W-2 with 2 states

[bjscheel]

A W-2 has Iowa and Nebraska withholding.  The problem is it says the Iowa wages and Nebraska wages are both equal to the federal wages- it doesn't allocate part to IA and part to NE.  He lives and works in Iowa.  We don't know why it has NE on it.  Should I enter him as having the full amount as being both NE and IA wages?  It's not seeming to make him owe NE tax either way, but I'm not familiar with NE taxes. 

[George4Tacks]

This does not answer the question of why the two states. Have the taxpayer speak with their employer to clarify. There should be a credit from one state to the other, but you will likely have the expense of an extra state REP, so be sure before you authorize the extra state. 

https://proconnect.intuit.com/community/form-w-2/help/allocating-w-2-wages-and-withholdings-for-mult...

Allocating income to one or more states when the state amount exceeds the federal amount

1. Go to Screen 10, Wages, Salaries, Tips.
2. Hold down Crtl+E in, Wages, Tips, Other Compensation or click the small paper icon to the right of the input field.
3. Enter a Description (if applicable).
   • Note: The description does not transfer to the return. The description is a memo only, or you can print it with the return as a Code Note by setting the Print As option to "Statement" or "Diagnostic."
4. Enter the amount of income for each state, that does not exceed the Federal total income.
5. Scroll down to the State and Local section.
6. In Box 16 State Wages if Different, enter any amount of state wages that exceeds total Federal wages.

Example:

W-2 Displays the following income items: Federal 30,000, Arkansas 12,000, Kentucky 16,000, and Ohio 31,000

Enter this information accordingly:
In the field, (1) Wages, tips, etc. (Ctrl+W if multi-state) enter

12,000 AR
16,000 KY
2,000 US.
The total will show 30,000.
Results: 30,000 will flow to Form 1040, line 7, 12,000 will flow to Arkansas, and 16,000 will flow to Kentucky
In the field, (16) State wages, if different enter
31,000 OH
Results: 31,000 will flow to the Ohio return