Wrong automatic entry on the state withheld

Forum|Forum|3 years ago
March 23, 2023
2 replies
14 views

I live in New York state but get W-2 income from Maryland. When I scan the W-2 for the federal tax, the turbo tax entered the state withheld as New York, rather than Maryland.

When I working on the state of Maryland in the Turbo Tax, I able to manually change the state withheld on the form 505 (nonresident), However, when I working on the New York State at the Turbo Tax I am not able to change the amount into zero. Please help. Thank you

AmyC

Level 15

You need to correct the w2 in the federal section to show MD as the state with taxes and income. Go back to federal income, edit your w2. You should only show one line on your w2 for the state section, MD. The program will pull all income into NY automatically.

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pajakdwiinaAuthor

Level 2

I work remotely from New York, and my W2 is from Maryland. Box #15 should be NY or MD? and Box# 17 is belong to which state?

VolvoGirl

Level 15

What state is in box 15 on the actual W2? If you're not sure ask your employer.

pajakdwiinaAuthor

Level 2

I hope this will not confuse you any further.

Since you are a resident of NY and a non-resident of MD. In order to get the proper credit you should complete the non-resident MD return before you do your home state NY return so that the credit flows properly. Since you are a resident of NY, ALL your income is taxable by NY, regardless of where you earned it. So you must file a NY tax return.

You won't be double-taxed, because NY will give you a credit for the taxes you pay to MD.

In the personal info section of TurboTax, enter NY as your State of Residence, and indicate that you had Other State Income from MD.

Steps:

With your return open, select My Info in the left-hand menu.
Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
At Did you make money in any other states? the question, answer Yes, and make sure your nonresident state(s) are selected from the drop-down.
Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the non-resident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

When completing the Maryland return, you will enter the MD-sourced income. You get full credit for the taxes withheld from NY. Complete the Interview by responding to each question. See Screenshots as an examples