I received three w2s for work at the same company, but while living in three different states due to covid. I spent the first 3 months of 2020 in NYC, 1 month in Ohio and the remaining 8 months in Michigan which continues to be my permanent home in 2021. What is confusing to me is how the income was reported on the w2s, and how that translates to inputting the data correctly into TurboTax. NY is showing my full wages in box 16, Ohio is showing 70% of my full wages in box 16, and Michigan is showing 5% of my wages in box 16. The wages are opposite of what I thought they should read, and add up to more than I made. It seems I am either going to be double taxed on the income, or will contradict the info provided on each state portion of the w2s if I use one of the allocation of wages methods to correctly claim my earnings. By using the allocation method, it seems that I will get huge refunds back from NY and Ohio, but will owe a lot to Michigan as my resident state, which may also induce penalties. Am I looking at this correctly? Should I go ahead and use the allocation method which contradicts the reported state wages on my w2s?
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The best way to address this is to start slowly and move forward with deliberate steps.
NY requires all earnings be reported on their W2; the detailed math will work it self out.
The tax codes are written in such a way you will not be double taxed.
When faced with multiple state returns to file, always prepare your home state LAST, That is so you can claim any and all taxes paid to other jurisdictions on your home state.
Prepare the NY return first, then Ohio, and finally Michigan.
The tax returns will seek actual wages earned in the state as well as the W2 reported income to determine tax liability.
The best way to address this is to start slowly and move forward with deliberate steps.
NY requires all earnings be reported on their W2; the detailed math will work it self out.
The tax codes are written in such a way you will not be double taxed.
When faced with multiple state returns to file, always prepare your home state LAST, That is so you can claim any and all taxes paid to other jurisdictions on your home state.
Prepare the NY return first, then Ohio, and finally Michigan.
The tax returns will seek actual wages earned in the state as well as the W2 reported income to determine tax liability.
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