reporting salary income in state with no W-2?

[Ekaterinv]

Spouse and I moved from state A to state B in the middle of last year. Spouse had the same employer, based in state A, the whole year, she’s just fully remote now. We learned after moving that her employer refuses to do her withholdings for state B because, it sounds like, they simply can’t be bothered. So I paid estimated taxes for her for last year to state B.

Now I have her W-2 and am working through how to report this in Turbotax. Her W-2 correctly reports her full salary as federal income, then part of her salary attributable to our time living in state A with the whithholdings for state A, and nothing for state B. So when Turbotax imports it, the program clearly does not realize she has state B income.

So, do I just create a state B entry for her W-2 myself, assigning the balance of her salary for the year to state B and entring 0 for tax withheld, and leaving employer ID blank since there isn’t one? Then report the estimated taxes paid as appropriate? Or do I do something else?

[MP123]

Part-year returns in most states start with federal AGI which will already include the W2 income. So I think you could just do a part-year return for both state A and B, and the AGI would flow from your 1040. Then you'd have to tell each state how much of the AGI was earned there so it could be apportioned correctly.

[pshonore]

You may have trouble Efiling the state return for State B without a State employer id number but a mail in might work. A lot of employers have problems with splitting of wages to different states.