PCS Travel W-2 Taxable Income on State

Forum|Forum|3 years ago
March 21, 2023
1 reply
0 views

Hello

I PCSed from an overseas location to Hawaii last year. I am a Civilian employee with DoD. I received W-2 on my PCS Travel. I had total of 75K in relocation expense that is taxable income (sigh). I received a W-2 on this relocation taxable income but it didn't have state (hawaii) on it. I verified with my internal HR and accounting that relocation income isn't taxable here in Hawaii and shouldn't count on it. But TurboTax Desktop calculates it like a normal W-2 and spits out 8.25% of this amount for my state tax owed. Is there a way I can fix this? I really need to make adjustment because the amount is more than $6K owed. Thank you.

MAK70

There is a workaround for this situation. On your W2 entry, for Hawaii state wages, you must enter .49 (it will not accept zero wages but it will round down). Next, go through Hawaii again and you should see the screen below which shows the income as not included on the Hawaii return.