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How to split income between resident states when box 16 isn't correct?

One worked in WI full year in 2019, but moved from WI to IL in April. WI tax withhold did not stop until Aug. So WI income in box 16 shows WI income of 8 months, which should have been just 4 months. Does he have to ask his employer to correct W2? Or just correct box 16 when filing tax in Turbo? Or it does not really matter based on how many months lived in WI. Thank you!

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1 Best answer

Accepted Solutions
BillM223
Expert Alumni

How to split income between resident states when box 16 isn't correct?

The tax withheld on your W-2 are just estimates. They do not reflect what your income allocation should be. It happens all the time that an employer withholds tax for one state when the tax is actually owed to another state.

 

This is good motivation to check your pay stubs and ask your payroll people what's being withheld for whom.

 

Since your employer has probably already sent this withheld tax to the states in question, the only way to "fix" this is to file state tax returns for both states.

 

Please do not ask the employer for a corrected W-2 (they would just say "no" anyway). It will all work out when you file the state returns.

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2 Replies
BillM223
Expert Alumni

How to split income between resident states when box 16 isn't correct?

The tax withheld on your W-2 are just estimates. They do not reflect what your income allocation should be. It happens all the time that an employer withholds tax for one state when the tax is actually owed to another state.

 

This is good motivation to check your pay stubs and ask your payroll people what's being withheld for whom.

 

Since your employer has probably already sent this withheld tax to the states in question, the only way to "fix" this is to file state tax returns for both states.

 

Please do not ask the employer for a corrected W-2 (they would just say "no" anyway). It will all work out when you file the state returns.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How to split income between resident states when box 16 isn't correct?

Really appreciate your advise, clear and precise!

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