Multiple states listed on w2

[Ambertomsullivan]

My husband works for a company out of Florida, we are residents of Georgia, he worked on a job site in Alabama last year.  As a result his W2 looks different this year- 2 pages,

Page one lists: TOTAL STATE in the box for employer's state ID no next to box 15.  This is on the Federal filing copy of the w2.

Next is an AL state reference copy and it lists AL in Box 15 and shows his state wages ( 522.85 ) and state income tax ( 19.43 )

Nothing for GA on this first page.

Page two is the GA state reference copy.  On this page of his w2 there is a GA state filing copy  with a lower wages and taxes ( 1002.13 ) and (21.04) and then there is a GA state reference copy with a much larger wages and taxes (117461.) and (6233.) 

In the BLUE ( top right section ) of this second page it lists out these figures and has:

NOTE: * adjustment due to reciprocity rules.

So I am confused as to if I need to file Alabama state taxes for him...I was able to figure out how to properly input the two different figures for the Georgia state income, and turbo tax is suggesting bases on my w2 that I MIGHT need to file in both Alabama and Georgia but not telling me for certain.   Any help would be greatly appreciated.  

[TomD8]

Since you are residents of GA, then ALL your income is taxable by GA, regardless of where it was earned.

Florida has no income tax, so there is nothing to file there.

AL can tax you as a non-resident on income earned from work performed in AL.  Since AL taxes were withheld on his W-2, you should file a non-resident AL tax return in addition to the GA return.

In TurboTax, be sure to complete the non-resident AL state return before you do your home state return, so that GA can credit you for the taxes paid to AL.

[Ambertomsullivan]

Ok thank you.  I guess I should have specified that I do know I don't need to file in Florida ( we are recent Georgia transplants from there ).  Last year was my first year needing to file state taxes.  I have already completed BUT not filed both our federal and Georgia state taxes- I skipped over the Alabama because I was going to need to buy an additional state filing for that and didn't want to do that until I knew for sure I needed too.  So- my question to you now is, Will that mess things up if I go back and start the Alabama state taxes now that I have already completed the Georgia?

[TomD8]

"Will that mess things up if I go back and start the Alabama state taxes now that I have already completed the Georgia?"

Yes, because the "other state credit" will be entered correctly only if you complete the non-resident state return first, before you do your home state return.

[Ambertomsullivan]

Suggestions on how to remedy that?  

[DianeW777]

No, it will not mess things up.  Once the nonresident AL tax return is completed you should have a credit for taxes paid to another state on your resident GA return.  The income taxed to AL and the tax liability in AL will be needed on your GA return. So if you already filed GA you may want to amend. If you haven't filed GA yet, use the information below to enter your credit before filing.

• How do I amend my state return?

The credit for taxes paid to another state on the same income is used on your resident state because they do not want you to pay taxes twice on the same income.  As the resident state all worldwide income must be included.

The credit for tax paid to another state on the same income will be the lesser of:

1. the tax liability actually charged by the nonresident state, OR
2. the tax liability that would have been charged by your resident state

[Ambertomsullivan]

Thank you.  Everything is done now... Cost me $70 between the state download and the efile charge in order to get an Alabama state income tax refund of $14.  They could have kept the $14!!