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df-pdx-mdw
Returning Member

W-2 Box 16 Mystery

I am an IL resident but worked for most of 2020 in Oregon (living there at a temporary address).  While living in OR, I worked as a contractor for a company based in Wisconsin.  I worked with this company from July 2020 to December 31, 2020.  Taxes were taken out of my paychecks for Oregon when I was living there from July to October, but then I moved back to Illinois in early October. I alerted my employer about the move and they started taking state taxes out of my paychecks for Illinois from early October to December 31st.  

 

My trouble is Turbotax won't let me file electronically because of something it's perceiving as an error.  

 

Box 17 on my W-2 showed that state taxes were taken out for both OR and IL (the amount of OR taxes was greater due to the fact that I lived there longer in 2020).  

 

Box 16 lists all of my earnings for the year under OR and listed $0.00 earnings under IL.  When I try to file my taxes in Turbotax, I get the error message saying my "Illinois withholdings were greater than 20% of IL wages." My IL wages were reported as $0.00 and it asks me to correct the error.  But according to my employer, "Illinois requires that wages not be reported in Box 16 on Form W-2 for employees who reside in Illinois and work 100% of the year in a non-reciprocal state." My employer assured me that I am in compliance as far as my W-2 goes, but I can't file in Turbotax. Can anyone PLEASE help me out here? Thanks!

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1 Reply
DanielV01
Expert Alumni

W-2 Box 16 Mystery

In this case, mail in the Illinois return.  It may take a little longer to process, but it will be the easiest way to resolve this.

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