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Changes to W2

I live in NC, but work in multiple states throughout the year, thus files taxes in multiple states. In years past my W2 allocated the income earned in each state. Example:

Total Income: $100,000

NC $50,000

MS $25,000

MD $15,000

TN $10,000

 

The total from the states was close to or equaled overall total. 

This year our company changed payroll vendors and now my total compensation is on my W2 as the total and NC (home state), so when adding states together is greater than my total. Example:

Total: $100,000

NC: $100,000

MD: $40,000

MS: $12,000

 

Having worked in NY I know it always shows the total, then when filing I did a percentage allocation. 

Will NC be similar?  How do I not get double taxed?  

This is the first time in 15+ years of working in multiple states that my W2 is reflected like in example 2, not example 1. 

I inquired with my employer and they basically said this is the way the new software does it. 

Thanks-

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1 Reply
TomD8
Level 15

Changes to W2

You home state of NC can tax all your income, regardless of where you earn it. Other, non-resident states can tax the income you earned by working within those states. It looks like your W-2 has already made that breakdown and can be entered as is. In TurboTax, be sure that you complete the non-resident state returns first, before you do your home state return. That's because your home state will give you a credit for the tax you paid to non-resident states. You need to complete the non-resident state returns first so that the program "knows" the amount to be credited.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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