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New Member
posted Jun 4, 2019 6:01:08 PM

How to prevent double taxation in resident state when I have 3 W2's (across different states)?

I have 3 W2's:

  • MA (resident). Has the correct "state wages and tips - box16" and "state tax - box17" amounts
  • NC (non-resident). NC taxes on a smaller subset of "state wages and tips - box16", and appropriate box17. Is accurate.
  • NY (non-resident). However, NY uses the same "state wages and tips - box16" amount as MA with a very very small "box 17" ~$100

What I did:

  1. Using the Turbotax tips, I have filled these as a single W2 with multiple State rows (as represented by boxes 15-17)
  2. Filed out non-resident states first. NC first. And in NY I used "% of income from this state = 0". This made my NY tax of ~$100 fully refundable
  3. Then turned to MA. Turbotax picks up my total income incorrectly.  It's adding MA state income and NY state income (that I really didn't earn and in all likelihood is mistakenly issued by my company -- I moved from NY a few yrs ago, and it's an oversight from hr) 

The MA return will give me Credit for the NC taxes, but for NY only for the $100 - so it's really double counting my top line earnings.  Any thoughts to remedy?

My other option is to port over only the MA W2 for the state return, but then e-file won't work. 

Appreciate any help!

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1 Best answer
Expert Alumni
Jun 4, 2019 6:01:09 PM

You'll probably have to mail in your Massachusetts return.  Required programming for Massachusetts will double-up income, and the only way to alleviate this that I've seen is to zero out the W-2, but then you are forced to mail in your return.  While mailing the return takes longer than an e-file, it will be processed correctly.

5 Replies
Expert Alumni
Jun 4, 2019 6:01:09 PM

You'll probably have to mail in your Massachusetts return.  Required programming for Massachusetts will double-up income, and the only way to alleviate this that I've seen is to zero out the W-2, but then you are forced to mail in your return.  While mailing the return takes longer than an e-file, it will be processed correctly.

New Member
Jun 4, 2019 6:01:10 PM

Thanks!

Expert Alumni
Jun 4, 2019 6:01:12 PM

One other thing:  why did they take NY tax?  Do you telecommute?

New Member
Jun 4, 2019 6:01:13 PM

Not anytime in 2017.  I moved from NY to MA (same job, moved offices & residence) back in 2014-15.  In 2016 I only received MA + NC (expected) w2's and everything in turbotax worked like a charm.  In 2017 I am unsure why I got MA + NC (expected) + NY (unsure).  Am trying to find out with HR folks why I received this w2, will post here if I find any leads.  

In case they accept it was an HR mistake, should I ask for a cancellation of NY w2 and then omit from returns?  

In case they are non-committal (usually the case), is it OK to proceed with marking NY state tax as 0% of marked income?

Expert Alumni
Jun 4, 2019 6:01:15 PM

Yes, that sounds correct.  I asked because NY taxes the telecommuter, but it sounds like in your case NY state tax was mistakenly withheld.  Be sure to hold onto any documentation should NY ask for it.