Incorrect State on current W2, also on prior year w2

[mviglianco]

In doing 2018 taxes in Turbo Tax I notice my state is incorrect. Checking my prior year W2 it was incorrect.  I filed NC and payed NC despite KY being listed on my W2.

What does this mean and what should I do? I'm curious how TurboTax doesn't flag this discrepancy when filing. I assumed the checks it was performing were for things like this. I simply missed this last year.

I'm just not sure how to proceed with both current year and what to do about previous year. Does this literally mean that KY with held state taxes but then NC accepted a tax payment? 

[NCperson]

I assume you live and work in NC ... if this is not true then the advise below is not right

When you completed the 2017 tax return and keyed in the w-2 did you type in NC or KY for state withholding? If you typed in NC that is why TT did not flag anything; how would it know?

You would have to submit a 2017 tax to WV return showing no income and the withholding so that you get that money back

Then submit a amended 2017 NC form because you will owe NC The money that WV now has

[mviglianco]

Thanks for the response.

I would not have keyed anything. It would have been automatically imported and the W2 shows KY

I should have noticed this....BUT I'm not sure how they would not notice KY state witholding on the W2 but me filing a NC tax as I always have.

Can TT help me with this (for whatever upgrade cost) or am I better off getting a tax professional to do this? I'm out of the country until May at the earliest so I'm trying to figure this all out ASAP for whatever it takes to get cleared up.

[mviglianco]

Also, should I go ahead and try to get a corrected W2 for 2018? I don't understand the significance of that KY on my W2.  Has the withholding been designated to KY the entire year and it's too late?  Would that have needed to be corrected before the beginning of 2018 for this to be a non issue for 2018?

[NCperson]

please reconfirm that you did not work or live in KY

look closely at the W-2 from 2017 (the paper copy) ....what is in Box 15 and what is in Box 17? 

what about for 2018?  how many states are listed? 

let's start there.

[mviglianco]

2017: Box 15: KY  Box 17: a $ value

2018:  Box 15: KY Box 17: a $ value

My employer is in KY, my residence is NC. My address is entered as KY on the W2 but I was oblivious to this and filed NC state like I always have. There was a brief time I was away from the company and it seems to have changed when I returned to employment.

Only one state listed on either W2 and that is KY.

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@NCperson wrote:

please reconfirm that you did not work or live in KY

look closely at the W-2 from 2017 (the paper copy) ....what is in Box 15 and what is in Box 17? 

what about for 2018?  how many states are listed? 

let's start there.

---

[NCperson]

okay, what that should mean is your employer sent the amount in Box 17 to the State of KY.  

Now, go look at the NC state return from 2017 and look at the withholdings listed on Line 20a ; what is there? Can you determine where that number came from (other W-2 most likely if there were any) I would expect what is on that W-2 from KY is NOT there.  and did you owe a lot of $$$ to NC last year? 

[mviglianco]

20a does not have anything, $0

 I was only employed a few months at the end of 2017 so my NC payment wasn't large....like $319 so it didn't stick out to me. 

[NCperson · Accepted solution]

here are recommended steps to correct this

1) call your HR department asap and correct so they are withholding NC taxes going forward.

2) for 2017, your NC taxes are correct so nothing to do there.

3) for 2017, you'll have to file a WV return to get back the money that is listed on that 2017 W-2.  if you only worked at this company for a short period of time, then maybe it won't be worth it to you.  

4) for 2018, what is going to occur is that you'll have to complete both the WV and NC state tax forms.  I suspect it will show you owe a lot to NC and get a big refund from WV

5) for 2019, you'll have to do the same thing again (file both states) because there is money being withheld by WV that should be withheld to NC.   Ask your HR department if they can make an adjustment back to the 1st of the year - maybe you will get lucky.

hope that helps! 

[mviglianco]

It does help. Thank you.

Owner is having the accountant take care of it. They were both busy or traveling so not able to respond quickly. It was helpful for me to wrap my head around it.

[PepeGuitar]

You must tell your employer to issue W-2C, correcting the errors in your original W-2's, It's the only way.