Two W2s for different states. Can I enter 0 for income earned in one state?

[danund1]

In 2021 I lived a few months in Connecticut, and then moved to NYC for last 3 months of that year. My job was always in NYC, but my employer only withheld 2021 CT state taxes. For my 2021 taxes, I declared New York as my residence and filed in CT as a non-resident. For the first month of 2022, my employer continued to withhold CT state taxes until I finally got it changed to NY in February. So my 2022 W-2 has 1 months worth of CT withholdings and 11 months for NY. For 2022, I will need to file again as a CT non-resident in order to try and get some that state tax money back.

Questions:
#1 In the Turbo Tax Personal Info / Other State Income section: How do I answer "Did you make money in any other state?" Do I answer "Yes" because my NY employer took out Connecticut taxes even though I never worked in Connecticut and was a NY resident for all of 2022? Or do I answer No, since technically I only made my money in the state of New York? If I answer "No" then how do I file with Connecticut?

#2  I received 2 W-2s, one for each state.  CT boxes 16 (state wages, tips,etc) show my wages for January and the taxes withheld in box 17. For the NY W2, boxes 16 & 17 have the earnings/taxes for the other 11 months.
The Help section (https://ttlc.intuit.com/turbotax-support/en-us/help-article/printers-printing/file-nonresi[product k...) says to "enter 0 for the amount of income earned in that state" to get a full refund. Can I do this even though box 16 on my W2 shows a positive number??

Thank you

[Hal_Al · Accepted solution]

Q. "Did you make money in any other state?" Do I answer No, since technically I only made my money in the state of New York?

A. You answer No.

Q. If I answer "No" then how do I file with Connecticut?

A. You file a non resident CT return to get a refund.  You may want to considered mailing in your CT return, so that you can attach an explanatory statement.

Q. The Help section (https://ttlc.intuit.com/turbotax-support/en-us/help-article/printers-printing/file-nonresi[product k...) says to "enter 0 for the amount of income earned in that state" to get a full refund. Can I do this even though box 16 on my W2 shows a positive number?

A.  Yes. It's a workaround to get the info on the CT return.  On the CT line, put CT in box 15, 0 in box 16 and the CT withholding in box 17.  On the NY line, add the CT box 16 amount to the NY amount (assuming the  NY box 16 didn't already have the full year amount). 

[danund1]

Thank you for the very prompt and clear answer. For the CT tax return, can I complete the state return on Turbo tax (I already bought it) and just mail that in? Do you know if there is a section to include a statement that the tax was taken out in error? (i.e. worked and resided in NY for the full year)   

Thank you again

[Hal_Al]

Q.  For the CT tax return, can I complete the state return on Turbo tax (I already bought it) and just mail that in?

A. Yes.

Q. Do you know if there is a section to include a statement that the tax was taken out in error?

A. I'm not specifically familiar with CT software & forms.  But, apparently not, see https://portal.ct.gov/DRS/Individuals/Individual-Tax-Page/Nonresident---CT-Tax-Withheld-in-Error

[it appears that you should try to get a corrected W-2 (showing 0 in box 16)  from your employer]

[danund1]

First off, thank you so much for your assistance. I apologize for these lengthy questions.

This is a follow up on my previous questions.
Last month ago, I contacted my HR department to obtain a corrected W2. I requested that all my state wages be allocated to NY and income from Connecticut =$0. They refused, stating that since they weren't notified about my change in residence (long story about who is at fault) until February they did not do anything wrong, thus no W2c needs to be issued. I did not contact the IRS about this.

As you noted, if I change boxes 16 (for CT) and 18 (for NY -see question #3 below) there is no way to explain why my income on my tax return will not match my W2. I see form 4852 as a way to notify the IRS that I had tried to obtain a W2c however, my employer will still argue they weren't notified about my residence until February.

Questions:
1. Should I even file form 4852 for this issue, especially since this is really a state issue.
2. If I do need to file the 4852, do I send a copy to NY and CT?
3. On my W2, the NY Local Wages & Tips (Box 18) does not equal NY Box 16 (State wages). The difference is the amount in the Connecticut Box 16.
3a) to confirm the changes I need to make: In Turbo Tax, set CT box 16 =$0; set NY box 18 = NY box 16 (making NY State = NY Local).
3b) the followup Turbo Tax screen asks if I have any "uncommon situations" however none of them really pertain to this issue (the info on my return will not match my W2) - thus do I leave them unchecked?

Again - THANK YOU SOO MUCH for your help.

[DMarkM1 · Accepted solution]

1. Should I even file form 4852 for this issue, especially since this is really a state issue.  No, you do not need to complete a form 4852 to allocate wages to states on state tax returns. 
2. If I do need to file the 4852, do I send a copy to NY and CT?   See answer 1 above.
3. On my W2, the NY Local Wages & Tips (Box 18) does not equal NY Box 16 (State wages). The difference is the amount in the Connecticut Box 16.  Since you lived and worked in NY the entire year the NY box 18 should match the NY box 16.  
3a) to confirm the changes I need to make: In Turbo Tax, set CT box 16 =$0; set NY box 18 = NY box 16 (making NY State = NY Local).  Yes. Also NY Boxes 16/18 should be the total of current NY box 16 plus CT box 16.  
3b) the follow up Turbo Tax screen asks if I have any "uncommon situations" however none of them really pertain to this issue (the info on my return will not match my W2) - thus do I leave them unchecked?  Correct none apply to this situation.  

[danund1]

Thank you once again for your prompt and very concise answers!!