Wrong State on W2

[smlok]

I did some brief remote work for a company based on of NY and during that time I had discovered that they had given me the wrong state forms to fill out. I received North Carolina instead of Oklahoma, so I pointed it out and spent the next several months trying to get it resolved. I was recently assured it was fixed to only find out that the W2 has NC instead of OK.

What are my tax options?

What are my legal options?

I don't want to deal with this employer any longer (no longer doing work because of their poor business practices) but I'm not sure how to fix this with them refusing to correct it since June of 2018.

[IsabellaG]

Your former employer already remitted the withholding tax to NC, not OK, so the only thing you can do is file a Non-Resident return for NC to get your withholding refunded to you. When you file your Resident return for OK, you won't have any withholding credits, so you'll have to pay your home state.

First, prepare your Federal return.

Next, when you prepare your NC return, you'll see a screen where you can indicate that none of the income from your W-2 is from NC.

You'll check that the income is NOT NC source income.

Continue, and select that for each income item, zero is allocable to NC.

Proceed through the return, and it should show that you will get your entire withholding back. 

[Sgkman]

Hello,

I moved from IN to IL in February. My employer did not reflect the change on w2 until May.  So, IN state wage (box16) does not correctly reflect how I much I made during my actual residence in IN. I have an ILLINOIS driver's license issued feb.2019 as a proof of my new residency. Is there a way I can reflect and change this on TurboTax?

Thank you in advance!!

[KathrynG3]

Yes. Go to your My Info section from the left navigation pane if you haven't already and enter your current address. 

Answer Yes to "I lived in another state in 2019." Enter Indiana and your date you became a resident.

When you are doing your states, be sure to fill out Indiana first.

Enter your county of employment.

Enter state residency details including the dates you lived there.

The next screen will split the income for you because you will only have to pay Indiana taxes on the money you received while living in Indiana. It is ok for that to be different than the W-2, but I recommend that when you are done entering, before submitting the return, check the pdf to make sure that the split is accurate. 

There are three acceptable ways to divide the income. This article describes allocating income for a part-year state return.