W2 - shows 2 state wages (what is the difference ?)

[dmacjr15]

Does anyone know what the difference between the 2 state wages are on your W2 Box 15 ? I reside in CT but work in MA. Just trying to understand the difference as this does impact my MA and CT state income tax filings.

thanks

Dennis

[JohnB5677]

Yes, because you work and live in different state you could owe taxes in both, but you do get credit in your home state.

• If you worked in MA the entire time. All of that W-2 is taxable in MA.
• If you live in CT it is taxable there also; however,  you will get credit for the taxes you paid in MA on the CT return.
  • If CT has a higher tax, the full amount of MA will be applied and you will pay the balance of CT.
  • If Ct has a lower tax the MA tax will wipe it out, but you don't get a refund of the balance.

[dmacjr15]

@JohnB5677 

thank you for the clarification. so when I am filling out my CT state tax filing do I use the wage amount on the CT state Box 16 ? Or do I have to use the same wage amount for MA non-resident and CT resident. On my W2 the CT state wage in Box 16 is lower then MA ? Just trying to figure out what state wage amounts to use for each filing. --- Turbo Tax has me put in MA state wage Box 16 for MA and CT state wage Box 16 for CT ?

[JohnB5677]

I agree to post both CT and MA as reported in box 16 of the W-2. 

• If it is a relatively small amount it may be because CT allows some deduction that MA does not.
• Take a look at boxes 11 - 14 on the W-2
• It may be indicated in that area

[dmacjr15]

@AmyC 

Hello Amy

I saw an old post of yours helping someone out with a similar issue. wondering if you could opine on this 2 wages I have listed on my W2. not sure what to input into my CT or MA state returns. trying to make sure I list the right wage for CT and MA to ensure taxes are calculated correctly for each state and not get refunds I am not entitled too.

thanks

Dennis

[AmyC · Accepted solution]

W2s are handled very differently by each company and does require you to do some thinking.

For example: total income for the whole year for that job is $100,000. MA earned $60,000

The company may have put $100k for CT income or a portion of it.

For the program, you need to enter the correct MA income to complete the non-resident form.

For CT, you need to enter the remainder of the income.

In my example, MA $60k and CT $40k would be entered to get the right income totals to each state.

[dmacjr15]

@AmyC 

Thank you, super helpful and it is coming together now. In my case, 100% of my wage is earned in MA but I live in CT. I entered my W2 info into Turbo Tax exactly how my company listed it. I just looked at my CT tax return (CT1040-TCS) and it appears TurboTax listed my correct AGI on both Federal and CT, so I am assuming I am getting taxed correctly. Do you know if TurboTax knows this behind the scenes an populated my forms correctly ? I will update my MA non-resident state tax form soon, so I guess I just have to make sure my MA wages match the total MA wage I earned. If I do this, does this sound like I am correctly ensuring all state and federal forms are calculating the right taxes for me ? I think so after digging into this some more, but always helpful to bounce it off tax experts like yourself. --- Thanks again for the help. Appreciate the feedback.

[AmyC]

Since it is all MA income, you can look at your MA return and see the income and tax. Look at your CT return and see the same income and a credit equal to the lower of the CT or MA tax on the same income. You will see a form with the calculations as part of your CT return.

The program can't  calculate the tax credit properly without the right information so you must finish your MA before you can complete your CT. You may need to delete the CT - if it isn't flowing correctly.

CT even offers examples in their Special Notice.