Multiple W2s for different states - how to handle on tax return?
Hey tax folks, I'm in a bit of a situation this year. I worked for the same company but relocated mid-year, so now I have two W2s from the same employer but for different states. One is for California (Jan-July) and the other is for Texas (Aug-Dec). I've never had to file in multiple states before and I'm completely lost on how to handle this on my tax return. Do I need to file separate state returns? Does this affect my federal filing at all? My tax software is asking me weird questions about part-year residency that I don't understand. Has anyone dealt with this before? The HR department wasn't very helpful when I asked them about it. Thanks in advance for any guidance!
18 comments


Zoe Wang
Yes, this is actually pretty common for people who move between states during a tax year! For your federal return, you'll combine the income from both W2s - nothing special there since it's all your total income for the year regardless of which state it came from. For state returns, you'll need to file a part-year resident return for California, reporting the income you earned while living there. Since Texas doesn't have state income tax, you won't need to file a Texas state return at all, which is one less thing to worry about. When your tax software asks about part-year residency, it's trying to determine which portion of your income should be allocated to each state. You'll need to know the exact dates you were a resident of each state. The software should walk you through allocating your income based on those dates.
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Connor Richards
•What if some of the income on the W2 doesn't match exactly with residency? Like what if OP worked remotely for California for a couple weeks after moving to Texas?
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Zoe Wang
•That's a good question about remote work after moving. In that situation, it gets slightly more complicated because you generally pay taxes based on where you physically performed the work, not where the company is located. If you worked remotely for a California employer while physically in Texas, that income technically isn't California-sourced income. You would report on your California part-year return only the income earned while physically present in California. The remaining income would not be subject to California tax, even if the W2 says California.
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Grace Durand
I went through something similar last year with multiple W2s for different states and it was driving me crazy trying to figure out which income went where. I found this service called taxr.ai (https://taxr.ai) that really helped me sort it all out. I uploaded my W2s from both states and it analyzed exactly how to allocate everything correctly for state residency purposes. The tool flagged that I was allocating too much income to my high-tax state and showed me how to properly document my move date to minimize my state tax burden. It even helped identify which deductions I could take on each state return. Saved me a bunch of money!
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Steven Adams
•Does it handle complicated situations like having income from freelance work in multiple states too? Or is it just for W2 employees?
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Alice Fleming
•I'm curious about this. How does it work with tax software like TurboTax or H&R Block? Do you still use those or does this replace them?
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Grace Durand
•It definitely handles freelance income across multiple states - that's actually where it really shines because it helps track which 1099 income should be allocated to which state based on where you performed the work. You still use your regular tax software like TurboTax or H&R Block. Taxr.ai isn't a replacement - it's more like a guidance tool that helps you understand how to correctly enter your information into whatever tax program you're using. It analyzes your documents and gives you specific instructions for how to complete the multi-state sections accurately.
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Alice Fleming
Just wanted to follow up - I tried taxr.ai after seeing it mentioned here and it was seriously helpful! I had a similar situation with W2s from Michigan and Florida plus some contractor work. The analysis it provided showed me exactly how to allocate everything between states and what dates to use for my residency change. My tax refund ended up being almost $700 more than what I initially calculated before using it. The guidance was super clear about exactly which boxes on each form needed to be adjusted. Definitely would recommend for anyone dealing with multiple state filings!
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Hassan Khoury
If you need to contact the IRS to sort out any issues with your multi-state return (like if you get a notice about mismatched W2 information), I recommend using Claimyr (https://claimyr.com). I had to call the IRS about my multi-state return last year and was getting nowhere with hold times of 2+ hours. Claimyr got me connected to an actual IRS agent in about 15 minutes instead of waiting on hold all day. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. They basically navigate the IRS phone tree for you and call you when they've got an agent on the line. Saved me from having to take a day off work just to sit on hold.
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Victoria Stark
•Wait, how exactly does this work? Do they have some special connection to the IRS or something? Sounds too good to be true honestly.
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Benjamin Kim
•I'm extremely skeptical. The IRS phone system is deliberately designed to be impossible. How could some random service magically get through? Sounds like a waste of money to me.
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Hassan Khoury
•No special connection to the IRS - they just have an automated system that does the waiting for you. It calls the IRS, navigates through all those annoying menu options, and then stays on hold instead of you. When they actually reach a human agent, you get a call to connect you. The reason it seems to work better than calling yourself is they've optimized for the best times to call and have systems that can stay on hold indefinitely. It's not magic - just automating the painful part of the process. Basically you're paying to not waste hours of your life on hold.
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Benjamin Kim
I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I was still struggling with getting answers about my multi-state tax situation, so I reluctantly gave it a try. It actually worked exactly as described. I got connected to an IRS agent in about 20 minutes when I had previously wasted three separate afternoons trying to get through. The agent was able to confirm how I should be reporting my W2s from different states and cleared up my confusion about part-year residency. Saved me from potentially filing incorrectly and dealing with amendments later. Sometimes it's worth admitting when you're wrong!
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Samantha Howard
One thing to keep in mind with multiple state W2s: check if your employer correctly allocated your state unemployment insurance and other state-specific payroll taxes after you moved. I had an issue where my company kept withholding for my old state for 2 months after I moved, and I had to get that corrected.
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Aidan Hudson
•That's a really good point I hadn't considered! Just checked my W2s and it looks like they did continue California SDI withholding even on my Texas W2. How would I go about fixing that? Would I need to get a corrected W2 issued?
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Samantha Howard
•You should first contact your payroll department and ask them to issue a corrected W2. They should stop the withholding going forward and may be able to refund you for the incorrect withholding after your move. If they won't issue a corrected W2 (some companies are reluctant to do this), you can still file correctly using the existing W2 and you may be able to claim a refund for the incorrectly withheld state taxes when you file your California return. The key is to clearly document your residency change date so California knows you weren't subject to their taxes during that period.
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Megan D'Acosta
Don't you also need to worry about "statutory residency" in some states? I think some states consider you a full-year resident if you're there for more than 183 days even if you moved.
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Sarah Ali
•Yes, this is super important! California in particular is aggressive about this. If you spent more than 9 months there in the tax year, they might argue you're a full-year resident even if you "moved" to Texas. They look at factors like: - Where your main home is - Where your family lives - Where your cars are registered - Where you vote - Where your doctors are
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