Live in AL work in TN - error code AL40-050 ?

[emilyharris904]

My Alabama state return was rejected with error code AL40-050: This return could not be processed for electronic filing by the state. Alabama Department of Revenue has returned the file with the following message: "Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. Note: plus/minus +/- $3.00 variance allowance has been added to allow for rounding errors.

I'm wondering if the error has something to do with my situation -- I live in Alabama, but work out of Tennessee. I entered everything exactly as it appeared on my W2. My W2 has boxes 15-20 blank, so I left the corresponding boxes in TurboTax blank as well. Should I instead have entered my Tennessee wages there, as Alabama wages?

[JamesG1]

Do you have only W-2 income?  It sounds like you had no state income tax withheld of any kind withheld on your W-2's?  is that correct?

AL has a claim on all your income, even what you earned in TN.  Under My Info, you should list AL as your Resident state.  Under your state return, you should file an AL Resident tax return.  There will be no TN tax return.

Make sure that the TN income makes it to your AL tax return.  I do not think you will, but you may have to make the changes that you talked about on lines 15-20 of your W-2.

To view your state tax return, follow these steps.

• Down the left side of the screen, click on Tax Tools.
• Click on Tools.
• Under Other helpful links, click on View Tax Summary.
• Down the left side of the screen, click on State Tax Summary to see the actual tax return that you prepared.
• Down the left side of the screen, click on Preview My 1040 to see the actual tax return that you prepared.
• Down the left side of the screen, click Back to return.

[emilyharris904]

Hi James,

Thank you so much for your response! I only have W-2 income, and it doesn't look like any state income tax was withheld -- only federal.

AL is already listed as my resident state under My Info. I don't see any options under State to bring my TN income into my AL return. So I'm still thinking I will need to enter my TN wages as AL wages under the Federal section in TurboTax, even though it won't match my W2. What are your thoughts?

Again, I really appreciate your time and advice!

Best,

Emily

[AmyC · Accepted solution]

Please go back and add your TN wages in the bottom of the W2. Use the federal ID number for the TN ID.

You could not have a correct AL ID number for your TN job. AL should be taxing all income without your having to do that. Once you pick resident for the state, all income should automatically go on that state return. 

Your error means AL wages plus out of state wages. By adding TN on your W2, this should solve the problem.

:"Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. 

[Powell415]

So my situation is pretty similar.... I did earn some income in Alabama, but was mostly earned in Tennessee. This gave me a W2 for Alabama and for Tennessee. When I submitted my Alabama taxes, they were returned with the same error as listed in this thread. So am I just going into my Tennesse W2 and adding basically the State box and ID number?

[bayleeholt2019]

Can you please tell me how to go about fixing my return? I got this exact code and tried to fix but not making any progress.  

Thank you for all your help! 

[TiffanyL]

Please go back and add your TN wages in the bottom of the W2. Use the federal ID number for the TN ID.

You could not have a correct AL ID number for your TN job. AL should be taxing all income without your having to do that. Once you pick resident for the state, all income should automatically go on that state return. 

Your error means AL wages plus out of state wages. By adding TN on your W2, this should solve the problem: "Total Alabama Wages, Form 40 Pg. 1, line 5, must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. 

[bayleeholt2019]

I went back to the W-2 portion but TN does not show up in the state code drop down menu.  Am I doing it at the wrong spot? 

[DMarkM1]

You are correct.  TN is not in the dropdown menu for the W2 because TN does not tax wages.  On your W2 AL should be the only state and the wages in box 16 should be the same as box 1.   

At the bottom of the "My Info" section be sure you have indicated that you did not earn income in any other state.  You do not need to file a return for TN.  

Be sure you have not indicated anywhere in the AL interview that you earned income in TN.  You only need to file an AL resident return with all wages and income reported to AL only.  Again the W2 state area should only have AL and the state wages should match box 1.  The state ID number can be the federal id number without the dash if there is not one entered.     

[bayleeholt2019]

Thank you! I appreciate your help! 

[JohnHornbuckle]

I, too, am having my state return rejected with this error--undoubtedly due to my having a W-2 from Florida in addition to Alabama.

Do I correctly understand that I shouldn't be reporting the Florida income on my Alabama state return? That doesn't sound right--I feel like I'm probably misunderstanding the solution here.

[LenaH]

No. If you live in Alabama, all of your income (no matter where it is earned), gets reported on your resident return.

As quoted from a previous post above, Total Alabama Wages must equal the total amount of all State Wages (including Wages Earned Out of State) as reported in Box 16 of the Federal 1040 W-2. 

The first thing you want to do is make sure you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state is selected from the drop-down.
4. Select Continue to return to your Personal info summary.

Now, what does your W-2 state? Is there anything in Boxes 15-17?

If not, then choose Florida in the dropdown box (Box 15) and enter their federal payer ID (as shown in Box b). Then, add your wages in Box 16. This will fix your error and you will be able to refile your return.  

@JohnHornbuckle

[olivia-l99]

Amy, I am having the exact same problem with my return except I worked in FL not TN. So you're saying on my W2 from my FL job in Box 16 I should add what is in Box 1 on that same W2? I am young and this is my first time filing so if you could be very specific I would really appreciate it. 

[LenaH]

Yes. Since your W-2 does not have anything in Box 15-17, you must enter something in these boxes so your Alabama wages equal all your state wages (including your out of state wages). 

Please choose Florida in the dropdown box (Box 15) and enter their federal payer ID (as shown in Box b). Then, add your wages as shown in Box 1 in Box 16.

This will fix your error and you should be able to refile your return. 

@olivia-I99

[olivia-l99]

That worked! Thank you so much!