Tax Return Question: W2 says wrong state?

Question

My W2 has a line 17 for State Tax of New Mexico, but I've lived in Washington all of 2006, seems my employer hasnt updated thier info and Washington has no state tax. Do I want to include that line when filling out Turbotax? I would think not.

Answer 1

1) Try and get your employer to correct it. Most won't but some will.

2) If they won't correct it, file a NM return and get a refund of all of the taxes withheld.

This is more common then you might think.

Answer 2

State earnings tax is hard. in case you're able to do the allowances on the W-4 merely correct, you have precisely the quantity due withheld and does no longer get the two a reimbursement or a stability due. then you definately might merely upload the quantity teach on your itemized deductions and be performed with it. in actuality, you will the two get a reimbursement or owe. in case you get a reimbursement, the refund is shown on the subsequent year's tax return as earnings (1040, line 10). in case you owe, the further money you pay is an further itemized deduction interior right here year (eg, owe on 2009, deduct it on 2010).