I have a client that lives in NY and works in MA. On her W2 it shows full wages taxable to MA and taxable to NY. Both states had state tax taken out. In the old way of doing things I would put the full amount of wages, if they were all taxable to both states, in the Non resident state and the program would calculate, or know that the amount was also taxable to NY. There never used to be a problem with having a state tax deduction for NY with a zero amount showing for NY in the wages box. The program cross referenced and figured it out. I have been wracking my brain trying all things to get the critical diagnostic to go away. It won't because of the zero wages with the state tax deduction.
hope that makes sense.
HELP
Rachel Clarino
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