Handling Multiple W2's from same employer

[BishB]

Background: i live in PA and my employer is HQ in NY... I work 20% of time in NY, 80% of of the time in PA. 

My employer previously only worked with NY state when it came to state income tax.  So, i would make the appropriate adjustment and make quarterly estimated tax payments to PA.  In Q4 of 2025, my employer began working with other states and submitting tax to other states, including PA.  

For my W2, i received 3 versions

1.) in the state section it says "TOTAL STATE"

2.) in the state section it lists NY along with my total taxable wages

3.) in the state section it lists PA, and basically 1 quarter worth of my taxable wages (b/c they only worked with PA for Q4 of the year)

When entering this information in the Federal tax section of TT, i did exactly as instructed (and as i've seen directed by experts on here).  I only put it in as a single W2, with an additional state, and filled it out correctly.

However, when I come around to doing the states, its pulling into the PA return as 2 separate W2's... So my PA return has my taxable income overstated by approx 25% (full wages from the NY W2 and the 1 quarter of wages from the PA W2).... 

How do i remedy this? For both W2's, do i check the box that says "I need to make an adjustment to the taxable amount of this income" and revise the taxable amount?  Its not exactly as simple as multiplying it by the proportion of my time i spend in PA, as its double counting Q4 wages

or... do i just delete the PA W2 from TT, since its double counting Q4 wages.... ? that doesn't seem right.

appreciate any help someone can provide!

[AmyC]

You live in PA. PA taxes all income and give a credit for income also taxed by NY. You need to go back to the W2 section and be sure the NY taxable wages (20%) plus PA (80%) wages equal total state wages.

[BishB]

Do you mean doing this in the federal section, or in the PA state section?

[AmyC]

In the federal entry of the w2. The IRS and both states have the forms from your employer. You need to make the program understand the correct wages. One w2 listed, 2 states with income allocated.

[BishB]

ok, so by way of an example, i've attached a proposed 'before and after', with the changes highlighted in yellow ..... if i did it this way, would i be revising the federal w2 section correctly?

[RogerD1]

Yes, this would be correct.  You've allocated 20% of the wages to New York and 80% of the wages to Pennsylvania on the W2.  The non-resident amount taxable in New York is 20% of the wage total while 100% of the wages are taxable to Pennsylvania, with a credit applied for the 20% that was taxable to New York.

When you do your state returns, be sure to start with your non-resident New York return and finalize it before starting your Pennsylvania return.  If you had already started your state returns before editing your W-2, you should delete the state returns and start over.  To do that in TurboTax online:

1. Click State on the left side menu then click Go to state return in the lower right corner
2. Click the trashcan icon by each state you want to delete, then click Delete on the pop-up window.
3. To add the states back, click the + Add another State button and select the state to added back from the dropdown menu

To delete a state return in the Desktop product, click File in the black banner at the left, then slick Remove state return from the dropdown menu.  Confirm the removal of the state to erase the data you previously entered so that you can start off with a clean slate.