I moved to Colorado on November 1st. I was in California before that. On my W-2 Form, my Federal Wages reported were $59,823. My state wages for Colorado reported were $27,024 and my California wages reported were $43,651. If you add $27,024 and $43,651, the amount will come higher than the Federal Wages. Do I need to request a W-2C Form to correct my state wages reported?

ANSWER

The BIDaWIZ Team's Answer:

It is actually possible for your state wages to exceed your federal wages. However, we wouldn't expect nearly half of your entire federal wages to be taxable in Colorado since you lived there for only 2 months. Did you ask your employer about this discrepancy? Please note that state withholding tax is based on where the money is physically earned. Thus, when a taxpayer lives in one state and works in another state, they may be subject to taxes in both states. However, you can claim a tax credit for taxes paid to another on your permanent resident tax return. This will prevent you from being taxed in both states.