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Employer Doesn't Correct Improperly Prepared W-2 for 2018

  • 1.  Employer Doesn't Correct Improperly Prepared W-2 for 2018

    Bronze Most Valuable Member
    Posted 10-08-2019 12:56
    What is done in this situation? 2018 tax return is on extension with refunds for each return.
    A  client was informed in middle of 2018 he was going to be terminated. He is a long time employee with this Fortune 500 company.
    He is a full year NYS resident who works 100% in New York, his wife and dependent son are full year Mass. residents where she works 100% in Mass.
    As soon as he was notified of his termination, he informed the payroll office to change his mailing address to Mass. (where he would eventually be moving, as he's near retirement age anyway.
    When he received his W-2 it showed 100% of Federal wages for NY with NYS withholding and, AND had a 2nd line for Mass. wages since the change of address with -0- Mass. withholding tax. As stated above - he worked 100% in NY, -0- for Mass.
    So we extended the returns, and over the summer he brought me a "corrected" W-2 - that totally deleted the NY line, and left in the Mass. wage amount, with of course, -0- withholding.
    He's made numerous attempts to get this corrected, and each time he is sent duplicates of the wrong W-2 data.
    I know that for IRS - there's Form 4852 that can be submitted (non-efilable) to account for employer caused discrepancies.
    Since this involves 2 states - how do we get this corrected prior to filing?
    Because, as it stands now - there's no NY withholding tax to take credit for, and Mass. is going to be looking for tax on Mass. income shown on W-2.
    The way I've been filing the state returns for years - and haven't ever received ANY communication from either NY or Mass. - is to file MFJ like on Federal, but part year (full year - 1 day) and apply the respective taxable income for each spouse to respective state.

    AIRMONT, NEW YORK 10952-3816
    TEL 845-357-8770
    FAX 845-357-1437

  • 2.  RE: Employer Doesn't Correct Improperly Prepared W-2 for 2018

    Posted 10-09-2019 14:27

    Hi Evan,


    In my opinion what actually happened, in terms of income allocation and taxes withheld, is how you file the tax returns and it appears the way you have been doing is fine.  That W-2 forms need to be amended is an issue that you take up after this deadline.  Of course you have to be sure that in fact he had NYS withholdings before you take a credit but the pay stubs should tell you that.  And yes, you may have some correspondence but tha'ts not your fault and you will be timely filing a tax return with the best information you have at the time of filing.




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