USA Multi-State W-2 Wages

[anc516]

This is my scenario: I'm a full-time MA resident who works in MA and MD for the same company. The company is a national corporation who I'm sure prepares thousands of W-2s each year. My W-2 lists the following (fake values shown, but the values match up to my situation):

• Box 1:$30,000. The Box 1 value from my W-2 is accurate.
• MA Box 16: $30,000 (Matches box 1)
• MD Box 16: $10,000

I use TurboTax to prepare my taxes. I have no issues with my Federal or MD return, but TurboTax is asking me to confirm my total state wages from my W-2 as being $40,000 (the sum of MA Box 16 and MD Box 16). This sum is greater than my Box 1 value with a difference of $10,000, equal to the MD Box 16 value. I understand that any wages I earn in MD are subject to MA and MD tax, but it doesn't seem right that the value of my state wages from my W-2 exceeds my total wages value. A TurboTax adviser and the Mass. Department of Revenue say that the sum of my state values should equal my Box 1 value, but my company is adamant that my W-2 is correct. Right now I don't know what to believe, so here are my questions:

1. Should the sum of both Box 16 values exceed my Box 1 value like this?
2. Should TurboTax be using this summed value as my state wages value?

I really appreciate the help! Please let me know if you need more from me.

 

[kirby]

MA taxes all of your income, whether earned in or out of state. Then , MA allows you a credit for tax paid to another state. Given this it seems turbo tax has to be given the full $30k in the MA return but all i can suggest is try it both ways and see which achieves the goal of showing $30k as Gross income on the MA return.

 

[anc516]

Thanks for the help!

If the value of MA Box 16 is what is supposed to be entered into my MA State Return for state wages, TurboTax does let me override the value to match the MA Box 16 value, but in doing so TurboTaxwon't let me E-File the MA return. I can mail it in, but I just want to make sure that the MA Box 16 value only (See original post) is what should be used in this case, not the sum of both MA + MD box 16 like what TurboTax wants.

 

[kirby]

If you do what turbo tax wants and get 40,000 as your MA gross income that is not correct. So again whatever you do you must ensure that 30,000 is what shows for your MA gross income

 

[anc516]

Got it. Thanks for the help!