Entering W-2 wages for multiple states

Forum|Forum|4 years ago
February 6, 2022
1 reply
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I have W-2 wages in 3 states. The resident state shows 100% of all wages, so entering as shown on W-2 means total wages will exceed actual total. Should I reduce the wages on the home state?

ProSeries Professional

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Best answer by qbteachmt

"means total wages will exceed actual total."

By State, there is no "total" wages. That's because there can be overlap. As you point out, one State might require 100% to be listed, and another has only locally-generated wages being reported. Don't put that total into the Fed fields, and it works fine.

taxiowa

Level 8

I take it you mean the state wages will exceed the total of federal wages. This would be normal in most states. Resident state taxes you on all of your wages then gives a credit for tax paid in another state for paying on a portion of the same income. Not sure how your state works because you neglected to say.

D

DellAuthor

Level 2

Thanks for your response. Yes, other states receive a credit on resident return but NY requires entering 100% of all wages even when not the resident state; therefore, the NY income tax calculated is excessive.and results in a large amount of tax due. Is there any adjustment that can be made?

taxiowa

Level 8

When I had to enter only NY wages on on non-resident return, I used the allocation worksheet. I simply typed in the amount of wages earned in NY in column D. Total wages are already present in column A if you chose non-resident. Then client was only taxed on that amount not the total wages.

However I am from Iowa so maybe someone from NY area would be better off responding.

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