W2 with 2 states listed

[TAXNJ]

Has the....

In TaxAct can you run the consistency check for e-filing to catch any errors and if it does not error out it is ready for submission?

If I read you correctly you deleted the MA wage on box 16 , but left the withholding on box 17 and it did NOT error out?

I think you may be good to go then. I doubt MA DOR will reject that. If there is any rejection it will be TaxAct!

OP worked with the software company to resolve the issue? Is it the software or the data input?

Seems that so many good reply posts suggestions and the issue continues would it be wise if the OP ask a colleague in the area to try it on their different vendor software at this point?

[ATSMAN]

>> Seems that so many good reply posts suggestions and the issue continues would it be wise if the OP ask a colleague in the area to try it on their different vendor software at this point?

Good point. Not an issue at all with Drake, I can confirm that.

[ruthc]

Ran the Alert Test

Yes, I did run the alert test. It passed and is ready to efile. I did delete the MA wage on box 16, but left the withholding on box 17. I hope ATSMAN is right that I will be good to go. I won't see the client until the end of the week so I am anxious to see how it goes. I spoke with the client's prior tax preparer. He did the same with Drake without any problems at all. And he has done his returns for years before retiring last year.
I will share my results when I have the final acceptance/rejection from MA. Thanks everyone for your help!

[TAXNJ]

Not so much....

Yes, I did run the alert test. It passed and is ready to efile. I did delete the MA wage on box 16, but left the withholding on box 17. I hope ATSMAN is right that I will be good to go. I won't see the client until the end of the week so I am anxious to see how it goes. I spoke with the client's prior tax preparer. He did the same with Drake without any problems at all. And he has done his returns for years before retiring last year.
I will share my results when I have the final acceptance/rejection from MA. Thanks everyone for your help!

you think "hopefully" ATSMAN is right but that you are right! You are the preparer and think that you are the one who should be right. Did you ever bring the issue to the software company you use? If yes, what was the solution?

[ATSMAN]

Can you confirm:
1 -- The questionable W2 was prepared properly in the first place, viz state A + state B income exceeds federal income and
2 -- What exactly triggered the "small amount" of withholding for MA as shown on the W2 (it had to come from somewhere!) and
3 -- Does your (and others!) tax software use, as the starting number on any state return, the relevant federal (= calculated) number of AGI or taxable income, or ignore all that and somehow "read" the W2 information instead?

Tax software issues and "fixes" aside, I'm a bit curious as to whether the W2 itself did not, from the gitgo, create some potential data-entry problems.

FE

I will let OP post the details of the actual W2.

I routinely do returns that have both CT (non resident) and MA resident prorations.

Most employers or payroll vendors will create a W2 for non resident workers where box 16 will list the same amount as box 1 for each state with the correct withholding for each state. This may not be mandatory, except for certain states like NY where it is mandatory and you run into the same issue.

Other software generally allow you to backoff an amount inside the state return so that the wages for the resident state are not doubled because there was 2 amounts in box 16.

In my opinion, any professional tax software should allow the user to edit or adjust certain amounts so that the return is correct. Perhaps some tax prep software like TaxAct/Turbotax that is also marketed for use by the taxpayer is too simplistic and literally forces you to not change any amounts inside the software. I can say this with some confidence because each year I am amending self prepared returns involving 2 or more state returns where the calculation was incorrect resulting in either a reduced refund or a notice of intent to assess additional tax (MA).

[ruthc]

Answer.....

Can you confirm:
1 -- The questionable W2 was prepared properly in the first place, viz state A + state B income exceeds federal income and
2 -- What exactly triggered the "small amount" of withholding for MA as shown on the W2 (it had to come from somewhere!) and
3 -- Does your (and others!) tax software use, as the starting number on any state return, the relevant federal (= calculated) number of AGI or taxable income, or ignore all that and somehow "read" the W2 information instead?

Tax software issues and "fixes" aside, I'm a bit curious as to whether the W2 itself did not, from the gitgo, create some potential data-entry problems.

FE

Answer to your questions:
1. The only reason the income exceeds the federal income is because each state lists the same wages for each state, therefore doubling the wages it should have. I've seen other W2s doing it the same way. I think it depends on the payroll company because one of my clients that had the same type W2 went to another payroll company and it was fine.
2. There was a small amount of MA withholding because the client informed the payroll dept to withhold $50/wk for MA withholding even though the wages were earned in CT. He felt from past returns that he would end up owing MA taxes even after getting the credit for paying CT on those wages.
3. I don't know the answer to that question.

I have a Support "help topic" I had from TaxAct that actually explains this issue. I would like to attach it instead of writing everything. If someone could tell me how to attach it, I would like to share with you. Thanks

[ruthc]

Putting -0- in Wages Worked!

I just wanted to share the results of e-filing of the MA return for my client in case someone else has the same issue. When there is one W2 with 2 states listed with the same wages, and just one state should have the wages. I ended up entering the correct wages for one state (CT) and -0- for the other state (MA). I entered the correct withholding per the original W2 per state. The reason the 2nd state (MA) had no wages was because the client asked the payroll dept. to withholding a certain amount of dollars per week for MA (where he lives) even though all the wages were earned in CT. I was surprised because it was denied at one point for having withholding without any wages. Maybe TaxAct corrected the issue. I am thrilled that it worked!

Thanks to everyone for their responses and help.