Moved states, company didn't reflect that on w2

[killershadow117]

I moved from Missouri to Kansas back in September, but my company did not reflect the tax change on my W2, it just shows tax being taken out for Missouri. What do I need to do in order to make sure that Missouri and Kansas both get the taxes they need?

[DianeW]

You can use your pay check stubs to determine how much was earned in each state during each residency period.  Complete your W2 by adding an additional line for a second state to enter the Kansas wage, you can use the same federal EIN for the state ID number and zero in the withholding box.

When you begin your state returns be sure to select part-year residency.  TurboTax will then ask the dates and allow you to put the income earned in each particular state.

The withholding will not change, all of it was paid to Missouri per your employer.  You should see a refund from Missouri and a balance due from Kansas assuming the withholding does cover your wages for the entire year.

• Using the State Taxes tab begin your first state and then add another.  The wages and withholding should carry correctly for each one.

[lindary]

Can a return where the w-2 has been modified be efiled or will a Form 4852 be required (thus requiring a paper return to be filed)?

[JotikaT2]

It depends.

Did you already file your original tax return and then had a corrected Form W-2 issued?

If so, you will need to amend your tax return using a Form 1040X to reflect the most recent W-2 Form.  Please see the links below to determine if this applies to you as well as for steps on how to prepare the amended return.

Do I need to amend? 

How to amend my return? 

If however, you were issued a substitute W-2 Form, you can use the Form 4852 and mail your tax return in.

Substitute W-2 with Form 4852

@lindary

[lindary]

Thank you. I'm sorry but I wasn't very clear in posting my question.  The w-2 we received was incorrect - we moved and the income is not properly allocated between old state and new state.  Not sure if husband's employer will re-issue a corrected w-2 in a timely manner or at all and so was wondering if we could edit the w-2 within turbotax and still be able to efile or if we will be forced to file a Form 4852 and snail mail our return.

[macuser_22]

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@lindary wrote:

Thank you. I'm sorry but I wasn't very clear in posting my question.  The w-2 we received was incorrect - we moved and the income is not properly allocated between old state and new state.  Not sure if husband's employer will re-issue a corrected w-2 in a timely manner or at all and so was wondering if we could edit the w-2 within turbotax and still be able to efile or if we will be forced to file a Form 4852 and snail mail our return.

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State tax withholding cannot be corrected after the fact.   The employer has already sent the money to the states.   All you can do is submit a state tax return for the state you legally reside in and pay any tax owed, and file a non-resident tax return  in the other state to get a refund of the tax over-withheld.

[lindary]

I realize that withholding cannot be corrected after the fact, but what about the state wages amount? I am trying to show somewhere in our return the correct wage amount earned in each state. Right now, the w-2 is showing 100% in California. Once the wage amount is corrected, it should then flow through to the part-year CA return which would then reflect an overpayment of taxes. So...can the state wage amount be corrected in TT without triggering the necessity for Form 4852 and a paper filing?

[TomD8]

If you continued to work in MO after your move to KS, be aware that any income you earn by working in MO continues to be taxable by MO, even if you are no longer a resident of MO.  So if you are continuing to work in MO, your employer should still withhold MO taxes.

Your income in that scenario will also be taxable by KS after you become a KS resident, but you'll be able to claim a credit on your KS return for the taxes paid to MO on the income taxed by both states.  Thus you won't be double-taxed.