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That indicates your employer is not withholding tax for both states--only one. What states? Some states have reciprocal agreements. Tell us more so we can figure out what will help you.
You need to enter your W2 exactly as it appears. Some states have agreements with neighboring states where the employer withholds for the state you live in and you are not required to file a return. For example, PA and NJ. You only file for the state you live in. If you would like to respond with what state you live in and what state you work in, we can be of further help.
some states have a reciprocity agreement whereby you only file in your resident state. see the link. if not, your w-2 is probably wrong in that it should show the state you worked in. taalk to your employer. technically, in most cases, you need to file in two states. your work state (but only if it has an income tax)
Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have income tax.
In addition, New Hampshire and Tennessee don't tax wages or earnings.
you also file in your resident state and get a credit for taxes paid to work state,
https://www.thebalance.com/state-with-reciprocal-agreements-3193329
@kwithrow93 - What are you saying; your employer withheld for the 2nd (work) state, but it doesn't show on your W-2? That's unlikely.
As others have said, we need to know which states. Most likely your W-2 is correct and you only need to file in your home state.
In the personal info section, when it asks if you made money in another state, answer NO, per the reciprocal state instructions, on that page. This will prevent TurboTax from thinking you need to file a return for the work state.
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