Work in Two States - Total Wages not Matching State Wages on W-2s

[R2112]

I'm doing my daughter's taxes and have an issue...

She worked for the same company last year but in two different states (one state while home, the other while in school).  She received two W-2s in the mail from the company.  The first one has the Federal Reference and Filing copies, along with the State1 (home) Reference and Filing copies.  The second one has just State2 (school) Reference and Filing copies.  Both states have state income taxes.

All of the W-2s show the same amount ($2,094) in Box 1.  Box 16 in the State1 W-2 shows the same $2,094 (matching the Box 1 amount), but this doesn't make sense as she worked in State2 and had some earnings there.  Box 16 in the State2 W-2 shows $194 but, again, Box 1 on it shows $2,094.  As such, the software has thrown back an error noting the Box 16 amounts do not match the Box 1 amounts.  BTW, the Federal copies don't help as they do not list a state in Box 15 (noting "TOTAL STATE") and have Box 16 blank.

Do I simply deduct $194 from the $2,094 and say the State1 wages (Box 16) were $1,900?  That would seem to make sense but my concern is that she has a W-2 for State1 that shows $2,094 in Box 16.

Thanks!

[JohnB5677]

The first W-2 should be for her home state and the amount should equal box 1.

• 100% of income is taxed in the home state
• The second W-2 should be included on the posting of the first W-2.
• This should be for the non-resident state.
• The amount in box 16 will be less than box 1. 
• To balance the taxes out, she will get a credit in her home state for taxes paid in the non-resident state.

[R2112]

Thank you!  Yes, the first W-2 is for her home state.  I'm still a little confused on how I report the state wages though...

When inputting the W-2s into the software, do I put the $2,094 that is listed in Box 16 of her State1 (home) W-2 and then the $194 that is listed in Box 16 of her State2 W-2?  As I mentioned, when I do that, the software kicks back an error telling me that the (combined) State wages do not equal the wages in Box 1 (on any of the W-2s).  Or do I deduct the $194 from Box 16 of her State1 (home) W-2 (enter $1,900), and report/enter the $194 from Box 16 of her State2 W-2, so that the total of the State wages equals the amount in Box 1 ($2,094).

Hopefully my question above makes sense.

[JohnB5677]

The question does make sense, but the circumstance does not.

This may be an issue with the classification of the states.

• Back in My Info for your daughter did you enter her home state for the whole year, or only for a part year.
• It should be the whole year.  Time at school is temporary.
• Did you then say that State 2 was a part year resident.  That is wrong.
• She should show as a non resident.

[R2112]

Thanks again!  I just double-checked and I listed her as home state for the full year and non-resident for State 2 (i.e., I did not say that she was a part-time resident).

I'm still at a loss for what value I put in for her home state earnings as, again, the Box 16 on the W-2 for her home state says $2,094, which matches Box 1.  Box 16 on her W-2 for the state she went to school in says $194 but notes the same $2,094 in Box 1.  If I enter the Box 16s from each of the W-2s ($2,094 for the home state and $194 for the school state), the software is churning back an error since it is combining them and then noting that it does not add up to Box 1.

[DawnC]

Enter the W-2(s) exactly how it (they) reads - you can have 2 different states listed with the full box 1 income.  You have to mark the box that says she has other state income to generate the nonresident return and avoid W-2 errors.  

You need to prepare 2 state returns - a full year resident state return for her home state and a non-resident state return for her college state.  See the last help article below.   After you enter her W-2 on the federal return, prepare the non-resident (college) state FIRST.  During that state interview, you will be asked how much of the wages belong to that state.   Enter the amount* she earned in that state.   Then prepare her resident state return.  

Her resident state will tax all of the income, but the college state return will only capture *the amount you entered in the step above.  The resident state return will give her a credit for taxes paid to the non-resident state if you prepare the non-resident state first.   

Do I have to file tax returns in more than one state?

Why would I have to file a nonresident state return?

***How do I file a nonresident state return? - Mark the other state income box - she is a full year resident of her home state.