W2 overstates income for state

[dktax]

Company issued W-2 with 3 states listed. They issued 2 separate W-2's for MN and a third W-2 for CA. The income for MN is overstated by the dollar amount on the 2nd W-2. The company will not correct the W-2. How do I report it so taxpayer gets full credit for state Withholding but as part year resident does not overstate her income to MN.

[ChEAr$]

Company issued W-2 with 3 states listed. They issued 2 separate W-2's for MN and a third W-2 for CA. The income for MN is overstated by the dollar amount on the 2nd W-2. The company will not correct the W-2. How do I report it so taxpayer gets full credit for state Withholding but as part year resident does not overstate her income to MN.

Are state wages correct for resident state?
Are other state wages correct for actual work in those states?

If so, sounds simple to me.

[dktax]

I thought so too at first. The numbers match wages in box 1of the W-2 if I leave out the second MN W-2. Form M-1 uses federal AGI as the starting point but the part year resident form uses the combined income for MN. There is MN state withholding on both MN W-2's.

[Snaggletooth]

Look for "Corrected" Box

May have marked the "corrected" box at the top of the W-2. If so, the old W-2 may be ignored.

Report the amount you know to be correct. Save W-2 documentation so you can point out the obvious to the various
taxing authorities when they start writing ugly letters. Tell the taxpayer you will be charging extra $$ for composing
letters to answer the taxing authorities, and the best thing he can do is to get the employer to re-issue W-2.

The employer may be refusing to re-issue W-2, or this might also be only what your client is telling you. Client may
expect YOU to straighten out the mess instead of getting his employer to do so.

[dktax]

Thank you for taking the time to reply. I was present when taxpayer called former employer. She was told that had she caught the error prior to the company closing out the year, they would have corrected. Now it is too late. I am wondering if I should efile with the numbers on the W-2 and then amend?

[Snaggletooth]

No Amendment Strategy

It's hard to justify intentionally creating the need for an amended return. File correctly the first time.

I would like to tell you the State of Minnesota will swoop down and make that company clean up it's act. It is far more likely that if there is any "swooping down" to be done, it will be on your client. A more effective strategy, if worth the trouble, is to bring civil suit in Minnesota for the amount of extra taxes enforced, and the employer will then be more than happy to correct its mess, and they will somehow find the time and resources that they say they don't have right now. Filing the suit is all that would be necessary, and probably can be done without a lawyer for the cost of a filing fee.