If you live in one state and work in another (no income made in your resident state), should you still have a state wage on your resident W-2?

[glalata08]

Turbo tax is pulling both my resident and non-resident state w-2 for my resident state tax return, which makes my income double. How do I correct this on the website? There is no way of deleting the resident state wage (that I didnt make). I can only do % allocation or make the non-resident state wage non-taxable income to my resident state.

[SusanY1]

In most cases, you will still file a tax return with your resident state.  Exceptions apply if your resident state has a reciprocal agreement with your non-resident state.  After you complete your federal return, work on the tax return for your non-resident state first and then for your resident state.  TurboTax will work through the calculations to give you proper credit for living in one and working in the other.    

[glalata08]

Thank you for your response. I have filed my non resident state first and had to manually input my tax credit on my resident state. However it is still showing I owe money to my resident state because it said I made income in my resident state as well even though I only made income in my non-resident state. No one seems to know how to fix this issue on TT as I have asked this before and other people as well.

[CatinaT1]

This can happen if the state you were working in has a lower state income tax rate than the state you are living in.  I am guessing you are getting credit for taxes paid to another state for the taxes you paid to the non-resident state, however when they apply that credit to what your state would have taxed you on the income, it was not enough to eliminate any balance due in your resident state.