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CA state wages and UT state wages reported in box 16 on the W2 are in excess of box 1 wages. How do I allocate properly to each state in order to report the correct amount on the respective state returns.
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Full amount of CA wages coded CA. Full amount of UT wages coded UT. Balance to match Box 1 total (can be negative) coded to US.
You may need to adjust elsewhere to get the PY returns right, but that's the right input for the Wages screen.
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Thank you for the input!
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You should never expect the W2 State wages to add up to the Federal. We just saw this type of question for my State (MT). For some States, you report all wages, then allocate by residency and they will tax that amount. For some, you report in full and they will give a tax credit for any tax paid in another state (if there is any). For others, they want you to report in full and then the Tax is adjusted by residency. That's because these States want your State form to report the same as Fed AGI, before doing any State magic for adjustments.
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