Question

Began working remotely, moved to another state, state code on W2 is for IA and applied for entire year.

Forum|Forum|3 years ago
April 3, 2023
1 reply
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Began working remotely this year and moved to Arkansas. No change to my employment. W2 state code is IA, so the system is applying it all to IA when it needs to allocate it based on my move date. Suggestions to fix?

TurboTax Self Employed Online

M

MAK70

There was a change in your employment, otherwise your employer would have changed to Arkansas withholding. There is no fix, you simply have to file your tax returns. You will have to file a Part Year resident return for Iowa and Arkansas. You should get a bigger refund from Iowa and owe Arkansas.

J

jpmeinecAuthor

I think that is the problem. Apparently I have to manually change my W4 to correct my withholding, which is currently in error. The return that it currently represents is incorrect - if I file, I will fail to pay taxes to Arkansas as I am supposed to. Do I need to get two W2s from my company with the two different locations for 2022?
Thanks!

H

HelenC12

No, you don't have to request two W-2's from your employer. Your employer won't give you two W-2's since they didn't withhold AR income taxes.

When you file your taxes, you'll do a part year IA and a part year AR income tax return. You'll be able to pay the correct amount of income taxes to IA and AR when you allocate your income based on where you lived at the time you earned your income.