Massachusetts Nonresident Return

[Alb2019]

I am preparing both my and my husband’s tax return.  We file separately for student loan reasons.  He only works in MA but turbo tax is coming up with a number for income earned outside of MA.  This number matches the difference between is federal wages (box 1) and his state wages (box 16).  However, he does not work anywhere else.  Should I delete it and put 0?  He received a corrected W2. I ran a joint return just to see the difference and turbo tax stated we had “0” for income outside of MA.  

[KrisD15]

What does the difference in the amount in Box 1 on his W-2 and the state wages represent? 

In other words, if his W-2 shows Federal wages of 50,000, but state wages of 40,000, where did he earn the other 10,000?

Did the corrected W-2 adjust Box 1? 

[Alb2019]

I don’t know what it could represent, he only has one job.  It’s a $124 difference.  Both federal and state wages were corrected on the w2.  On the original, state wages were higher than federal, which is always the case for me.  Now, state wages are $124 less than federal.

[KatrinaB48]

You should correct the w-2 that you have entered to include the new information and re-run the state return. Please follow the directions below to edit your W-2:

1. Log in and open your return.
2. Click the search field and type W-2, and click the jump to link.
3. On the next screen, select Edit beside the W-2 form you need to correct.

[Alb2019]

The information I entered was from the corrected w2.  I just don’t understand the difference in the numbers and how a small amount of money is coming up as earned out of state when he only has one job.  Maybe the corrected w2 is still wrong :(.

[DaveF1006]

 Did you apportion his wages in his Massachusetts state return. As you prepare his Mass state return, you come to the apportionment screens asking to separate his Mass income from non-mass sources. Scroll through his Mass return and the apportionment screens to see if there are numbers that shouldn't be there. Also if you reported other income like interest and dividends or unemployment make sure you indicate these are from Non-Mass sources.  

Also check to see if his Mass state wages matches his federal wages from the coreected W2.  If there is a difference in numbers, then that difference would be construed as non-mass income. 

[Alb2019]

Okay, got more information.  The 124 is from a stock sale.  It is listed as ESPP on his paystub and is included in his federal taxable wages on his w2.  So do I need to do anything else in TurboTax if it is already reported in his wages?  We did not receive any other forms like 1099b or anything.  He does get a form 3922.

[JohnB5677]

You should have received a 1099-B.  I'm sure the IRS did. 

The ESPP stock appears as income on the W-2 and it is already taxed.  You must enter the 1099-B to reflect the stock sale, but it will look like you got double taxed. 

Then you must then enter the 3922 to make adjustments so you don't get taxed twice.