topic Daughter moved to AZ from NJ in 2023, but never updated her state withholding in State tax filing

Daughter moved to AZ from NJ in 2023, but never updated her state withholding

jalcott — Wed, 28 Feb 2024 00:17:42 GMT

I am completing my daughter's state tax returns including her AZ Part-Year return. I've allocated the correct amount of wages applicable to her AZ Part-Year return (25% since she moved in at the end of September, so 9 months or 75% of her wages were attributable to NJ), but do I need to provide an explanation as to why the state copy of her W2 shows only wages and tax withheld for the state of NJ? If so, is there a form to use or a format to follow in order to accomplish that? Or, would a detailed explanation I draft on my own be acceptable?

Thank you for any guidance!

@ Arizona Form 140PY

@ No State Tax Withholding

Re: Daughter moved to AZ from NJ in 2023, but never updated her state withholding

Vanessa A — Wed, 28 Feb 2024 00:22:31 GMT

but do I need to provide an explanation as to why the state copy of her W2 shows only wages and tax withheld for the state of NJ? No, you do not need to provide a statement as to why only part of her wages and taxes withheld are being reported to the state of NJ. The fact that you are filing part year returns for both will basically explain they why the wages and withholdings are allocated.

When you are walking through the forms, it will ask you about dates and numbers of days. This is enough of an explanation to cover why the income is allocated the way it is.

Re: Daughter moved to AZ from NJ in 2023, but never updated her state withholding

jalcott — Wed, 28 Feb 2024 01:05:53 GMT

Thank you for responding so quickly! I apologize for any confusion. I meant to say I'm more concerned about the AZ return. The AZ return will show wages (3 mos. worth) and $0 taxes withheld. It will also be accompanied by the W2 showing state wages and tax withheld only for NJ. I just thought that would raise a question when AZ processes the return. I guess if the state of AZ receives additional information or metadata indicating the breakdown of days of AZ residency as part of the return, then they would be able to make sense of the allocation.

Re: Daughter moved to AZ from NJ in 2023, but never updated her state withholding

DaveF1006 — Wed, 28 Feb 2024 01:11:45 GMT

Yes, this is correct. If the dates of residency is recorded correctly between the two states, there should be no concern when AZ processes the return because the information is recorded in the AZ return.

@jalcott