W-2 wages for two separate states

Forum|Forum|1 year ago
February 16, 2025
1 reply
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I have a question pertaining to a W-2 from one employer that has my NC and VA wages totaling higher than my box 1 federal wages and am trying to understand if this is an error or I am missing something.

I moved from Virginia to NC in the 4th quarter of 2024. I commuted back to VA to work for a month before I switched jobs due to obligations with this company. That explains why I have two states on one w2. Any explanation for this? I would have guessed my 2 state wages would have totaled my federal box 1 wage.

Thank you!

TurboTax Home & Biz Windows

KeshaH

It's possible that your employer treated the income that you earned during that month when you were commuting back and forth as taxable in both states - which would be correct. Income is taxed in both the state in which you live and the state in which you work. The income that you earned for that month is taxable in both North Carolina and Virginia.

However, you would qualify for a credit in Virginia for the tax paid in North Carolina on the income that was taxed in both states.

hbmonsourAuthor

I appreciate the response! Is there somewhere specific in turbo tax to get this credit?

KeshaH

As you go through the Virginia return you'll get to a screen with a list of tax credits in Virginia. Click Start next to Credit for Tax Paid to Other States and follow the prompts. Make sure you've completed your North Carolina return first.