My husband and I got married in December 2021 and he moved from New York to Ohio with me in late December. He worked in Ohio from January-May of 2022 and then we moved to Tennessee and he has worked in Tennessee from June 2022-Present. His W2 says he earned income in New York and Ohio and doesn't mention Tennessee (which doesn't have state income tax). Why is this? Is that correct? When we tried to file it gave an error because it shows no income in Tennessee even though that is where we lived. Do we need to get a corrected W2?
Your husband moved from NY to Ohio but did he keep working for a job in NY? If not, perhaps he received post employment pay, vacation, stocks, etc.
The w2 should show the income earned from NY and Ohio. TN would not be in the state section. Perhaps your husband did not notify work that he was moving so the accounting department has dates and addresses confused.
If your w2 is actually wrong: You can get a corrected w2 reflecting the correct wages for each location, that would be ideal. Otherwise, you will need to piece together your proof to show what income was earned when and where. You can adjust the state information on the w2. The federal and states already have their copy. You need to enter the correct information and then allocate in the state returns. You want your return to be accurate and to have the proof, if asked.
I am going to assume that he worked for the NY job throughout the year. In that case:
The w2 is probably correct.
See How are you taxed as a nonresident or as a part-year resident of NY?
If you were a nonresident of New York State, you are subject to New York State tax on income derived from New York State sources.
If you were a resident of New York State for only part of the tax year, you must pay New York State tax on all income you received while you were a resident of the state and on income you received from New York State sources while you were a nonresident.
To determine how much tax you owe, use Form IT-203, Nonresident and Part‑Year Resident Income Tax Return. You will compute a base tax as if you were a full-year resident, then determine the percentage of your income that is subject to New York State tax and the amount of tax apportioned to New York State.
Then Ohio would allow a credit for tax paid to NY.
TN has no tax so only NY is taxing the TN income.
Please reply if you need more help since I was assuming.
Hi, he did not work for the job in New york during 2022. He transferred within the same company to a branch in Ohio, and then transferred to a new branch in Tennessee. Sorry, I should have specified that. However, he did take a small amount of vacation time at the beginning of 2022 that probably would have been associated with his branch in New York, but I believe it was unpaid.
You husband will file a part-year resident state tax return for Ohio and a non-resident tax return for New York since he didn’t live in New York last year. Do not modify what is on his W-2 when you enter it. When you prepare each states tax return, you will be able to allocate the income for each state. Make sure that your husband notifies his payroll department to stop all state withholding since he currently lives in a state without state income tax.
Make sure that you answer the questions in the Personal Info Section correctly regarding the states that you live in to ensure that you prepare accurate state returns. Also indicate that your husband made money in New York. Please note, prepare the New York state tax return first followed by the Ohio state tax return. Be sure to indicate the dates that he lived in Ohio and allocate the income that was made in each state. For NY, allocate the vacation income he received (if no income, put $0). If the amount on the W-2 is incorrect for Ohio, calculate the income by how many months you lived in Ohio and enter that when the Interview Screen prompts you.
Please review the TurboTax article How do I file a part-year state return? and How do I allocate (split) income for a part-year state return? Also, review the TurboTax Help article How do I file a nonresident state return?
These instructions are based on the information that you provided assuming your husband received vacation pay that was sourced in New York. If this post doesn't answer your question, please notify us again.
So his W2 says his entire income is New York State Wages - that can't be correct based on what you're saying because it's not vacation/stocks/etc?
It sounds as if the payroll department at his company did not change the withholding from New York, for the move to Ohio, or the move to Tenn.
If there was withholding to the state of New York, then he will need to file a Non-Resident return to have it refunded.
As per SharonD007 above, be sure the My Info section has checked that he made money in another state.