W2 re-allocation for state taxes

[Newlydivmomto4]

What is the name of your state? Kentucky/Indiana

I'm one of those misbehaving chimpanzees.

I have an employee who works for us in Kentucky, moved to Indiana middle of 2018, still works for us throughout 2018 and beyond, lives with family during the week, goes to Indiana on weekends. I was notified of the move when she didn't receive her w2 in January because it was returned to us in the mail.

She is now requesting to have her w2 adjusted to show that she is a resident of Indiana for part of the year. Can't this be done while filing her tax return?

 

[davew9128]

Reporting on the tax return is not the same as the W-2. That said, if the employee is working in KY and the W-2 properly reflects that, then I'm not seeing the problem, except for determining what portion was earned while a resident of IN. Employer has no obligation to report IN payroll unless they operate in IN.

 

[LdiJ]

Yes, your employee would need to handle this with her tax return. She is working in KY therefore her W2 should reflect that. She would file a non-resident return for KY, and a resident return for Indiana. In the future it would be best if you also withheld Indiana state tax as well. However you are not obligated to do so.

 

[Newlydivmomto4]

Thanks everyone. I appreciate your help.