2 states

Forum|Forum|5 months ago
January 30, 2026
1 reply
27 views

I lived in AZ and worked there until August 2025. I continued working for the same employer the rest of the year (and currently do). I have no less than 10 times emailed them and messaged them, telling them I moved and to start taking taxes out of my new state, ID. They STILL have yet to do that, and now I just received my W2 with just taxes being taken out of AZ only.

What do I do now? How do I file taxes like this? They just tell me they are "working on it" when I ask them every 2 weeks (when I get a paycheck) when they will switch my taxes to the correct state.

Best answer by ThomasM125

The best thing would be to get a corrected W-2 form reflecting the correct amount of income allocated to each state, but that may not be possible.

Alternatively, you can enter your W-2 as you normally would and when you work on your state returns, you prepare a part-year resident return for each state. When you do the return for Arizona, you may be taxed on all of your income for the year, including the income you earned while living in Idaho. To compensate for that, you will see an option on your Idaho return to get a credit for taxes paid to Arizona while you were living in Idaho. Once you complete that portion of the return, your tax in Idaho will be reduced to compensate for the double tax paid in Arizona.

Since you didn't have any Idaho tax withheld from your pay, you will likely owe tax to Idaho, but that will be compensated by the reduction of tax you owe to Arizona per the above. You should do the Arizona return first as you will need the amount of tax paid there to get a credit on your Idaho return.

T

ThomasM125Answer

Level 15

The best thing would be to get a corrected W-2 form reflecting the correct amount of income allocated to each state, but that may not be possible.

Alternatively, you can enter your W-2 as you normally would and when you work on your state returns, you prepare a part-year resident return for each state. When you do the return for Arizona, you may be taxed on all of your income for the year, including the income you earned while living in Idaho. To compensate for that, you will see an option on your Idaho return to get a credit for taxes paid to Arizona while you were living in Idaho. Once you complete that portion of the return, your tax in Idaho will be reduced to compensate for the double tax paid in Arizona.

Since you didn't have any Idaho tax withheld from your pay, you will likely owe tax to Idaho, but that will be compensated by the reduction of tax you owe to Arizona per the above. You should do the Arizona return first as you will need the amount of tax paid there to get a credit on your Idaho return.

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