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Has anybody using Alabama State Tax Return software run into a situation where the wages from the W-2 is a smaller amount that what was entered when doing Federal Taxes?

I did taxes for my son and the W-2 income appears to be $900 less than what is entered for the Federal Taxes.
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1 Reply
JohnW152
Expert Alumni

Has anybody using Alabama State Tax Return software run into a situation where the wages from the W-2 is a smaller amount that what was entered when doing Federal Taxes?

What you're seeing in TurboTax most likely reflects what's on your son's Form W-2.  It's not uncommon for state wages, shown in Box 16 of your Form W-2, to be different from the federal wages shown in Box 1. 

 

On your federal return, you generally include Box 1 of your Form W-2 as your wages.  See Line 1a, 

Total Amount From Form(s) W-2, Box 1 in the Instructions for Form 1040 and 1040-SR

 

Meanwhile, on your Alabama return, you use the Box 16 amount. According to the General Instructions for completing Schedule W-2 in Alabama's Schedule W-2 Instructions

You should use the amount shown in the box headed "State Wages" on your Form W-2. 

If this isn't what you're referring to, feel free to post back with more information.

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