Will an incorrect address on my W-2 create a problem because it doesn't match my personal info in TurboTax?

[aazin]

I moved to IL from NY before receiving any income but the address on the W2 is out of date. What should I do in this case? The job is remote.

[ErnieS0]

Many people live and work in different states or move. The address only matters to you and your employer. The address shown on Form W-2 is where your employer will mail the form.

You can always ask your employer to send you a corrected W-2 with your current address.

IRS matches Form W-2s against Social Security numbers. States are only worried about what’s being reported in Boxes 15 (state), 16 (state wages), and Box 17 (state income tax withheld).

How you will be taxed depends on what’s shown in Boxes 15-17.

If all the income was earned in Illinois, then it is taxed by Illinois. If you are still working for the same New York company, it’s possible you’ll owe tax to New York because New York has a convenience of the employer rule, meaning if you are working remotely for your own convenience, New York may still be able to tax you.

Each situation is different. We’d have to know more about your remote situation to tell you if it appears you are being taxed correctly.

[aazin]

That's correct. I work for a NY company remotely from IL. I have been in IL since the start of employment. However, they have a NY address for me on file which I provided before I started my employment (they wanted something to put in the forms and send the necessary equipment before the start date. I was in NY at the time).

I have also heard of this convenience rule and it does apply to me. Meaning, the employer has not required me to work remotely and I am doing it for my own "convenience." I have heard that the NY state might tax the income. My question is what portion of the income is taxed by NY, and what portion by IL?

Let me know if you need more information.

[JohnB5677]

Unless your employer specifically acted to establish a bona fide office at your telecommuting location, you will continue to owe New York State income tax on income earned while telecommuting.  You will also have to file an IL tax return taxing the same income.  However, you will get a credit for the NY taxes that you paid on your IL tax return.  The credit will not be larger than the amount you owe to IL.

Note:  Prepare the NY tax return first so that the credit will carry onto the IL return.

Also see NY publication Nonresident whose primary office is in New York State