Forgot to update my W4 in 2022

[emp02350]

Last year I worked the first 2 months in MI and the remaining of the year in NC.

I forgot to submit a new W4 to update the address, so my W2 came as if I had held taxes only in Michigan.

How should I report when filling for part year resident income Allocations in NC? 

[HelenC12]

You'll have a large refund from Michigan but you'll owe the state of North Carolina.  Please see the different methods below on how to allocate your earned income to file your part year state income tax returns.

Method 1: This is the simplest method of all and the most accurate if your income fluctuates from paycheck to paycheck.

• Find a pay stub with the pay period ending around the time of your move. 
• The YTD (year-to-date) amount on the pay stub is how much you earned while residing in your former state.

Method 2: This method is pretty accurate as long as your income is more or less the same from paycheck to paycheck.

• Estimate the number of weeks/months you worked at that job while a resident of one state and divide it by the total of number of weeks/months you worked at that job to come up with a factor. Apply the factor to your total income from that job to come up with the allocation for that state.

For example, if you worked at that same job the entire year and moved in early May, you earned roughly 4 months' worth of income (1/3 or 33% of your total income) in your old state. Multiply the total income from that job by .33 to obtain the allocation for your former state. The remainder gets allocated to your new state.

Method 3: This method is the most accurate, but it also assumes your income is more or less the same from paycheck to paycheck.

First, find the Julian date of your move (also called an ordinal date). Search for Julian date in your favorite search engine.

• For example, if you moved on August 8, 2022, the Julian date is 220, which simply means August 8 is the 220th day of 2022.

Then divide your Julian date by 365 to come up with a factor, which should be less than 1. Apply your factor to the year's total income from that job to get the income allocation for your former state. The remainder is allocated to your new state.

Tip: Your payroll department may also be able to help. They should have access to time sheets and other records that can give you an accurate picture of your earnings before and after your move date.

[emp02350]

Thank you very much!