Our daughter moved permanently from California to Texas in August 2016, but her paychecks have had CA state income taxes withheld since. Can the W2 be updated?

[mfm-ca]

She is working for a temporary staffing company that was notified of her permanent out-of-state move for the end of August 2016, but they didn't process the request.  It appears they are acknowledging the mistake, and have indicated they will be submitting an updated W2.  The first thing our daughter noticed was the address on the W2 was for California.  The staffing company has already admitted this is incorrect.  I am hoping they can update the W2 to indicate the California state income earned for the year at the time of the move, and the excess California state income tax withheld would show up in her refund when filing her taxes for 2016.  Fortunately, Texas doesn't have state income, so there wouldn't be any issue of non-paid state income taxes.

[DanielV01 · Accepted solution]

You are correct.  She should wait until she receives the corrected W-2 before filing her California taxes.  She will be filing a part-year resident return for California so she will want the corrected W-2 that shows what she actually earned while working in California.  If they took out taxes on all of her income, then, yes, she should get a refund for being overwithheld.  And, since Texas has no state income tax, she won't have to pay tax on that income to another state.