If your W‑2 lists more than four states or localities, you must create additional W‑2 entries to report the extra state or local information. This ensures all state and local wages and withholding are reported accurately without overstating income.
✅ When Is This Needed?
- Your W‑2 reports more than 4 states or localities
- The software does not allow more than four state/local entries per W‑2
🛠 How to Enter More Than 4 States/Localities
Follow these steps carefully to avoid duplicate wages or withholding.
1️⃣ Adjust the Original W‑2 Entry
- Reduce Box 1 (Wages) on your first W‑2 by $1
- All other boxes remain unchanged
2️⃣ Create an Additional W‑2
- Add a new W‑2 entry
- Enter the same employer information as the original W‑2
Enter $1 in Box 1
This $1 represents the amount subtracted from the first W‑2
3️⃣ Enter the Additional State/Local Information
- Scroll to the bottom of the W‑2 entry page
- Enter the additional states and/or localities listed on your original W‑2
- Complete only the applicable Boxes 15–20
4️⃣ Repeat If Necessary
If:
- You have more than 8 states/localities, or
- The additional W‑2 entry still does not allow enough room
Repeat the process:
- Reduce the first W‑2 by another $1
- Create another W‑2 with $1 in Box 1
- Enter the remaining state/locality information
✅ Each additional W‑2 should only account for $1 of wages.
⚠️ Important Notes
- 🚫 Do NOT re‑enter information from Boxes 2–14 on any additional W‑2 entries
(Federal withholding, Social Security wages, Medicare wages, etc.) - ✅ Only the first W‑2 entry should contain the full wage and withholding amounts
- ✅ This method prevents income duplication while allowing all states and localities to be reported
📌 Summary
- You can report unlimited states/localities by using multiple W‑2 entries
- Each extra W‑2 offsets wages by $1
- All state and local information is fully disclosed without overstating income