Work in Two States - Total Wages not Matching State Wages on W-2s

Forum|Forum|1 year ago
March 31, 2025
1 reply
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I'm doing my daughter's taxes and have an issue...

She worked for the same company last year but in two different states (one state while home, the other while in school). She received two W-2s in the mail from the company. The first one has the Federal Reference and Filing copies, along with the State1 (home) Reference and Filing copies. The second one has just State2 (school) Reference and Filing copies. Both states have state income taxes.

All of the W-2s show the same amount ($2,094) in Box 1. Box 16 in the State1 W-2 shows the same $2,094 (matching the Box 1 amount), but this doesn't make sense as she worked in State2 and had some earnings there. Box 16 in the State2 W-2 shows $194 but, again, Box 1 on it shows $2,094. As such, the software has thrown back an error noting the Box 16 amounts do not match the Box 1 amounts. BTW, the Federal copies don't help as they do not list a state in Box 15 (noting "TOTAL STATE") and have Box 16 blank.

Do I simply deduct $194 from the $2,094 and say the State1 wages (Box 16) were $1,900? That would seem to make sense but my concern is that she has a W-2 for State1 that shows $2,094 in Box 16.

Thanks!

JohnB5677

Level 15

The first W-2 should be for her home state and the amount should equal box 1.

100% of income is taxed in the home state
The second W-2 should be included on the posting of the first W-2.
This should be for the non-resident state.
The amount in box 16 will be less than box 1.
To balance the taxes out, she will get a credit in her home state for taxes paid in the non-resident state.

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R2112Author

Level 2

Thank you! Yes, the first W-2 is for her home state. I'm still a little confused on how I report the state wages though...

When inputting the W-2s into the software, do I put the $2,094 that is listed in Box 16 of her State1 (home) W-2 and then the $194 that is listed in Box 16 of her State2 W-2? As I mentioned, when I do that, the software kicks back an error telling me that the (combined) State wages do not equal the wages in Box 1 (on any of the W-2s). Or do I deduct the $194 from Box 16 of her State1 (home) W-2 (enter $1,900), and report/enter the $194 from Box 16 of her State2 W-2, so that the total of the State wages equals the amount in Box 1 ($2,094).

Hopefully my question above makes sense.

JohnB5677

Level 15

The question does make sense, but the circumstance does not.

This may be an issue with the classification of the states.

Back in My Info for your daughter did you enter her home state for the whole year, or only for a part year.
It should be the whole year. Time at school is temporary.
Did you then say that State 2 was a part year resident. That is wrong.
She should show as a non resident.

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