My employer did not switch the withholdings for my taxes when I changed states. I now have only 1 W2, do I include this W2 in both state returns?

Louise-S · ‎June 7, 2019

I moved mid-year to another State. The day I received my new driver's license I notified my employer that I had switched states and residency. They changed my address to reflect the new address but didn't know to switch the State for withholdings as well.

As a result I have only one W2 instead of two. I filed out the forms for each state, where I owe money to one and get a refund from the other. Turbo Tax asks for "Forms W-2(s)/1099(s) that have [Enter State 1 Here] withholding" to be included with the taxes. I only have the W2 from State 2.

Do I still include the W2 form from State 2 in the State 1 Tax Return?

Do I need to get a W2 stating zero withholdings for State 1?

DianeW · ‎June 7, 2019

No, you do not have to get another W2.

Prepare your federal return as usual, with one exception.

In the W2 entry you can use your pay check stubs to split the state wages income between the two states in box 15. Enter for each state the actual wages earned in each state but leave all of the withholding listed for the state where it was actually paid according to your W2.

You should be able to apply the applicable wages to each state when you are preparing the state returns but this may make it easier. Be sure to select part-year residency status in each state.

As you noted, there will be a balance due to the state where no withholding was taken, but the refund from the other state should offset it at least partially. All states have different rates of tax.

My employer did not switch the withholdings for my taxes when I changed states. I now have only 1 W2, do I include this W2 in both state returns?

Get your taxes done using TurboTax