topic W2 doesn't reflect correct income earned between two states (CA and MT) in State tax filing

W2 doesn't reflect correct income earned between two states (CA and MT)

Anonymous — Mon, 09 Mar 2026 04:35:13 GMT

I moved partly through the year and my W2 doesn't reflect the correct amount of income I earned in each of two states (from CA to MT) -- I moved before my employer started reporting and withholding correctly to MT. I'm expecting a refund from CA and expect to make a payment to MT. When using TurboTax and try to report my correct income on the MT state forms, I get this error: "Montana source wages, salaries, tips, etc. is too large." which makes sense because of what's reflected in my two W2s provided by my employer. Is there any way to report to Montana what I actually earned in the state via TurboTax vs what's reflected in my W2?

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

MaryK4 — Tue, 01 Mar 2022 02:56:52 GMT

You are a part-year resident of Montana if you moved into or out of Montana during the tax year with the intention of establishing a permanent residence in your new state. As a Part-Year resident, you report and pay taxes on wages you made in the state. In the Montana tax section, you are able to allocate the amount to correct what is on the W2. (See Bellow)

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

Anonymous — Tue, 01 Mar 2022 03:14:46 GMT

Mary, I've done this part correctly. It's when I check the MT state filing for errors, TurboTax doesn't seem to like that what's reported in my W2 for my MT income is not what I reported in the field you showed in your screenshot. Hence the: Montana source wages, salaries, tips, etc. is too large error I get when I TurboTax checks for errors. This is preventing me from filing electronically with the state although I believe I've done everything correctly. I have wondered if the fact that my W2 form for Montana reflects a fraction of what I earned in the state (and what I reported via what you shared) is preventing me from completing the online filing or if there's something else I'm missing.

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

MaryK4 — Tue, 01 Mar 2022 03:55:04 GMT

If you could get a diagnostic copy of the return and enter the token number here I can look at it. The diagnostic copy wipes out all personal information and just send us the numbers. Click on tax tools in the left menu bar, then Tools, then share my file with an agent, which will create a diagnostic copy.

@Anonymous

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

Anonymous — Wed, 02 Mar 2022 07:16:36 GMT

Here it is: 94****

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

MaryK4 — Tue, 01 Mar 2022 04:12:31 GMT

Thanks- I'll work on it tonite, but check back tomorrow.

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

Mike9241 — Tue, 01 Mar 2022 07:33:08 GMT

what you need is a corrected w-2. the state gets a copy of the W-2 and what it's going to believe is what the w-2 shows for state wages.

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

Anonymous — Wed, 02 Mar 2022 07:15:39 GMT

Hi @MaryK4 any update? I wonder if @Mike9241 suggestion of trying to get my employer to issue a new W2 is the only way to fix this error. Thanks.

Re: W2 doesn't reflect correct income earned between two states (CA and MT)

MaryK4 — Fri, 04 Mar 2022 04:09:20 GMT

@Anonymous You are correct- TurboTax uses the W2 amount even and the allocation in the Montana section is a dead box.