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TaxWmn
Returning Member

why is my taxable state amount different from what's listed on my w-2

My w-2 has taxable state wages but when I did my return the amount turbo tax enter was much higher
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2 Replies
CesarJ
Expert Alumni

why is my taxable state amount different from what's listed on my w-2

The amount for taxable state wages in TurboTax may differ from your W-2 due to how state source income is allocated. TurboTax adds all state wages reported in box 16 of your W-2s, which can be higher if you have income sourced in multiple states. This can happen if you live and work in different states or have multiple employers reporting wages for different states.

Review the state and local wage entries in TurboTax, especially boxes 15–17 of your W-2. Make sure that the state abbreviation in box 15 matches the earnings in box 16, and adjust if any wage is incorrectly attributed to a state.

The difference might also occur if your wages were earned in one state but reported under another employer’s state ID. TurboTax needs correct allocation to avoid double counting or inflating wages reported to a particular state.

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why is my taxable state amount different from what's listed on my w-2

There is probably an error on the amount that was entered on the TurboTax W-2 for state wages, box 16.  Either a typo or a misplaced decimal point or a comma entered as a decimal point.

 

Go back to the W-2 section of the program and edit the W-2 to check for errors. 

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