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State Wages Allocation compared to total Federal Wages on a Form W2

Lori563
Level 3

I have a W2 for a client that shows total wages of est $75000. There are 3 states involved. When I add up the wages shown for total state, it equals over $100000. Should I just put the correct numbers in or should I make the client get a corrected W2 form?

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2 Comments 2
Camp1040
Level 11

A few states do not allow deductions for deferred comp. Try adding the box 5 amounts on the W-2 forms and that may equal the total states income reported.

qbteachmt
Level 15

"There are 3 states involved. When I add up the wages shown for total state"

That is meaningless. Depending on the States, some want all income reported and then tax it all, giving any credit back for taxes paid in another State. Some States want only directly sourced income to be reported and taxed. Some States want you to report all income, and then they deducted what is reported in other States, and then tax the remaining income.

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