W2 With 3 States - CA, MA, NY - Help!!

Forum|Forum|4 years ago
April 15, 2022
1 reply
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Wondering if anyone can help me with the Lacerte input - Here are the details

I am in CA, with a high end client with a daughter on the east coast.....literally a W2 and a brokerage statement return

W2 Box 1 -$220,536

CA W2 - State Wages $39577 (did not live in CA at all in 2021)

MA W2 - State Wages $118,604 ( Lived in MA from 1/1 to 8/31)

NY W2 - State Wages $220,536 (NY resident rest of year) Local Wages are $114,320

I have done hundreds of multi-state returns, but I have never had this issue with 3 States , and the State wages issue. Do I assume the local wages are the actual NY wages and override in the PY/NR screen? Not sure how to come up with numbers that add up to box one.

I am sure the east coast preparers deal with this stuff all the time, but this is a first, any help is appreciated....

Lacerte Tax

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Best answer by qbteachmt

And Local taxes are, well, local, such as Yonkers.

qbteachmt

Level 15

"Do I assume the local wages are the actual NY wages and override in the PY/NR screen?"

No. What you seem to want is that the three States should = Fed, but that's not how it works. Each State has their specific way to handle this. Some will have you report all wages and they credit back the tax paid to another State. Some will have you report only what is for that State to tax. Some tax on Source employer/location worked and some tax on Residency.

Enter the data as it was presented to you, per State as named.

Don't yell at us; we're volunteers

D

Dgordon1960Author

Level 2

Thanks for your quick reply. There are multiple posts on how to enter the w2 in Lacerte, with different answers.

So, on Lacerte, under wages, do I list each State, use the "S' for each State, and then put the total gross as US wages ? That seems to work....

qbteachmtAnswer

Level 15

And Local taxes are, well, local, such as Yonkers.

Don't yell at us; we're volunteers

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