Thanks DMarkM1 again for the clear explanation! Just some quick follow-up questions:
- If I am adding up paystubs, I should sum the amount called "Federal Taxable Wages" on each paystub, even though it is really meant to calculating state taxes, right?
- The amounts allocated to each state, when added together, should equal Box 1 on my W-2, right?
- Box 16 "State wages, tips, etc" of W-2 basically can be ignored when doing my state returns since my employer was not immediately aware of my move and did not have my exact date of move, right?
Just curious, if two states do not have a reciprocal agreement, then the income from working out of state is always fully taxed by both states, but you may claim a tax credit for every dollar you paid to the other state in your state of residence to avoid double taxation?
