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Level 4
January 21, 2026
Question

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

  • January 21, 2026
  • 12 replies
  • 159 views

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.

    12 replies

    rjs
    Level 15
    Level 15
    January 21, 2026

    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.

     

    Stevos555Author
    Level 4
    January 21, 2026

    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. 

    VolvoGirl
    Level 15
    January 21, 2026

    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.   

    SteamTrain
    Level 15
    January 21, 2026

    @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?

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    Stevos555Author
    Level 4
    January 21, 2026

    @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. 

    SteamTrain
    Level 15
    January 21, 2026

    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.

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*