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Level 5
June 23, 2026
Solved

State withholding issue

  • June 23, 2026
  • 1 reply
  • 31 views

In 2025, salaried client worked in California for a company for 1 month and then was transferred and moved to  Washington state. 

Her W2 erroneously showed 50% of her income attributed to California. When her payroll dept was notified, they overstated her income for California, they issued a corrected W2, showing her California income and state tax withheld at roughly 1/12th of her salary.

Meanwhile, her paycheck stubs show her California income and withheld tax at equal to the first W2 so the reissued W2 might have the correct income for California but the withheld tax is considerably lower than the check stubs show. The company payroll dept is refusing to reissue another W2.

How should I proceed with this?

Thanks!

    Best answer by sjrcpa

    Client needs to ask employer for a refund of that extra CA withholding if she has not received it. Or the W-2 needs to be corrected again to reflect the actual CA withholding.

    1 reply

    sjrcpa
    sjrcpaAnswer
    Level 15
    June 23, 2026

    Client needs to ask employer for a refund of that extra CA withholding if she has not received it. Or the W-2 needs to be corrected again to reflect the actual CA withholding.

    The more I know the more I don’t know.