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PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

My daughter moved to PA over half way through the year to start a job.  She has one w-2 from her PA employer.  The W-2 shows total wages in Box 1 and also the same total wages amount in Box 16 for PA with state income tax withheld.  There is also a smaller Box 16 amount listed with NC as the state but no state income tax withheld.   This is the part of her wages paid to her before her physical address changed to PA.  So, the employer is in PA and all taxes withheld were for PA.  On the TurboTax screen "Any special PA w-2 situations?" the box is automatically checked for "you earned income in another state".   We assume this is correct, but the next screen asks to prepare a w-2 additional information statement.  What would she explain here?  It's already on the w-2 showing both states.

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5 Replies
CatinaT1
Expert Alumni

PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

Did she work for the same company in two different states?

 

She will file a part-year resident return for each state. The income she earned while in living each state is considered that state's source income, regardless of where the employer is located.

 

Be sure to complete the state she moved from's return first and then the current state return last.

 

You should not need to prepare a W2 additional information statement.

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PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

She did work for the same company.  This is her first tax return and first job after college.  Her actual move to PA occurred and address updated for her employer shortly after starting work.  We did complete federal, then NC (the state she moved from), and now working on PA, so we are doing it in the correct order.  Is it correct that the previous screen "special PA w-2 situations" has the box checked for "you earned income in another state"?  I think it is.  

CatinaT1
Expert Alumni

PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

Yes, that should be okay if it was already checked. I just wasn't sure it wasn't asking if you earned income in another state while you were a resident of PA. 

 

This is because PA will tax all the income for the year (both states) and give you credit for taxes paid to the other state, so you are not double taxed.

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PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

Thank you.  It appears that all of the income was taxed in PA.  On the w-2, the total wages in Box 1 are equal to the PA amount in box 16 and had state tax withheld in box 17.  The box 16 amount for NC was much smaller with NO state tax withheld in box 17.  The next screen on Turbotax is PA smartcheck and shows errors.  It says "check this entry - schedule G/L (untitled): portion of tax by owner: owner portion of tax paid to this state -- is missing.  Enter taxpayer;s amount or a zero.   Portion of tax by owner ______"   I don't know what this is?  She is not trying to claim this credit.  

MaryK4
Expert Alumni

PA w-2 with 2 states listed but only one with state tax withheld, prepare w-2 addnl info statement?

If you are not claiming the credit, enter zero.

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