If your W‑2 shows wages or withholding for more than four states or local tax jurisdictions, you'll need to create additional W‑2 entries in the software. This allows you to report all state and local information correctly without accidentally duplicating your income.
Why do I need an additional W‑2 entry?
Some tax software allows only four state or local entries per W‑2. If your form includes more than that, creating an additional W‑2 lets you enter the remaining state or locality information while keeping your federal income amounts accurate.
You'll typically need to do this when:
- Your W‑2 reports more than four states or localities.
- There isn't enough space in a single W‑2 entry to enter all of the information from Boxes 15 through 20.
How to Enter More Than Four States or Localities
Follow the steps below to avoid overstating your wages or withholding.
Step 1: Adjust the Original W‑2
On your first W‑2 entry:
- Reduce Box 1 (Wages, tips, other compensation) by $1.
- Leave all other boxes exactly as they appear on your original W‑2.
Step 2: Create an Additional W‑2
Add a new W‑2 using the same employer information from the original form.
For the new entry:
- Enter $1 in Box 1.
- This $1 offsets the amount you removed from the original W‑2.
Step 3: Enter the Additional State and Local Information
In the new W‑2 entry:
- Scroll to the state and local tax section.
- Enter the additional information from Boxes 15 through 20 that did not fit on the original W‑2 entry.
- Complete only the applicable state and local fields.
Step 4: Repeat If Necessary
If your W‑2 lists more states or localities than can fit across two entries, repeat the process:
- Reduce Box 1 on the original W‑2 by another $1.
- Create another W‑2 with $1 in Box 1.
- Enter the remaining state or local information.
Each additional W‑2 should include only $1 of wages.
Important Rules to Follow
To prevent duplicate income reporting:
- Do not re-enter information from Boxes 2 through 14 on any additional W‑2 entries.
- Only the first W‑2 should contain the full federal wage and withholding information.
- Additional W‑2 entries should be used only to report extra state and local tax details.
- The total wages reported across all W‑2 entries should match the wages shown on your original form.
Example
Suppose your W‑2 lists six different state or local jurisdictions.
- Enter the original W‑2 and reduce Box 1 by $1.
- Create a second W‑2 with the same employer information and enter $1 in Box 1.
- Use the second W‑2 to enter the fifth and sixth state or locality records.
This method allows all state and local information to be reported without increasing your taxable income.