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State tax filing
Please verify that the W-2's are all correct and that one is not a CORRECTED W-2C.
If you have a W-2C, don't use the W-2 it is correcting.
Assuming none are W-2C's and assuming the state tax withheld is correct:
To enter into TurboTax, you'll need to enter them as if it is one single W-2 (as long as none of them is a W-2C)
I'm assuming the TOTAL of the state income for Both States is more than the federal AND that not either income for either state is more than the federal.
For example, Federal is 50,000 and state 1 has 30,000 reported as income and State 2 has 32,000 report, NOT Federal is 50,000 and state 1 is 60,000 and state 2 is 57,000.
IF EITHER STATE SHOWS MORE INCOME THAN THE FEDREAL INCOME I would ask payroll for a corrected W-2 and ask why they reported it that way.
So, as long as the amount of STATE TAX WITHHELD is correct, you can enter the forms.
(I tested and did not get an error when entering two states with income that totaled more than the Federal income)
YOU can allocate your income to each state, regardless of how payroll did.
I'm also ASSUMING you worked in VA and still work in VA.
VA taxes the income earned in the state, so doesn't matter where you live. Employees pay tax on whatever wages are earned in VA.
NC taxes the income someone earns while living in North Carolina, so it doesn't matter where you earned it.
In this situation, you pay tax on ALL the income earned in VA on a Part-Year Resident VA return.
Next you claim the income you earned AFTER you moved to North Carolina on your Part-Year Resident NC return.
You will receive a credit on your North Carolina return for the tax you paid to Virginia, so you are not double-taxed on the same income.
This does not always result in a wash, because North Carolina and Virginia may have different tax rates, credits and so on, but it should be close.
So what payroll attributed to VA and/or NC doesn't really matter, as long as the amount of state tax that was withheld is correct.
In reality, from how you describe your situation, they should withhold VA tax on all your income if that is where you work.
Next year you'll file a NON-Resident VA to claim the income earned while working there and a Resident NC return,
UNLESS YOU WORK REMOTELY in which case you'll need to continue your question and provide more details.
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