W2 .. Worked in Arizona and Texas

Forum|Forum|2 years ago
March 19, 2024
1 reply
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In 2023, I worked from Jan to July in Arizona that has State Tax and for rest of year from July to Dec 2023, I worked from Texas that has no State Tax.

Company issued 1 W2 and took Arizona State Tax for Entire year.

What should I do to get the proper W2 for my situation & how do I file it with Turbo Tax

CatinaT1

Did you move from Arizona to Texas? Assuming you did, you will file a Part-Year Resident return in Arizona. You will not file a Texas return, obviously.

Did your employer separate how much income was earned in AZ and how much in TX? You would see this by looking at the boxes 15-17 on your W2. Is the amount in box 1 of your W2 also in box 16 or is only a portion of the amount from box 1 listed in box 16?

Even if they show all income was earned in AZ, when you do your Arizona return, you will allocate how much of your box 1 income is attributed to AZ. If you worked in AZ from Jan-July it would likely be one half of your box 1. 50% of your income was earned in AZ, while the other 50% was in Texas. Use whatever ratio is accurate for your situation.

You will get any excess withholdings refunded from AZ. You do not need a corrected W2, because your employer has already submitted those withholdings to AZ, so the withholding part is accurate.

Be sure going forward they are not withholding any state tax if you are working in Texas.