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I live in MA, work in RI. Paid taxes to both. Got 2 W-2s, different wages and state taxes. Filled one wage, 2 taxes. TT not able to adjust tax already paid to MA. Help.

Forum|Forum|7 years ago
June 3, 2019
5 replies
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While entering Federal W-2, under the state sections, I filled in the wages and tax for the earned state, RI. For MA, I entered $0 wages but entered the actual Tax on the second W-2. At the end of State returns calculations, first RI and then MA, Turbo Tax is not able to adjust the tax already paid while estimating MA's tax. How to get the credit for the MA state tax already paid, on MA's return?

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Best answer by DanielV01

You should input the information in the W2 screen as reported (2 separate state), and prepare the Rhode Island nonresident return first. Then, well into the Massachusetts return, you receive a screen entitled About Your State Wages. It asks you if the state wage amount is correct. Answer no if the amount you see on the screen is double what it should be. On the next screen Massachusetts Wages, you are asked if you only want Massachusetts wages transfered into the program. You will click Yes. This should remove the RI wages from the MA calculation. Massachusetss does require you to mail in your return.

Then, when you get to the Taxes paid to Another State, you re-enter the amount of income you earned in Rhode Island, and the amount of net tax you paid. This is the amount withheld minus any RI refund. Don't forget to input the box 14 RI SDI amount (if any), because MA allows a credit against those payments as well.

Comment if that doesn't work (it's supposed to). But remember, you will not be able to e-file your Massachusetts return. You will have to mail it in.

DanielV01

Employee

What happens when you put the amount reported to MA in box 16 on the W2 screen instead of a zero?

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E

earnandenjoyAuthor

Then, when I complete my MA state return, (after finishing RI state return), MA wages becomes RI wage + MA wage on the 2 W2s, and hence tax goes up the roof. For that I followed the advice on one the questions where the wages becomes double because of 2 wages, though someone earned just one income.

DanielV01Answer

Employee

You should input the information in the W2 screen as reported (2 separate state), and prepare the Rhode Island nonresident return first. Then, well into the Massachusetts return, you receive a screen entitled About Your State Wages. It asks you if the state wage amount is correct. Answer no if the amount you see on the screen is double what it should be. On the next screen Massachusetts Wages, you are asked if you only want Massachusetts wages transfered into the program. You will click Yes. This should remove the RI wages from the MA calculation. Massachusetss does require you to mail in your return.

Then, when you get to the Taxes paid to Another State, you re-enter the amount of income you earned in Rhode Island, and the amount of net tax you paid. This is the amount withheld minus any RI refund. Don't forget to input the box 14 RI SDI amount (if any), because MA allows a credit against those payments as well.

Comment if that doesn't work (it's supposed to). But remember, you will not be able to e-file your Massachusetts return. You will have to mail it in.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

E

earnandenjoyAuthor

Thanks! I saw that option to correct earlier, but because that I had to mail in the MA return, I didn't go ahead. But, if there's no other option, I'll try that. Can you please explain a little more in detail by what you meant "Then, when you get to the Taxes paid to Another State, you re-enter the amount of income you earned in Rhode Island, and the amount of net tax you paid."? Here, TT seems to calculate on its own the taxes paid to RI, lesser than what was reported on RI W2 Box 17.

H

Hpro

I am having the same issue. My husband only works in RI, but we live in MA. His employer gave him two W2s. Both RI and MA box 16 has his entire RI income of 90k in it. I did complete our RI return first. When I get to MA, it initially has our income as $180k (plus my income.). When I get to the part where it asks if it’s reporting income earned in another state, it eventually takes that down to the 90k again. But really, that 90k was not earned in MA. Shouldn’t his MA box 16 be $0? Does he need a corrected W2?

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Rich22

This doesn't seem to work filing jointly. My wife works in MA and I work in RI. We always pay MA so I had MA taxes taken out to compensate what we owed. When doing what was suggested it removed my RI income and just gave me the tax credit from RI.

DaveF1006

When you report your states, make sure you fill out your RI return first before you begin Mass. The flow should be correct at this point and you should receive credit for the RI taxes paid.

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Rich22

I have done the RI tax form first but it is reporting the tax credit from other jurisdiction (RI) . It does show the correct income and tax credit from RI state in step by step but not reflecting the income in the MA form. My W2 only show income that that MA taxes was withheld for. So income on W2 for MA taxes withheld for was for salary $11535 (beginning of the year) but total RI income was 93000 for the year.