Incorrect address on W-2 and therefore I had tax withheld for the wrong state. Would it be better to file my taxes in both states or wait for the corrected W-2? The state won't refund my money since the incorrect address is in their state.

Forum|Forum|3 years ago
March 13, 2023
1 reply
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Best answer by DMarkM1

Ok,

Thanks, last year I didn't file and the return was rejected because the W-2 showed the tax was applicable to the state.

But you are saying that this comparison doesn't apply for returns that are efiled? That is good to know.

The same rules and filing are applicable whether you mail in or e-file your tax returns. As @MarilynG states the information on your tax return is used to file the correct forms for the states; not the address on the W2. What has passed has passed. The taxes have been paid (wrong state) or not paid (resident state) already. Now you use your tax return to get a refund from the wrong state and pay the correct state.

You are not going to get a corrected W2 due to an incorrect address that changes your tax return calculations. Unless the amounts you were paid (box 1) are changing, you do not need to wait for a corrected W2.

However, you will need to submit a state W4 to have your employer change the state that it is withholding for going forward.

In the "My Info" section indicate the state you lived in on 31 Dec 2022 and use your current address. This will generate the resident return forms for your resident state that does tax that income. Since there was no withholding you will likely owe a tax to this state.

Since you did not live or work in the state that taxes were withheld for,

In the "My Info" section scroll down to "Other State Income"
Select "Yes" you earned money in another state
Select that state from the dropdown menu
Enter the W2 information just as your form indicates
Go to the state interview and verify your nonresident status
Continue to the "Income" section in that state return.
There you will be able to enter zero for the income that should be allocated to the state. Your return will then show a refund of all the withholding entered from your W2.

HelenC12

Level 15

If your employer sent the withholding to the wrong state, changing the address on your W-2 won't make a difference. You'll need to file a return in the nonresident (wrong) state to get your state money back.

See How do I file a nonresident state return?

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babenegarAuthor

Level 2

I had this problem last year and the state won't recognize that the refund is valid, since the address on the W-2 is in that state. I am waiting for the corrected W-2. So would it be better to go ahead and file now and do an amendment when I get the corrected W-2, or should I get an extension and then file at that time asking for the refund. (the question also applies to the state return where I live since the corrected W-2 will change the AGI for my state and change the tax owed to my resident state.

MarilynG

Level 15

If you Efile a Non-Resident State return, the address on your state return will be your current Mailing Address that you entered in the MY INFO section. Indicate which state you are a Resident in, and that you 'made money in another state'.

Since many people move, the address on the W-2 is often incorrect incorrect anyway, so this is not a factor in determining residency. It doesn't matter if the employer is located in that state, only what state(s) you actually lived in.

What's important for you is to indicate in the Non-Resident interview that you did not live in that state.

Prepare your Non-Resident State first, then your Resident State.

Here's more info on How to File a Non-Resident State Return.

@babenegar

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