I am a PA student/resident who worked for Boeing in WA last summer. Boeing withheld PA taxes on small portion of my earnings. How do I correct my PA state earnings in TT?

[Murph77]

I worked as an intern for Boeing in WA in 2017. Boeing listed an amount in Box 1 of my W2 that included salary/wages, co-op allowance, award, and relocation. In Box 16, Boeing only lists my co-op allowance amount, which was only 10% of Box 1. Boeing lists PA in Box 18, and it withheld 3.07% in Box 17. I assume I owe PA income tax on the full amount in Box 1. How do I correct Box 16 so Turbo Tax calculates the correct PA liability?

[re2boys · Accepted solution]

Somewhat different point of view.

If you were filing a non-resident or part year resident PA return, the allocation of income to PA by your employer would be critical.  However, as a PA resident, ALL your income is taxable by PA regardless of where earned.  PA will be expecting your reported income for PA tax purposes to be very close to the federal box 5.

I would go in and change your W2 entry, box 16 to match box 5. Also use this new box 16 income on your local municipal earned income tax return as local tax agent and PA share information.

[KittyM]

If you believe there is an error in your W-2, you will need to contact your employer and request a corrected W-2 (called a W-2c).  You cannot make any changes to your W-2 when preparing your return, as the IRS and your State will consider your changes a mistake and correct them to the figures your employer provided when processing your return.