Client received different versions of W2 for the same employment with conflicting state taxes, what to do?

[jeanmarc]

A client received several W-2 forms from the same employer, for the same job, containing different information in the state sections. This is because he worked for the same company in two different states — Indiana and Illinois — during the year. Below is a detailed breakdown of the W-2 forms he received. Note - Wages $43,504 is the same on all these.

First W2 marked for filing with Federal Return and State Return
State: IN
State Wages: $43,504
State Income Tax: $1251
Locality Name: [BLANK]

Second W2 marked for filing with Federal Return and State Return
State: [BLANK]
State ID: TOTAL STATE
State Wages: [BLANK]
State Income Tax: $1598
Locality Name: TOTAL LOCAL

Third W2 marked for Employee Records and for filing State Return
State: IL
State Wages: $22,368
State Income Tax: $347
Locality Name: [BLANK]

[sjrcpa]

So you've got 2 state returns - IL and IN- and possibly a local return to prepare.

What's the conflict?

Is there a question here?

[jeanmarc]

Shouldn't the two state wages added together equal the total federal wages? As it is right now they are all being reported for Indiana, then a part is reported for Illinois. If I were to total this then the wages reported to the states would be higher than that reported to the Fed. Then I have a W2 with a state identifier that says TOTAL STATE and a third/different amount for state income tax.

[jeanmarc]

CORRECTION: On Second W2 marked for filing with Federal Return and State Return
State ID says TOTAL STATE
State Wages is blank
State Income Tax: $1251
Locality Name is blank

* JUST CORRECTED ORIGINAL POST (which apparently you can't do in some browsers)

[BobKamman]

What was his state of residence?  Looks like he might be Indiana resident all year, working in Illinois part of year.  So all of the income is taxed by Indiana, and some of it by Illinois.  I think they may have some reciprocity agreement you have to follow.  

[jeanmarc]

He’s lived in both states at different times of the year. He explained that he worked for the same employer part of the year in Indiana and part of the year in Illinois. However, if you total the state wages they listed on the different W2’s it’s more than the total Federal wages, and seeing as there are three different versions of the W2 that say “filing copy”, I’m wondering if one doesn’t contain a mistake. 

[sjrcpa]

One of those 3 is TOTALS.

I'm not familiar with IN and IL, but some states (such as NY) tell you to put all of the wages on the state wages line even if not all earned in that state.

You and client need to figure out how much was earned while living in each state and file the part year returns accordingly.

[qbteachmt · Accepted solution]

Remember that W2 is Informational.

You don't add them together. They stand separately. Some States have you report all income and they tax it. Some will tax it and then give credit back for tax paid for it in other States. Some will have you allocate it per locality, and then tax it.

That's why you don't add them. That's adding kittens and apples.

The one marked "Employee Records" likely means your taxpayer client or their employer separated their forms incorrectly. It's the wrong copy, but if you are efiling, that doesn't matter.

There is no conflict here. That's specific info that needed to be provided specifically.