Company didn't change my address when requested

[mdykstra90]

We spent the entire tax year living in one state, however my company didn't change my address in their system as requested until a couple months later, so for a few months I paid taxes to the previous state and underpaid taxes to the new state. How do I enter everything such that I can recoup taxes from the former state and pay back the underpaid taxes from the first few months of the year? My company has pushed back on issuing a corrected W-2, but do I need to push this with them?

[BillM223]

The problem is that your company has already sent your withholdings to the "wrong" state. The only way to get such withholdings back is by filing a part-year return with the previous state (which you have to do anyway), showing that you don't owe as much tax as was sent to them.

You will have to pay the extra tax to your new state, and hope that there is not too much time before the previous state sends you a refund.

There is no automatic way to do this.

[xmasbaby0]

You can file a non-resident state return for the "old" state, and file a resident state return for the state you live in now.   Prepare the non-resident state first.   And going forward, make sure the employer is only withholding tax for the state you now live and work in.

[mdykstra90]

Thank you! So if my company won't issue a corrected W-2, can I manually adjust wages earned in box 16 to reflect that I did not earn any wages in the "old" state and earned all wages in the "new" state but keep the taxes paid in box 17 the same for both states such that we can make it clear that we owe to the new state and can recoup from the old state?

[DawnC]

Enter the W-2 as is.  Then when you go through the non-resident return, you will be asked what income belongs to that state.  When TurboTax asks about your wage income - allocate zero wages to the nonresident state.   TurboTax will show the amount on the W-2, enter zero when prompted.   This will generate the refund from the nonresident state.   

Your resident state will tax all of your wages anyway, so no need to change the w-2.   

Why would I have to file a nonresident state return?

How do I file a nonresident state return?