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W-2 Default State

Level 2

After completion of return, W-2 state should NOT change, if client mailing address changes.  Clients moved out of state; I changed address on return - caused Balance Due to state originally lived/worked in during the taxable year, although the address change is for CURRENT year.  Took me a minute to figure out why suddenly a balance due to state; previously showed refund.  Both times this happened (this year) it was a few weeks (and many tax returns) between completion of return and signatures, due to out-of-state move in Feb/Mar.  Forces one to go through all W-2s to ensure correct state for withholding.  Again.  I believe we are all careful about what state withholding is for when entering W-2 data.

2 Comments 2
Level 15
Level 15

Ive never had an issue, are you filling in the resident and non-resident or part year resident states info at the bottom of the fed info worksheet, Part XI?

Level 15

That's Part XI (Intuit worksheets follow Super Bowl enumeration rules), about a kilometer (or .624 miles) south of Part I, where indeed it does tell you it needs to be filled out if the state location has changed since December 31.  This Part is labeled "for Part-Year and Nonresident State Return Filing Information Only," but of course that's not correct, it's also "for In Case Your Client Moved Out of State."  

What is needed is a checkbox in Part I that says "client moved out of state since first of year."  But don't hold your breath, expecting it to be provided.  Just one more software rule that you have to remember along with all the tax rules.  

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