W-2's, Two States

Forum|Forum|2 years ago
March 7, 2024
7 replies
58 views

Hi, my son worked in Delaware for a couple of years and in June of 2023, he moved back to Texas. He did not change employers during his relocation. In February, he received two W-2's, one for the total 2023 income earned for both states and a second W-2 that shows only the income received while working in the state of Delaware. Is this normal to receive two W-2's like this? Also, how would the IRS see this? Thank you.

PS: Let me know if you need any additional information. Thanx.

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CatinaT1

Level 15

This can be common. I would assume the W2's are identical except for the state portions. Is that a correct assumption?

He will file a part-year resident return in Delaware and of course Texas has no state income tax.

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fasteddie577Author

Level 6

Hi, thank you for the reply. Yes, both are the same except that the income earned in Delaware. My son's last check stub for 2023 has a running total and it matches the W-2 that has the full year.

In regard to filing the state return for Delaware, do I only include only the wages earned in Delaware on the state return? If I enter the total 2023 wages he has a big tax liability, when I enter only the state of Delaware earnings it's basically a wash. Thanks again.

Hal_Al

Level 15

Q. Is this normal to receive two W-2's like this?

A. It's not "normal", but it is common. Apparently the software they use to prepare the W-2s can't handle two states on one W-2.

Q. Also, how would the IRS see this?

A. It depends on what was mailed to them. Most likely the 2nd W-2 was only sent to DE.

Just make sure you don't duplicate any amounts when you enter it in TT. Enter only one W-2. On lines 15-20, show the DE info.

ThomasM125

Level 15

Yes, the Delaware wages would be reported in box 16 on form W-2 entry, for state wages. As such, that will be the only income from the W-2 wages taxed in Delaware.

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fasteddie577Author

Level 6

Hi again, I noticed that the W-2 that is for the full year has a lower amount for the state wages earned and also has a lower amount for the state income tax paid. This doesn't seem right. Shouldn't the full year W-2 include the full year state wages and income tax paid while in Delaware? Let me know if you have any questions. Thank you for replying.