Skip to main content
Level 2
March 31, 2021
Solved

As a part year resident, state income tax in my W-2 didn't apply to second state?

  • March 31, 2021
  • 2 replies
  • 31 views

Hi, I'm confused as to why my state tax is so high.

 

Some info:

I moved from Arizona to Colorado on Jan 21, 2020

My W-2 paid $2029.14 in state tax

My W-2 only mentioned Arizona in field 15

 

After filing out both states on Turbotax, I'm told that I'm due to pay full of Colorado state tax. That doesn't make sense, where did my income tax went to if Colorado didn't get anything from me? I doubt Arizona needed all of $2029.14 for only 21 days of living in the state

 

Is my W-2 supposed to include both Arizona and Colorado?

    Best answer by ErnieS0

    State withholding does not transfer. You can’t claim Arizona state tax withheld on a Colorado return because your employer sent those taxes to AZ not CO.

     

    Your employer should have changed your withholding to CO when you moved. Check your current pay stub. Contact your employer if CO tax is not being withheld.

     

    You should be getting a big refund from AZ since your employer withheld AZ tax by mistake for 11 months.

     

    You will have a big tax bill to CO since no CO tax was withheld for 11 months.

    Colorado extended its filing deadline to May 17 like federal. If you file AZ quickly you should be able to get your AZ refund before May 17 and have money to pay CO.

    2 replies

    ErnieS0Answer
    Level 15
    March 31, 2021

    State withholding does not transfer. You can’t claim Arizona state tax withheld on a Colorado return because your employer sent those taxes to AZ not CO.

     

    Your employer should have changed your withholding to CO when you moved. Check your current pay stub. Contact your employer if CO tax is not being withheld.

     

    You should be getting a big refund from AZ since your employer withheld AZ tax by mistake for 11 months.

     

    You will have a big tax bill to CO since no CO tax was withheld for 11 months.

    Colorado extended its filing deadline to May 17 like federal. If you file AZ quickly you should be able to get your AZ refund before May 17 and have money to pay CO.

    **Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"
    Level 2
    March 31, 2021

    I understand very clearly now, thank you for explaining why Ernie!