Incorrect State mentioned in Box 15 of W-2

[tapovrat]

Hello All,

I've incorrect state on the W-2 form (box 15). I've notified the employer but I think it's too late. What would be the procedure now? I've not yet filed taxes.  I heard I need W-2c but my employer won't get that to me until 3-4 weeks so i'll end up missing the deadline. 

I changed jobs and moved to TX from MA in June 2024 but my new employer in TX never updated my MA address to TX. I saw that my W2 with current employer in TX has withheld state tax for MA from June - Dec 2024. How can I get it back and what can I do now to meet the deadline?

For reference, I'm joint filing and my spouse in a nonresident alien.      

[RobertB4444]

You're going to need to file a part-year resident return for Massachusetts.  Since Texas doesn't have a state tax there isn't a credit for taxes paid to another state.  Even if your employer corrects your W2 it won't change the fact that they already sent tax money to Massachusetts.  You will have to file a return to get any of it back.  

You can enter the amounts into your W2 as though it had been corrected.  Figure out the portion of your salary that was paid prior to your move and enter that as Massachusetts income along with the full amount withheld.  

Then, as a second state, enter Texas and the remaining portion of your salary with nothing withheld.  That will help with the non-resident return and will correct the W2 to show it as it should have been.  Maintain records to prove all this in case anyone ever asks.

@tapovrat 

[tapovrat]

@RobertB4444 Thanks for your response. I have a few follow up questions:

1. How do I file a part-year return? Is that done separately from my regular state tax filing and is the deadline for part-year tax April 15?

2. When you say enter correct amounts into my W2s, do you mean that:
  a) In TX W2, I enter everything as is, just replace TX with MA in Box 15 and enter $0 in state income tax withheld (Box 17) and;
  b) In MA W2, I should add the state tax withheld to Box 17 and leave everything else the same?

  

[RobertB4444]

1.  You're going to file a part-year return instead of your regular Massachusetts return.  When you entered the information into TurboTax at the start of the filing process hopefully you told the system that you had moved from Massachusetts to Texas.  When you go to file your state return the system will enter that change in residency so that the Massachusetts return that is generated will be a part-year return.

2.  When you enter the W2 into the system and scroll down to the bottom for "State Taxes" there is the option to 'Add another state'.  Click that option.  Then you will have two each of boxes 15, 16 and 17.  Enter the information in the first set of boxes exactly as you have it on the W2 that you received.  Then change the amount in box 16 to be the amount that you earned before the move.  Now, in the second state box put Texas in box 15 and the amount of salary that was paid after the move in box 16.  Leave box 17 blank.

@tapovrat 

[tapovrat]

@RobertB4444 

In that case, should I only fill out one W2 from MA for my first employer?

Or should I also enter the W2 from TX but leave the tax withheld (Box 15/16/17) blank?

[RobertB4444]

Just one W2.  With two states on it.

@tapovrat 

[tapovrat]

@RobertB4444 If I only enter one W2 (MA), the declared income is only for 6 months, because the remaining 6 months income, July - December, was from my second employer in TX. Due to this, my tax refund increases significantly as my overall income goes down. 

Should I sum the income of all 12 months in one combined W2?

[DaveF1006]

No. Since these are from two different employers, each W2 needs to be entered separately. 

[tapovrat]

@DaveF1006 @RobertB4444

1. Should I enter the first W2 (MA) as Robert mentioned below in addition to the second W2 (TX)? 
2. In the second W2 (TX), what should I enter for state tax withheld? 

Robert's previous response:
" When you enter the W2 into the system and scroll down to the bottom for "State Taxes" there is the option to 'Add another state'.  Click that option.  Then you will have two each of boxes 15, 16 and 17.  Enter the information in the first set of boxes exactly as you have it on the W2 that you received.  Then change the amount in box 16 to be the amount that you earned before the move.  Now, in the second state box put Texas in box 15 and the amount of salary that was paid after the move in box 16.  Leave box 17 blank."

[RobertB4444]

I am sorry.  I misunderstood.  I thought this was one W2 from one employer that kept paying taxes to Massachusetts.

@DaveF1006 is correct - you need to enter two W2's.  The one from your Massachusetts employer gets entered as it is, just as you received it.  

The one from your Texas employer is going to get changed.  To start, enter everything just as you received it which should show Massachusetts as the state in Box 15, the same amount as in box 1 in box 16 and the tax withheld for Massachusetts in box 17.

Now add another state and put Texas in box 15.  Enter the same amount as in box 1 into the box 16 for Texas.  Then change the amount for the Massachusetts box 16 to zero.  

That makes your W2 match what it should be.  None of the income was earned in Massachusetts but Massachusetts withheld the tax.

@tapovrat