AL State taxes with NY wages

Forum|Forum|3 years ago
April 17, 2023
1 reply
2 views

I am a resident of Alabama with NY state wages. The New York W2 required that all Federal wages from the employee be listed on the NY Wages line. In Alabama I have to report all income from all states. Because of the NY W2 requirement TurboTax is of course reporting all W2 state income of the State Wages W2 form. This results in taxes become double on the AL Form 40 line 5. I can override in TurboTax but this does not pass the review.

How do you handle NY W2's on Alabama state taxes?

MayaD

Alumni - Intuit

Your salary is taxable in New York, where you earned it, and Alabama, where you live. To avoid being double taxed on the same income, you're allowed to take a credit for taxes paid to New York on your Alabama return.

You need to file NY non-resident return and AL resident return.

Make sure you've filled out the Personal Info section correctly:

With your return open, select Personal Information
Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
Select Continue to return to your Personal info summary.

To ensure accurate calculations, always complete the non-resident return first.

How do I file a nonresident state return?

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msanders1Author

Level 2

Thanks, but this is not the issue. I understand I have to pay taxes on the NY wages the issue is the NY W2 shows all Fed wages as NY wages not only the wages in NY. Here are the numbers:

AL W2: Fed Inc: 6218 State 803

GA W2: Fed Inc: 6218 State 1333

ME W2: Fed Inc 6218 State: 807

MS W2: Fed Inc: 6218 State: 800

NY W2: Fed Inc: 6218 State; 6218 (Acutal income in NY was 825 and this is what the NY return reports)

PA W2: Fed Inc: 6218 State: 850

SC W2: Fed Inc: 6218 State: 800

So actual wages are $6,218. However, because of the NY W2, Turbo Tax is putting $11,611 on the AL 40 line 5. I can override the "AL Wages, Salaries, ...for Line 5 of Form 40/40NR" but if I do so it will not pass review.

BrittanyS

Level 12

It would be helpful to have a TurboTax token. The token provides a sanitized version of your return. We will be able to see the numbers but not any personal information such as your name, SSN, or address.

If you would like to do this, here are the instructions:

In TurboTax Online, go to the black panel on the left side of your program and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen, and you will get a Token number.

In TurboTax CD/Download versions, go to the black panel on your screen and select Online.

Scroll down and select Send tax file to Agent.
You will see a message explaining what the diagnostic copy is.  Click send through this screen, and you will get a Token number.

Reply to this thread with your Token number.

We will then be able to see precisely what you are seeing, and we can determine what exactly is going on in your return and provide you with a resolution.

@msanders1

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