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Level 3
posted Jan 20, 2026 5:36:29 PM

State withheld from W2 box 17 does not transfer to state return

There is currently what I believe is a bug. The federal W-2 if completed via forms option for Box 17 should transfer to state return. However, its not transferring in this release.

0 12 1612
12 Replies
Level 15
Jan 20, 2026 6:18:13 PM

1. Make sure the two-letter state abbreviation in box 15 is correct.


2. Delete the W-2 and re-enter it using the Step-by-Step interview instead of forms mode.

 

Level 3
Jan 20, 2026 7:30:27 PM

That’s a bug you need to fix as direct entry into forms as opposed to step by step does not work. It worked since 1991 in all releases. 

Level 15
Jan 20, 2026 7:33:43 PM

No one else has posted about this.   Delete the W2 and enter it again manually.  Sometimes the import will import it wrong.   Oh what state?  Maybe your W2 has the wrong 2 letters for your state.   

Level 3
Jan 20, 2026 7:35:47 PM

The state is IL. Even when entering IL-WH form directly - nothing flows to IL 1040 witholding. These early releases are just buggy that’s all. Have to wait to mid Feb.

I am a tax professional and never use guide me step by step as it’s annoying. I have been using TT since 1991 (DOS days) so not a newb. 

Level 3
Jan 20, 2026 7:38:04 PM

Just escalate to product level 2 please. 

Level 15
Jan 21, 2026 4:59:03 AM

@Stevos555 

 

You should actually report this thru Customer Support, since it may not go anywhere in this Public Forum:

How do I contact TurboTax?

___________________________

 

@xmasbaby0   @TomD8 

 

I think Y'all work with Illinois, do you see this for W-2 forms?

Level 3
Jan 21, 2026 5:18:27 AM

@SteamTrain - called TT support,

waited on hold 45 min and told the rep about this. Her comment was to leave this on the community. I asked her to escalate to the “Bug” fix team. Not sure whether TT customer support will escalate. The workaround is to delete form input for box 17 and go into step by step mode to enter it as it has a pull down for the state. I think the lookup table of the state abbreviation is not yet linked from forms entry mode. 

Level 15
Jan 21, 2026 6:46:39 AM

Ahh, you used Forms entry, but the interview did work?

 

Dang....they've been re-writing the code for different sections each year.    Desktop has fairly low usage anymore  (some indications that it's ~10% of users but ~5% of revenue) , they may not be putting sufficient priority to the software staff assigned.  Those of us who use desktop, worry that they'll dump it as a product and go to all online

 

And yeah, I have issues with the way they rewrite each section they re-do.  Especially since they don't seem to troubleshoot those well before tax time.   Like this year, the charity interview appears to have been rewritten.  In addition to a significant "item" entry bug, the interview only allows one to enter a total for the year's cash donation for each charity...where they used to  allow one to enter (say, a scheduled quarterly donation) ) $150 at 4times/yr, or even separate $$ amounts at different dates.

Moderator
Jan 21, 2026 10:03:55 AM

Greetings @Stevos555,

 

Thank you for reaching out and sharing your experience.  Since it seems we’ve exhausted any known troubleshooting, we would like to investigate this issue further.  If you’re willing, we would like to ask if you could provide a Diagnostic File of your return.  This copy will be purged of all personally identifiable information.  If you are willing, please follow the instructions provided below to get us the information we need. Thank you! 

 

TurboTax Desktop

  1. Open your return. ​
  2. Click “Online” and select "Send Tax File to Agent". ​
  3. This will generate a message that a diagnostic copy will be created. Click “OK”. The tax file will then be sanitized and sent to us. This action will generate a Token Number
  4. Please respond directly to this message and provide the Token Number that was generated.

Level 3
Jan 21, 2026 11:31:04 AM

The latest update just went in. I tried a new return direct form entry and it works. The state box 17 flows into IL state return immediately post entry. Hope this is all solved. Will report back if it shows up again. Thank you all. 

Level 3
Jan 21, 2026 11:46:18 AM

Did not know TT desktop is being de-prioritized. I don’t know what I would do as I don’t like the online version. Hope they keep it or change the online version to have direct entry process. 

Moderator
Jan 21, 2026 12:17:59 PM

Thank you for your follow-up, @Stevos555. I'm happy to hear your issue has been resolved. If you run into other problems, please let us know. Thank you for being a long-time customer!