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?
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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:
To ensure accurate calculations, always complete the non-resident return first.
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.
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.
In TurboTax CD/Download versions, go to the black panel on your screen and select Online.
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.
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