Moved to Florida from Virginia but W2 says all income from Virginia

[paulv7260]

My employer does not have an account with Florida so all of my 2022 income is shown as Virginia. I stopped having Virginia income tax withheld when I moved in June and Florida does not have a state income tax. I am still employed by that business. Using the Virginia part-year form in TurboTax (TT) it did not prorate my income but it did provide a ratio (derived from my date-of-relocation) that I think I can use to  manually override the Virginia income amount. Does doing this make sense?

Thanks

Paul

[Mike9241]

contact your employer to see if you can get a corrected w-2.  Florida does not have an income tax. however, states can give taxpayers a hard time when their w-2 shows all wages in that state and the taxpayer claims they're not. it all depends on the state

[paulv7260]

Thanks. That's the problem. He won't do that because he says the he does not have an "account" in Florida. I'm assuming that all income must be reported so he would have no other state to report it.

[HelenC12 · Accepted solution]

In TurboTax, as you prepare your Virginia income tax return, on the Part-Year allocation screen, manually enter the Virginia portion of W-2 income earned, while a resident of VA. Here's a few ways to do that:

Method 1: This is the simplest method of all and the most accurate if your income fluctuates from paycheck to paycheck.

Find a pay stub with the pay period ending around the time of your move. The YTD (year-to-date) amount on the pay stub is how much you earned while residing in your former state.

Method 2: This method is pretty accurate as long as your income is more or less the same from paycheck to paycheck.

Estimate the number of weeks/months you worked at that job while a resident of one state and divide it by the total of number of weeks/months you worked at that job to come up with a factor. Apply the factor to your total income from that job to come up with the allocation for that state.

For example, if you worked at that same job the entire year and moved in early May, you earned roughly 4 months' worth of income (1/3 or 33% of your total income) in your old state. Multiply the total income from that job by .33 to obtain the allocation for your former state. The remainder gets allocated to your new state.

Method 3: This method is the most accurate, but it also assumes your income is more or less the same from paycheck to paycheck.

First, find the Julian date of your move (also called an ordinal date). Search for Julian date in your favorite search engine.

• , if you moved on August 8, 2022, the Julian date is 220, which simply means August 8 is the 220th day of 2022.

Then divide your Julian date by 365 to come up with a factor, which should be less than 1. Apply your factor to the year's total income from that job to get the income allocation for your former state. The remainder is allocated to your new state.

[paulv7260]

Thank you very much HelenC12! I kind of was leaning toward method 1 but that seemed logical where, in the world of taxation, "logical" can be elusive.

Thanks again!

Paul