Hi Julie,
Thank you for your reply. My W2 lists no state tax data but that is actually correct. My situation is further complicated by the fact that I earn in Alaska while living in Arizona and now moving to North Carolina. Transferring the Federal earnings into the State return has never been an issue in 10 years of doing this, but I have also never had to do a split state return. I ended up declaring the income as an "Other Adjustment" and racked up the appropriate tax liability, so I hope Arizona will be satisfied with that work-around. They are getting paid correctly any how.
It would be ideal if the program flagged the drastic discrepancy between Federal and State income and asked for confirmation or correction. As it was, I could see the erroneous entry on the form when addressing other flagged entries but I could not correct it.
Thank you again,
-Vann
