Same income reported by two states

[lapointejenna]

Were you a resident of both states during this year? Or are you a resident of one and a non-resident the other. If the second is true, then it should be fine to have reported income in both, but you should receive a credit for taxes paid in your non-resident state so you are not paying duplicate taxes. Make sure you answer the resident questions correctly. And if your employer has the wrong address of residence, that changes how they write up your W-2. 

[kongf2012]

The problem has not been fixed. I have to file by paper. I am a resident of MA and work at RI as a non-resident.

I have detailed steps in the thread how to reproduce the problem. The customer support should've created a ticket for the software development group to fix. But the company just does not care. Calling customer service did not help. Repeat. Calling customer service did not solve any problem! Just waste of time.

[aaamit9]

I have the same problem of duplicate wage, but for NY and NJ

[MarilynG1]

If you live in NJ but your wages are earned from a NY source, they are taxable in both states.

Your Resident State taxes all of your income, but gives you a credit for tax paid to to your Non-Resident State.  If you W-2 shows taxes paid in both states, you should come out ok.  

In your Resident State interview, watch for the screen about 'taxes paid to another state.'  You should see the amount of tax paid to your Non-Resident state filled in for you (from your W-2 entry).

Prepare your Non-Resident State return first, then your Resident State. 

Click this link for more info on How to File a Non-Resident State Return.

[aaamit9]

Thank you MarilynG1 for the reply.

I have already completed my resident state first and then the no resident state return, which duplicates my income.

How do I fix my problem.

[MarilynG1]

Yes, your Non-Resident state of New York will also tax all your income (as it's NY source income). 

You should break even with NY (your income was earned and taxed there appropriately) or owe very little.

Your resident state should end up taxing you nothing (or you may get a refund), since your income was earned in NY, and they give you credit for tax you paid on your entire income to NY. 

Basically you are earning income (and being taxed on it) in NY.  You are just reporting the income that you earned in NY to NJ (since you're a resident) and paid tax on to NY. 

Since we can't see your return in this forum, you may want to Delete your Resident State and prepare your Non-Resident State first, then your Resident state. 

[ponch]

@MarilynG1  The question is not about withholding taxes paid for the nonresident state. The question is about doubling wages in TT for the resident state. 

I live in MA and work in RI only. Let's say  I've earned 50 000.  I've paid taxes for both RI and MA on my W2. When I'm filling out my TT, no problem with RI (non-resident), BUT according to TT I've earned a total 100 000 for MA, like 50 000 from RI and 50 from MA.   So my wages were doubled. I didn't work in MA at all.   If I opt to report to MA only the correct number through TT ( but it's still looked like EARNED in MA), I'm not able to e-file MA taxes... although I pay for it. 

So the question is not about double taxation, the question is about doubling wages. How to fix it and report it

[RaifH]

If the wages for RI and MA are the exact same in Box 16, you can enter the MA wages as $0. You will still want to enter any Massachusetts tax withheld. Since MA is your resident state, it will still tax this income even though you are now marking it as earned in RI. RI gets the first crack at this income since it was sourced in their state. MA will provide a credit for the taxes you paid to RI and then tax you on the same income. If MA has a lower tax rate, then you will not have to pay any additional tax on this income. If the MA rate is higher you will have to pay MA more taxes because the credit will not be enough to cover it. 

@ponch

[ponch]

@RaifH The amount is the same.   There are 2 lines in section 16: RI and MA with the exact same # in each.   If I correct that number for MA, would I be able to e-file?  Is it legal to change ## from the official W2? Just  don't want to deal with an audit 

[DMarkM1]

For MA you can actually leave the box 16s just as your form W2 reads.  In the MA state interview "Update/Start" the adjustment section.  Continue through that interview to eventually arrive a page asking about your "W2 Wages" transferred.  Select "No" they are not correct.  Then on the next page select "Yes" only use the MA box 16 to calculate your MA taxes.  Finish the interview.

@ponch

[ponch]

@DMarkM1  I did. After that I've got "Not Eligible for Electronic Filing. You can print your Massachusetts return and file it by mail". Reason: Resident returns  with other state source income and only reporting MA  source income from form W2 box16

[FrankSTein]

You should still be able to efile. Just make sure the line is not empty and reads $0.

[AmyC]

Your MA error says not to file a return with other state income but only reporting MA income. Which makes sense. You want to report your RI income on your MA return. Your resident state automatically taxes all income. The federal and states have all received the same w2 forms. This is your chance to indicate what is correct and adjust your state w2 information. Normally, the RI income would be reported on the  RI non-resident state. If there is no MA  tax withheld, you can delete the entire MA line on your w2. As a resident state, it will pick it up anyway. Then, the wages should properly transfer into MA so no correction is needed.

@ponch

[bale11]

I also have the similar issue today...live in MA but work in MA & RI offices for the same employer. My employer has sent my two copies of W-2 that allocates the amount I earned in MA and RI, everything went smooth until I did the final review and 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"

I confirm 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. Should I continue submitting?

[AmyC]

It doesn't sound like your RI is properly showing on your MA return. On your w2 entry, you need to have RI as the correct amount for RI and MA as the remainder of the income earned. 

For example: $100,000 income with $55k earned in RI.

W2 shows RI  $55k, MA 45k

Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions to prepare the states in a special order. You may need to delete both states and begin again.

1. First, prepare your non-resident  RI return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
2. Then prepare your resident state MA return and it will generate a credit for your income already being taxed in the non-resident state. 
3. The credit will be the lower of the state tax liabilities on the same taxable income. You may owe your resident state,  if they have a higher tax rate along with differences in how the taxable income is calculated.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

View your forms and verify MA tax return shows all income earned and a credit for tax paid to RI.