For a NJ resident with W-2 income, and the box 16 state wages is higher than the box 1 federal amount. What is the correct way to enter that?
I tried following the "Allocating income to one or more states when the state amount exceeds the federal amount" instructions from https://accountants.intuit.com/support/en-us/help-article/form-w-2/entering-w-2-wages-withholdings-m... but that doesn't seem to work at all. If I enter the higher NJ amount in "(16) State wages, if different" for NJ, it ignores that and doesn't use that amount on the NJ return It also continues to give me the #20043 critical diagnostic below.
(Edit: I deleted the W-2 and entered it again the same way, and then it appeared on the NJ return with the correct amount, but it still gives me the #20043 error.)
"Input has been made in the input field "(16) State wages, if different". This input field should only be used when taxable state wages differ from the amount reported on the federal return due to law differences. For example, when a state does not allow wages to be decreased by 401K contributions. To allocate amounts earned from state sources only on a part-year or non-resident state tax return, check the "Multi-state" box in client information, then input the state source amount in the input field "(1) Wages, tips, etc". To report an amount on the non-resident state return, but not the federal return, enter "State" in the source column. This diagnostic will not impact your ability to e-file the return. US - Ref #20043"
You have clicked a link to a site outside of the Intuit Accountants Community. By clicking "Continue", you will leave the community and be taken to that site instead.