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W-2 state wage allocation

hdtaxman
Level 2

Good morning..trying to determine best way to handle a state income tax reporting issue.

Married couple from Georgia, filing status MFJ, purchased NY property in 2018. Wife works 100% remote for Georgia hospital, moved to NY in mid 2018 but kept Georgia as official residence for 2018 as husband lived in Georgia until 7/19 retirement.  In 5/2019, wife officially changed residence to NY (driver license,etc.) and notified employer.  Husband moved in 7/19 after retirement but no sisues with his wages.  Wife's employer issued W-2 for 2019, and shows her full $95K W-2 wages for both Georgia and NY, whereas expectations were to see 5/12 of total wages for Georgia and 7/12 for NY.  As it stands with respect to total wages in both states, Georgia withholding overstated and NY withholding understated for 2019 as employer did not apply correct rates, etc.  The actual state wages withheld cannot be undone at this point so question is this:  since full $95K wages reflected for both NY and Georgia and that will need to be input on W2 entry, is best way to handle the needed changes on the state allocation worksheet and reflect the proper amount of each states wages as opposed to the actual W2 amount? Will need to show wife as PY resident for NY and Georgia  Paychecks will prove when NY tax started to be taken out and it supports the 7/12 of the year totals, not the full $95k.  Employer is saying stat amounts are correct and won't change.  The employer tax people refer to state tax credits as the way to fix the issue.  Not sure I agree with that comment since if wages are allocated properly, there should not be tax credits per se as wages would be allocated properly for state purposes.  Any comments on my logic?  I really would prefer that the employer correct W2 but doubtful it will happen..

Thanks in advance for any comments...

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1 Comment 1
BobKamman
Level 15

I didn't get past the first sentence, where it seems that the wife is a full-year 2019 NY resident regardless of what she would prefer to claim.  Physical presence and intent to stay.  

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