Same income reported by two states

[bale11]

Thanks for reply! Here is how my W-2 looks like...so there are two copies, the first copy has every box filled out and box 15 is MA. The box 16 shows the same amount as box 1 (which I beleive box 1 is federal taxable income).

The second copy, however, leaves everything blank except box 15 -17, and box 15 is RI. Becuase I live in MA and work in both MA/RI for the same employer, the box 16 of this copy records tax payable to RI.

Now when I file it in TT, I firstly filed out RI state tax and saw a credit, and then I filed MA tax return. TT automatcially added the box 16 of both copies (let's say, MA box 16 is $75k, RI box 16 is $15k, now it think MA income tax is $90k). I then I selected  Select "No"on whether my "W2 Wages" transferred.  Then on the next page select "Yes" only use the MA box 16 to calculate your MA taxes. Then it shows the correct numbers.

However, when I do the final review, I got this message: "reason for e-file ineligibility: resident returns with other state source income and only reporting massachusetts source income from form W-2 box 16" and it asked me to paper file MA tax return. But the numbers are all correct and correspond to my W-2 numbers. Should I ignore and continue with e-file?

[MarilynG1]

Since you are a Resident of Massachusetts, all of your income is taxable there, so in your example, yes, 90K is your taxable income in Massachusetts.

However, since you paid tax on 15K of that income to Rhode Island, MA gives you a credit against the tax you owe on your 90K for the tax paid to RI.

So your MA return should  show 90K income, with the amount of MA tax you paid on your first W-2, plus the RI tax as a credit for 'tax paid to other states'.

Your RI Non-Resident return will show only the RI income and only the RI tax paid, which you may get refunded.

Here's more info on How to File a Non-Resident State Return. 

[bale11]

Thanks. On my end-of-year payslip it explicitly listed two lines of "State taxable wages - MA". One is 60k , another is 15k (which = RI taxable wages).

None of the calculations will get to that 90k, as that's way over total income I have earned. I feel like the 75k for MA and 15k for RI is allocated correctly, but the only thing is I'm getting that

"reason for e-file ineligibility: resident returns with other state source income and only reporting massachusetts source income from form W-2 box 16"  TT tells me to paper file MA tax return, but if I continue, it seems I'm still able to e-file it, should I procceed?

[AmyC]

You need to edit your w2 in the federal section. The MA wages need to be listed as 60k. The program does pull over the RI wages and then the program will have matching numbers for you to efile. The states already have the w2 and you have the pay slips. You need the program to work correctly so that quick change will solve the problem.

@bale11 

[ashwinreddy]

I have the same issue here and unable to e-file MA tax return.

My W2 has the following info

CA.    $5000.    Travelled to CA for 2 days

MA.   $100000

NY     $100000. Travelled to NY for 2 day,  But NY uses the my whole wages in MA

Should I change that something like

CA. $5000

MA $95000

NY $5000

To address this

[AmyC]

Yes, your NY should be the actual NY amount, same for CA and then MA is whatever is left over from the total income.

[aaciii]

Its obvious to me that many of you having this issue work at a large drug store chain located in RI.  They prepare their W-2's incorrectly, and have done so for some time.   

In my case, I live in MA and work in CT.   This employer lists the same income twice on their W-2, once for your home state, and again for the state you work in.  TurboTax will add them together on your home state return (MA in my case).   TurboTax is working correctly - it's the W-2 that is incorrect.   You have two options:

1.  If the amounts in box 16 are the same, simply do not enter the line for your home state in TurboTax.   MA will tax all of the income from the non-resident state, which is correct, and should represent all of your income.  And you will get a credit for taxes paid to the non-resident state.

2.  If the amounts in box 16 for the two states are not the same (usually, they should be the same) - then your W-2 is potentially wrong (this has happened to me, where they forgot to include stock vesting in my home-state income, but did include it in my working-state income).   You will need a new W-2.

[Ken127]

I have been dealing with this issue for several years, for a MA full year resident, and never have been able to efile the MA return.  I've manipulated box 16, and made other changes to try to get it to efile, but no luck.  Using TT desktop, and MA resident return info is entered last.  I was hoping to get the MA efiled this year, but it still says I must paper file TY2024 MA return.   I've read thru all the posts above on this topic and have not yet been able to solve my problem.    

Here's the details.  Taxpayer (family mbr) is a full year MA resident.  Worked in CO, OH, NY, & MA.  Have W-2s for all 4 states.  With sample numbers -  CO box 16 says $1K (is correct).  OH box 16 says $12K (is correct).  NY box 16 says $75K (incorrect as that is the full year gross).  MA box 16 says $75K also (incorrect as that is the correct total gross wages for all 4 states).   Correct earnings per state are - CO-$1K, OH-$12k, NY- $20K, MA-$42K.   If I enter the W2s as printed, the first thing that happens is that TT desktop reports the total income as $150K, which is double the correct $75K.   I've been able to resolve that back to the correct $75K - don't recall how.  But that's behind me now.   Can anyone advise on how to get the data entered correctly to allow MA efile?  I have not yet manipulated any box 16 info for this TY2024 return, as I don't think I should be doing that.  

TIA!  

[aaciii]

You have two options to e-File.

1.  Don't enter the MA line at all.     I have filed several years returns simply by not entering a row for MA.   This option probably doesn't work if you have MA withholding in Box 17 however as you want TT to have that figure.  

2.  Make Box 16 for MA $0.   That is fine because MA taxes all of your income from all states anyway.   Your Federal income will be used.

[AmyC]

Everybody on the thread needs to realize that the IRS and all of the states have already received the w2. They know the numbers. The program does not go to the state and IRS, only the actual tax forms. You need for your tax forms to be correct.

The w2 entry is your place in the program to enter the information to get to your tax form correctly. You should change box 16 in the program, which has nothing to do with your taxes, it is just a place to move things around.

Enter all the other state income. Then MA can be the leftovers. If there was no state tax withheld, you could leave it blank.

CO $1,000

OH $12,000

NY $20,000

MA rest of income

Your income will be correct on the tax forms and you can e-file.

@Ken127 

[Ken127]

Thanks for the replies!  Very helpful, as I now know to change the state box 16 amounts to make them accurate.  (Had to do so for NY & MA).  I made the MA income amount equal to the gross wages amount less the CO, OH, & NY wages.  ie the net amount or "leftovers."  This allows me to complete the final, MA return, without a warning mid way that it must be paper.   But, final check/analysis still mandates a paper return. 

Here's the message I get. 

"Not eligible for electronic filing.  Reason for e-file ineligibility.

Resident returns with other state source income and only reporting MA source income from Form W-2 box 16."

This seems to imply that I must put the total 4 state wages in MA state box 16?

Suggestions?  

[aaciii]

You need to answer "no" to the state interview question about TurboTax only reporting income that is attributed to MA.    Since you have allocated all of your federal income across the states, TurboTax needs to add it all up.   If you say only to include MA income then it is not getting all the other states' income onto your MA return, which is a no-no.   MA taxes income earned in all states.    You then get a credit for taxes paid to other states.

[Ken127]

That was the fix.  Thanks for all the great advice!