Wages form w2 - Should Box 16 have $0 and Box 17 still have the withholding if no work was conducted in that state, but tax was withheld?

[ehann5]

Ex. Total Fed. Income earned $10,000, State of employment has $10,000 in Box 16 and has withholding.  A second W2 was issued for State of residence with $7,000 in Box 16 and has withholding.  No work was conducted in the State of residence, but tax was withheld.  Should Box 16 have $0 for Box 16 and still have the withholding in Box 17?

[DanielV01]

It depends, but it's probably correct.  Both states likely tax you.  (But please comment the two states so that we can give further clarification: there may be special circumstances).  Your resident state taxes all of your income regardless of where you earned it.  Your nonresident state taxes income earned in the state.  Your resident state will give you a credit for the amount of tax you must pay to your nonresident state on that double-taxed income, but if the nonresident state has a much lower tax rate than your resident state, then the amount of the tax credit will not cover your resident state's tax liability, and the additional withholding will cover the shortfall.

Having said this, please feel free to comment the states, because there's probably additional detail that I can provide you with that information.

[ehann5]

All work the total $10,000 was conducted in CT.  MA tax was withheld in addition to CT so that estimated taxes didn't have to be paid to MA (state of residence).  I am aware that both states will tax, but the way the W2s are displayed, TurboTax has it showing $17,000 of income for MA.

[arizzzzzo]

Hi! What do I do if that box is empty? One W-2 with two states listed, New York and Maryland. New York line is filled out fine but for Maryland only boxes 15 and 17 are filled out, however, with 16 blank. Do I simply need a corrected W-2? I have a hunch my Employer accidentally has me down as a MD Resident, when I am a resident of NJ instead (my mailing address is MD which is probably the mix-up).

[xxxxyyyzzz23]

Hi I have a similar situation. I have worked in california and received two w2 forms from my employer one for CA state and other for MA state which is my resident state. I have fed income and tax mentioned in my CA w2 form and CA wages in box 16 of the same w2.However I have not earned any wages in MA but I was taxed for being a resident. in my MA w2 box 1 and 2 are empty , but box 16 has the wages mentioned for which I was being taxed by MA and I have my taxes mentioned in box 17. when I file my taxes using turbo tax for MA state , the software adds up the income from box 16 , and my total wages show more wages then what  have actually earned.I am facing trouble filing my MA return. please help how can I sort this issue out 

[JotikaT2]

It depends.

Are your wages from the same employer?

If so, you mentioned that you have no wages listed in Box 16 as being from MA sources?  Is this correct?  Do you have any MA withholdings listed in Box 17?

If all of the information is the same on the federal totals, Employer Identification Number, etc., you can just add the lines for the state portion.   

To edit your W-2 information, go to the Federal section of the program. 

1. Select Income & Expenses
2. Select Job (W-2)
3. Click Edit/Add to the right of the Job (W-2) 
4. Select Edit  for the applicable W-2
5. If you have a duplicate W-2 for the MA form, delete that input so all of the wages are only reported on one section for the same employer

Just make sure the total of all the state lines equal the total of the federal wages to ensure you are reporting all of the W-2 income.  You will see the input on your W-2 section under boxes 15-17.  You can add the rows for each additional state as needed here. 

[enriqueb05]

Yes, what do I do if my tax return says my state employer listed 2 states FL and NJ, when I work in NJ. Listed my wages for NJ in Box 16 and then the state income tax in Box 17, but for FL, they listed no wages for Box 16 and listed state income taxes from FL when I did not work in FL? 
The system won't allow me to file the tax without listing an income in Box 16, so how should I proceed? 

[DoninGA]

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@enriqueb05 wrote:

Yes, what do I do if my tax return says my state employer listed 2 states FL and NJ, when I work in NJ. Listed my wages for NJ in Box 16 and then the state income tax in Box 17, but for FL, they listed no wages for Box 16 and listed state income taxes from FL when I did not work in FL? 
The system won't allow me to file the tax without listing an income in Box 16, so how should I proceed? 

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Florida does not have a personal income tax.  When entering your W-2 leave boxes 15 thru 17 blank (empty) where it shows Florida on the W-2 you received.