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My company is based in WA. I moved in WA from my remote work in CA on 01JAN22. My payroll changed address after 4 weeks & deducted CA tax in W2. How to claim CA Tax?
I am confused how TurboTax can handle my situation. I really appreciate if you could help reviewing my situation and let me know what I should do?
My timeline:
01/01/2022 - Moved to Seattle(WA) where my company is based from my remote work in CA on 01/01/2022.
01/01/2022: Submit my documents and asked my employer to change my address and not to deduct any tax, as in WA no tax.
But payroll took 6 weeks to change my address/profile and they deducted my CA Tax for 6 weeks (per my W2).
Now, W2 shows CA state ncome (box 16) and state tax withhold (box 17) for 6 weeks. But technicaly I moved to WA on 01/01/22, and it should be there, but payroll update took time, I understand.
Now, my question is, how to get CA Tax back as technically I should not be paying tax for CA.
What I tried so far:
1. When I enter, CA Tax Details, TurboTax shows amount earned in CA (amt in box 16) 'income allocation screen' and deduct tax as shown on (amount in box 17 on w2). In my openion I should get this CA tax amount back as it was just delay in payroll deptt to change my address/tax profile. How to do this adjustment? Pls advice.
2> If I ener CA income as 0 on 'income allocation screen' (which is the real case as I practically moved to WA from CA) , then TurboTax return me all tax deducted for CA state. This is what I want, but it will not match with W2 (box 16 and box17) detail with IRS and may invite AUDIT?
So, please guide me the correct way to handle this situation and how to do this adjustment?
Thanks in advance.
My timeline:
01/01/2022 - Moved to Seattle(WA) where my company is based from my remote work in CA on 01/01/2022.
01/01/2022: Submit my documents and asked my employer to change my address and not to deduct any tax, as in WA no tax.
But payroll took 6 weeks to change my address/profile and they deducted my CA Tax for 6 weeks (per my W2).
Now, W2 shows CA state ncome (box 16) and state tax withhold (box 17) for 6 weeks. But technicaly I moved to WA on 01/01/22, and it should be there, but payroll update took time, I understand.
Now, my question is, how to get CA Tax back as technically I should not be paying tax for CA.
What I tried so far:
1. When I enter, CA Tax Details, TurboTax shows amount earned in CA (amt in box 16) 'income allocation screen' and deduct tax as shown on (amount in box 17 on w2). In my openion I should get this CA tax amount back as it was just delay in payroll deptt to change my address/tax profile. How to do this adjustment? Pls advice.
2> If I ener CA income as 0 on 'income allocation screen' (which is the real case as I practically moved to WA from CA) , then TurboTax return me all tax deducted for CA state. This is what I want, but it will not match with W2 (box 16 and box17) detail with IRS and may invite AUDIT?
So, please guide me the correct way to handle this situation and how to do this adjustment?
Thanks in advance.
Topics:
March 22, 2023
5:44 PM