Illinois Box 16
I moved from Illinois to Wyoming in March 2020. My employer did not update my location to be WY at the time. They've since, now provided me with a W2C & refunded me the amount through payroll that should not have been paid to Illinois.
My issue is the W2C is still showing full wages (matching box 1) for Illinois in Box 16 vs just wages earned from my time in IL (Jan-March). My accountant is saying only wages earned in IL should be shown in box 16 and since WY has no income tax, there will be no line for WY. The payroll company is telling my employer that Illinois reports ALL wages regardless.
How do I file?
Comments
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Your employer's payroll company is partially correct. ALL wages from box 16 need to total box 1. This means they should report the amount earned in IL and taxes paid and they should report the balance of your earnings as WY with no taxes. Even though they do not have taxes, for IL purposes you need to report WY wages earned. You will need to request another W2C - sorry
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Since the employer is not filing a wage report with WY, it may be difficult for the employer to show WY wages on the W-2. However, the employee can fix that without a new W-2C -
From the instructions for Form IL 1040 Schedule NR
If the Illinois wages as shown on your W-2 are incorrect, you must attach a letter from your employer, on company letterhead, stating the the correct amount of Illinois wages and the number of work days performed in each state. If any of the compensation was earned in a prior tax year, (i.e. deferred compensation or exercised stock options), the statement must include a detailed calculation of
how this income has been sourced. We will not accept a letter from you or your tax preparerYou may already have the letter if the employer sent a breakdown with the W-2c.
