W-2 State Withholding

[geekgirldany]

Client is filing two years of past due tax returns. He got the income transcripts from the IRS website with his W-2s. Of course no State withholding is listed. He called the state and they said they could not provide the information as they had no way of looking it up. Prior employer contacted many times and will not send W-2.

How should I handle preparing the state return? I do not feel it is correct to estimate the tax plus he does have a Schedule A so any state withholding tax listed as an "estimate" will get added on there. Should one be prepared with the hopes they will "find" the missing withholding?

Would greatly appreciate any input on how to handle it.

[BOB W]

W2

What I have done in the past was get his prior year w2 and came up with a percent of income for his state withholding tax and apply that percentage to his current W-2 box 1. While it assumes all is a constant from year to year, it is at least a good base to use.

[TaxGuyBill]

I would guess that the person that told you they had no way of looking it up doesn't know what they are talking about. Otherwise, why can't you just say they withheld A LOT of State withholding and get a giant refund? I would call back and ask somebody else (or another department).

Otherwise, you can order them from the Social Security Administration. Unfortunately, they cost $37 each.

https://faq.ssa.gov/link/portal/34011/34019/Article/3836/How-can-I-get-a-copy-of-my-wage-and-tax-statements-Form

[Redneck]

What State

What State are we talking about.

[taxea]

I would have TP call the state and ask for a supervisor or if you know how many W4 exemptions he is claiming you can get it from the tax tables for that years in question.

He doesn't necessarily need the W2 but can't his employer give him the withheld amounts verbally?

[geekgirldany]

This is in Georgia. I know North Carolina told me the same thing for another client years ago. So, some of the states must not have their system setup to give such information.

Thanks for the info from the SS Admin. I believe that may be out best bet. Client left employer on bad terms so they will not send a new W-2 or talk to him about it.

I would do a estimate but this will add on to Schedule A, Form 1040 for state taxes paid during the year. It will be incorrect so I fill like I should not file the return that way. I would rather get the W-2 from the SS Admin and later amend the returns than to do to file the IRS incorrectly.

[MDEA]

state withholding

I know in MD you can always find out the state withholding in DC there is no way to obtain it. If you paper file no W-2 no credit for withholding.

[Corduroy Frog]

I don't buy the story

Just think about Georgia (or any other state) not knowing how much state income tax was withheld. It doesn't make sense. How would they match ANYTHING?

A more likely story could be:
1) The state employee was too lazy to go to the trouble to help.
2) The state employee was under pressure to cut telephone time such that it would ruin his response record
if he took the trouble to help you. (Yes, they track it, and the less time, the better as far as the call center
is concerned)
3) The state has no machinery set up where telephone assistants are able to retrieve the information.

For a state NOT to know the amount of tax withheld from an employee is ridiculous and unsustainable.

[MDEA]

state withholding

DC has no way and does not match withholding.You must provide a W-2 or you receive no credit. Companies do not break down the money by ss# when they report.

[dkss]

Unless something changed in the last few years, Indiana does not track that info. If you do a paper return and do not attach the w-2, they will not allow the withholding. Also, if you efile that return, you are confirming that you, as the preparer, have all related withholding docs (w-2, 1099, etc).

But, things may now be different in Indiana, because starting last year, all employers were required to submit their withholding forms electronically. So, the IDOR may now be able to get WH info going forward.

[TXEA]

Many states base the withholding on the amount that appears in the W-2 filed with the return.

The states that do this match the withholding reported by the employer with the state copy of the W-3 only. So, the enforcement is against the employer.

So, without a W-2, it is likely your client will not get credit for any state withholding.

I would send a letter to the employer asking for another copy of the Form W-2 for the years in question. I would include an explanation that you know it is likely they provided the W-2 to the employee; however, the employee has lost the form. Then, ask them to please provide another copy as a professional courtesy. Apologize for the inconvenience and thank them in advance for their assistance. If this is a local company, they will most likely provide the form to the employee. Employers, just like tax preparers, get annoyed with constant requests for duplicate copies of documents. Acknowledging the annoyance will often soften them up a little.

[TaxGuyBill]

I think this is interesting. It just seems bizarre that the State wouldn't 'match' the numbers.

If the State (or Washington DC) doesn't keep track of the withholding, why can't Turbo-Taxers just put a slightly larger amount into the software and e-file the return? Or what if they make a 'typo'?

For Washington DC, companies may not report separate numbers directly to DC, but wouldn't DC have access to the original W-2s through the Social Security Administration and 'match' things that way?

[Burke]

I would send a letter to the employer asking for another copy of the Form W-2 for the years in question.

Have the employer refer to the Instructions for Preparing Forms W-2 or send him a copy. It states the employer issues a duplicate W-2 to the employee if it is lost and how to label it. It doesn't say its optional. He is allowed to charge a fee for this. And I don't think it can be unreasonable. IMPORTANT: Note IRS Tax Topic 154. It states that if the employee does not receive a W-2 after requesting it, the IRS will contact the employer for the information. Maybe this will move him.

[DaveO]

I have faced this on several occasions. NE has allowed a percentage of Federal withholding on a case by case basis. If you can talk to a supervisor you might have some luck.

[spanel]

I think this is interesting. It just seems bizarre that the State wouldn't 'match' the numbers.

If the State (or Washington DC) doesn't keep track of the withholding, why can't Turbo-Taxers just put a slightly larger amount into the software and e-file the return? Or what if they make a 'typo'?

For Washington DC, companies may not report separate numbers directly to DC, but wouldn't DC have access to the original W-2s through the Social Security Administration and 'match' things that way?

IL is the same way.. they do not get the W2 info. They will however request the W2 when the witholdings are out of the norm before releasing a refund.

Chris