Part year resident with two state income on the w2

[E AND M]

Hello,

My client lived 6 months in NC and 6 months in CA ,  2021. 

On his w2, line # 16- state wages: the  two sates wages combined is grater than the amount on line #1 of his w2.

Since he lived 6 months in each of the two sates, is it ok if I allocate the sate wages 50:50 on his w2, so that the combined wages for the two sates equals the amount on line #1 of his w2?

Thank you

[Frustrated-in-IL]

No, it is not okay to do that.

To do it right, you will need the last paystub from the state your client left.  That should ideally tell you what the wages in that state were.  Of course, reality sometimes gets in the way of ideally, as the client moves to a new state but payroll doesn't get the memo in a timely manner, etc.  You will also need bank statements to determine interest income earned in each state, brokerage statements on the dividends and stock sales, and backup for your split of every number on the 1040.  You can't just split those 50-50 either.  And other items, like unemployment, may need special handling.

Keep in mind that some states, like NY, want the total wages reported in Box 16 even though that is not the actual NY wages.  So it is possible that the totals in Box 16 on the W-2 will exceed Box 1.  I am not sure what NC and CA require on that point.

[jeffmcpa2010]

Very likely the W-2 is correct as it is.

I have seen several states where the state wages are more than Box 1, when box 1 is less than box 3 and/or 5. It seems not all states follow federal on what "benefits" are not taxable.

[Just-Lisa-Now-]

Do you get some kind of error when you enter the W2 as it is?

[E AND M]

Than you all for your support.

I am not getting any error when I enter the w2 as it is. I will keep the w2 as it is.

Thank you