I moved from California to Washington on May 27th, started working for a company from May 28th to Aug 16th. I came back to California on Aug 17th.
Almost half of the wages I see in Box 1 are listed as CA wages in Box 16. Is it incorrect? Should I get it corrected?
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I would recommend contacting your employer first to confirm the wages earned while living in Washington.
However, it does sound like this was a temporary move meaning your state of domicile was still California. Essentially that means you intended to return to California to live.
If this is the case, you would be taxed in California on all of the income, regardless of whether it was earned in Washington.
Since Washington does not have a state income tax, your income will only be taxed once in California so there would not be a credit for taxes paid in another state.
I checked with my employer. They said all the wages I earned are in Washington State. But, I have to pay the state tax for California as well, as I am in California for most of the year.
They were not sure why the CA wages box was that way in my W2 and asked me to consult a tax advisor regarding this.
They told me that they could issue me a W2C if I get back to them after consulting a tax advisor and explain to them what was wrong.
As a California resident, all of your income is taxable by California regardless of what state you earned it in. If you had earned income in another state with an income tax, this would matter. You would also owe tax to that state and then California would issue you a credit based on the amount of tax you paid to the other state. However, since you earned the income in Washington state, which has no state income tax, there is no additional state tax paid, and therefore no credit for tax paid to another state.
All of your income is taxable by California. You don't need a corrected W-2.
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