Two state taxes that don't add up to the total

[jeanmarc]

I have a client with a W2 where it shows two states (IL and NC) in the state part, Box 15 of the W2. What confuses me is that the state wages for IL in Box 15 are exactly the same as the total wages in Box 1 ($10,150). And the NC wages in Box 15 are for $5100. Shouldn't Box 1 reflect a total of the two state wages  ($15,250). Or, could there be a mistake.

[sjrcpa]

Sounds like total wages were $10,150. I would expect Box 1 is correct.

For the states, there could be a mistake or it could be correct based on those states rules. For example, NY would require all wages be shown in the NY state box.

Ask your client when and where he worked and/or lived in each state and file the 2 state returns appropriately.

Also, not likely the case here but many times state wages are different than Box 1 wages due to how the state treats things like 401(k) deferrals, cafeteria plan contributions, etc.

[garman22]

I would think box 1 should reflect the total of the 2 unless the total is correct and the state wage is off. 

[taxiowa]

Looks correct if IL resident.  They would be taxed on full wages in IL. Then taxpayer would get credit for tax paid on the $5,100 made in NC that was also taxed in IL.  Is taxpayer an IL resident?

[Skylane]

There  can also be a difference in what is taxable income between  states.

i.e. NJ taxes cafeteria plans while NY does not.

[qbteachmt]

"Shouldn't Box 1 reflect a total of the two state wages ($15,250). Or, could there be a mistake."

Nope. That is fine. This is not a Split. It's informational reporting. As is being pointed out, each State has its rules, and especially with teleworking, you would see amounts that need to be reported by reason, such as Lives and Works In, vs Employed by, vs Temporary State of work locations (such as for utility workers or traveling nurses), etc. You could even see the full amount in every State listed. That isn't added together.