Worked as employee 75% of time in residence state & 25% onsite for company. Received severance in January. What state is severance reported as income?

[ududek]

Income 2017 and severance paid in 2018

[MichaelL1]

Is severance on a W-2 and does it show in boxes 15, 16 and 17 the state information?

[ududek]

box 17 shows amount of tax withheld

[ududek]

15 states total state

[MichaelL1]

Is that the state you are a resident of?

[ududek]

No, the taxes were withheld in the employer's state not the state of my residence.

[MichaelL1 · Accepted solution]

Ok, thank you for letting me know that severance income had employer's resident state taxes withheld.

Then right now you would have to file a non-resident return reporting this income (and taking credit for State taxes withheld).

Then you would file a resident return reporting all the income and taking a credit for taxes paid to then non-resident state (as long as your resident state has state income taxes).

The other option is to: Talk to employer asap and tell them to correct this so only taxes are withheld from the resident state where you reside due to primarily doing work from home.