I am having a similar issue this year. Did this end up working out for you?
My current situation, in case anyone can help answer:
MA resident. CA non-resident.
Using made up numbers...
W2 Federal box 1 = $100k
W2 CA box 16 = $20k
W2 MA box 16 = $100k
Going through CA non-resident, everything worked out fine.
Going through MA resident, I get to the page that asks about accuracy of the wages pulled from the federal w2 and it tries to pull the $20k from CA and $100k from MA = $120k. This is double taxing the $20k from CA.
I am unable to e-file if I ask TurboTax to use MA box 16 ($100k), which is accurate. Tax credit is applied for the taxes paid to CA on the $20k and taxes owed is correct, but I am forced to file by mail.
I found a lot of other folks with similar issues, including ones that shared recommendations from Tax Act: Massachusetts - Duplicate Wages Entered in Form W-2 (Residents Only) (taxact.com).
Would it be advisable to manually edit the MA W2 box 16 to be $80k so that TurboTax correctly pulls the $100k for MA and allows e-file? This results in the correct tax breakdown.
I'm still not sure whether this is a W2 issue, a TurboTax issue, or a MA tax e-file limitation.
Can anyone please advise?
