Box 16 of my W-2 has two amounts and was a part-time resident of two states

[biegelboy]

Worked in and lived in IL, but moved to IN in August 2022, so I'm a part-time resident of both IL and IN for 2022.

I still work in IL for the same company so all wages are still from the IL company and did not earn any wages in IN.

How do I handle the two different amounts in box 16?

1) Total wages

2) Appears to be 45% of my total wages 

Typically, total wages earned in IL are reported on IL state tax as a part-time resident and ZERO wages for IN (because I did not earn income in IN) as a part-time resident of IN.

BUT, Turbotax is auto-populating the second amount into IN wages and I end up owning 1000s of dollars. If I remove the second amount on my IN state form, I get a small refund. 

How do I handle this?

What is the right way?

I have done taxes for years and always used TurboTax, but have never seen two amounts in box 16.  I have done my family's taxes and they work in IL and live in IN ( similar situation) and never seen this before.

[Hal_Al]

"Typically, total wages earned in IL are reported on IL state tax as a part-time resident and ZERO wages for IN (because I did not earn income in IN) as a part-time resident of IN."

No, it does not work like that.  For 2022, you will file a part year resident return for both states.  For Il you will report all the wages earned in IL as well as any other income (e.g. interest) received while a resident of IL

For IN, you will report the IL wages earned after the move, even though it duplicates what you're reporting to IL. You will also report to IN any other income received after the move. IN will give you a credit for the tax  paid to IL, but only on the the tax paid on the wages after the move.  The TT interview can handle this

[biegelboy]

Sorry, I'm confused.

I lived and worked in IL from January 2022 to July 2022.

I moved from IL to IN and continued working in IL from August 2022 to the present.

I earned say (not real numbers), $1000.00 in IL (total wages)

My W2 has two amounts in box 16: 

IL $1000.00

IN $ 525.00 (about 55% of the total)

Box 17 - one amount

I reported total wages of $1000.00 to IL state and the full amount of box 17.

Turbotax auto-populated IN wages as $525.00 and because there is no second amount in box 17 - ZERO state income tax for IN. So,  in OWN...BIG TIME!

Again, with other taxes that I have seen where people work in IL and live in IN (albeit they are not part-time residents they are full residents), they get ( 2 ) W2s. One reports all the wages earned in IL and another for IN where state wages are noted in box 18 and not box 16.

The IL refund or credit is under $100 dollars and the IN state tax owed is over $2000, so something isnt right.

[Hal_Al]

Your confusion would appear to be that your expectations are off.  

Everything you describe says that TurboTax is doing it right.

You should get little or no refund from IL and have a big IN tax liability. 

There is one thing missing, in your description: the credit, on the IN return, for the tax  paid to IL.  That should reduce the IN tax bill by about half. 

Box 18, of your W-2, is wages for the county tax, not the IN state tax. 

[TomD8]

"There is one thing missing, in your description: the credit, on the IN return, for the tax to paid to IL."  

@biegelboy --

The "other state credit" should appear on Schedule G, Line 5, of your Indiana Form IT-40PNR, and should be included on Line 13 ("offset credits") of your Form IT-40PNR).