Incorrect Income Reported on W2 (Moved from One State to Another)

[aznjon623]

I moved from California (January to May) to Hawaii (June to December).  Hawaii will be my residence moving forwards.  I noticed that on my W2, the California and Hawaii incomes do not add up to the total federally taxed income:

Federal: $156085.64
California: $139030.48
Hawaii: $88646.68 

I think what happened was that my company thought I was still earning income in California because I didn't turn off my California withholding when I moved to Hawaii.  

I'll ask them to see if they can give me a corrected W-2, but otherwise, is there anything else I can do to get this fixed when I file my taxes?  

[Anonymous_]

....is there anything else I can do to get this fixed when I file my taxes?  

Just try to get that corrected W-2.

[Hal_Al]

Q.  Is there anything else I can do to get this fixed when I file my taxes?

A. Ideally, you get a corrected W-2. Lacking that, you correct the numbers at the W-2 screen, in TurboTax. Change the box 16 amounts to what you think they should be.  Leave the box 17 amounts as that's how much withholding was actually remitted to each state. 

The danger is that CA may question it.  I'm not specifically familiar with CA & HI taxes, but this is a common enough situation, that you will may not have any problem.

[ErnieS0]

As champ @Hal_Al says, your can correct your numbers and file. 

If you file your California return by mail you can include a statement explaining what happened. Your company may be willing to give you a letter if they won’t correct your W-2. You can also attach a copy of your Hawaii return showing how both returns include your total income.

Including a statement or Hawaii return does not guarantee that it will be read by California so don’t send original documents. 

If you get audited, you will have to show proof of when you moved to Hawaii and how much you earned in each state. Those numbers can probably be matched with year-to-date totals on your pay stubs for the last California pay period.

[aznjon623]

Hi all, Thank you for your advice so far. I did contact my payroll department and unfortunately, it seems like they are not going to help me, basically saying it was my responsibility to keep my tax information updated and that they do not print corrected W2s for this issue. I was reading that I can call the IRS for help if my employer does not send the corrected form by the end of February, and they would send me Form 4852. California has a similar form FTB 3525. It sounds like I have to go through this avenue, right? I do have my driver's registration, internet bill, car insurance that prove when I established residence...do you think that would be sufficient?

[Hal_Al]

Q.  It sounds like I have to go through this avenue, right?

A. No. That's a giant can of worms to open. 

Make the adjustment and just file.  Dealing with a (unlikely) letter from FTB is less hassle than a conflict with your employer and trying to get help from the IRS.

Besides that, you employer is most likely correct: this your mistake, not theirs. 

[aznjon623]

I don't think this would cause trouble with my employer (I work for a department in the federal government). I guess I rather explain myself beforehand, rather than answering to a California audit later. Additionally, I planned to mail in my CA 540NR, so I have to send them my W2 anyways, and I can't just change the numbers; I would think that would certainly set off some red flags, right?

[Hal_Al]

 Q. I would think that would certainly set off some red flags, right?

A. No more so than normal. The FTB already has the W-2 numbers in their computer. But, it's mostly box 17 that they match.