOR TAX YEAR 2019

 

It may be that CO is not calculating a tax.  Check the Tax Summary to see if CO is imposing taxes on you or if they are refunding the entire amount of withholding. 

 

If you are using TurboTax Online, you can view the tax summary and preview your 1040 using these steps:

  1. While in your return, click Tax Tools > Tools (in the black bar on the left of your screen). 
  2. In the Tools Center window, click View Tax Summary.
  3. In the black bar you can select Preview my 1040, as well as your state Tax Summary.

 

If the line in the tax summary for CO tax is NOT zero, follow these steps to calculate a credit in the MT return:

  1. Go back into your MT return.
  2. Continue through the screens until you reach Montana Credit for Taxes Paid in Another State.  Click on the Yes box. 
  3. Enter your total income in the first two boxes and then the tax paid to CO (from the Tax Summary) in the third.
  4. TurboTax will then calculate the credit.

If you still have a balance due to MT, you can file now and schedule your payment for any time up to July 15, 2020.* This will give you time to get your money from CO.

 

*Governor Steve Bullock extended the payment and filing deadlines for 2019 individual income taxpayers to July 15, 2020 in accordance with the new federal filing deadline.

 

 

[Edited | 4/15/2020 | 7:25am PDT]