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New Member
posted Feb 20, 2025 8:24:46 AM

W-2 from 1 employer with 2 states

My employer gave me a single W-2 with "State wages, tips, etc." & "State income tax" listed for IL & NC. I lived in Illinois in 2023, not 2024, but my year-end bonus for 2023 (which my employer told me counts as 2024 income, since it was included in my first paycheck for February) was taxed for Illinois & North Carolina. But the "State wages, tips, etc." in box 16 for NC EQUALS the "Wages, tips, other comp." in box 1 (which I presume is for both states, since that box is blank on the other page). So when I enter box 16 for NC in TurboTax, am I supposed to enter THE DIFFERENCE OF box 1 and box 16 for IL?

0 3 2130
3 Replies
Expert Alumni
Feb 20, 2025 8:37:20 AM

No, go ahead and enter the W-2 as written.

 

You may have the opportunity in the state interviews to straighten things out.

 

Besides, when two states appear to tax the same income, they normally provide a credit to one state for tax paid to another.

 

In your case, enter Illinois, your non-resident state, first. Then enter your resident state (NC) last. The IL tax will show up as a credit on line 2 on the D-400TC.

New Member
Feb 20, 2025 8:40:00 AM

So, will I get the D-400TC next year? Because I'd never heard of that form before you mentioned it.

Expert Alumni
Feb 20, 2025 2:12:17 PM

No, you will get the credit on your 2024 return. Why did you think it would be for next year? What am I missing?