Question

W2 double counted in California Form 540 line 12

Forum|Forum|4 years ago
April 11, 2022
1 reply
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My incomes:
(A) First W2 earned in and reported to CA (resident)
(B) Second W2 earned in PA (nonresident), reported to both PA and CA. The paper W2 has 3 copies (Federal filing copy with "TOTAL STATE", CA state filing copy, and PA state filing copy). The imported version only had one line for boxes 15-17 for CA. I had to manually "add another state" to include PA. Both line have the same amount in box 16.
(C) Dividend

Wages (Form 1040 Line 1): A+B (correct)
Wages (Form 540 Line 12): A+B+B (wrong!!!)
Wages (Schedule CA Line 1-A): A+B (correct)

Federal AGI (Form 1040 Line 11): A+B+C (correct)
Federal AGI (Form 540 Line 13): A+B+C (correct)
State AGI (Form 540 Line 17): A+B+C (correct)

AGI is correct, so the error in Form 540 Line 12 doesn't affect the end result.

I'm going to override Line 12 manually, as I probably won't have time to wait for a proper solution.

TurboTax Home & Biz Windows

DanielV01

Employee

If all of the income is taxable to CA as California resident income, a more practical solution is to put 0 in box 16 of the W2 on the California line. The PA income will flow properly to CA as well, and you won't have the double-counting.

This reporting issue could stem from how PA requires the state income reporting on the W2. This could be a bit of a glitch, but see if the above workaround gets the correct numbers. Of course, retain copies of your W2s no matter how you resolve it so that if either state questions your reporting, you can back up what you did.

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