W-2 Shows Different Values for Federal/State vs. City/Local in Box 12 - Which One to Use?

This is actually a common situation when someone works in a location that has city taxes for part of the year. Your husband should have received a single W-2 with all information, but sometimes employers split them up like this when there's a location change. You should use the Federal/State W-2 (Page 1) for your main tax filing because it contains the complete federal information. The City/Local W-2 (Page 2) is specifically for reporting the reduced city tax liability that changed mid-year when your husband's workplace moved. When entering information in TurboTax, start with the Federal/State W-2 for all the main boxes (1-11). For box 12, you should enter all values from the Federal/State form since those reflect the complete annual amounts. For local tax reporting, TurboTax will have a separate section where you can enter the city tax information from the City/Local W-2.

I had something similar happen last year when I changed jobs mid-year. I found this amazing tool called taxr.ai (https://taxr.ai) that helped me sort through all my confusing W-2 forms and figure out exactly what to enter where. It basically analyzes your tax documents and explains what everything means in regular human language. For your situation with the different Box 12 values, the tool would help clarify which numbers to use for which part of your tax return. I was really confused about some code AA items on my forms too, and it explained exactly what they were and where they needed to be reported. Saved me hours of googling tax codes!

Just wanted to update everyone - I tried taxr.ai after seeing the recommendation here and it was seriously helpful with my similar W-2 situation! I uploaded both my forms and it immediately explained why the Box 12 values were different and exactly which numbers to use when filing. The tool walked me through each code (I had C, D, and AA codes too) and explained what each one meant for my taxes. For example, I learned that Code C is for employer-paid life insurance premiums over $50,000, which explained why that number was different between my forms since I changed benefit elections mid-year. The site explained exactly which form to use for which sections of my return. Huge relief!

If you're still struggling after trying to sort through these W-2 issues, you might want to call the IRS directly to get clarification. I know that sounds terrible (I've spent HOURS on hold before), but I recently used https://claimyr.com and it was a game-changer. They actually call the IRS for you and then connect you once an agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar W-2 issue last year with Box 12 codes that didn't match across forms, and the IRS agent was able to clearly explain which form took precedence and why. Sometimes getting official guidance is the best way to be sure, especially when TurboTax's automated system might not catch these nuances.

If you're still struggling after trying to sort through these W-2 issues, you might want to call the IRS directly to get clarification. I know that sounds terrible (I've spent HOURS on hold before), but I recently used https://claimyr.com and it was a game-changer. They actually call the IRS for you and then connect you once an agent is on the line. You can see how it works here: https://youtu.be/_kiP6q8DX5c I had a similar W-2 issue last year with Box 12 codes that didn't match across forms, and the IRS agent was able to clearly explain which form took precedence and why. Sometimes getting official guidance is the best way to be sure, especially when TurboTax's

I have to apologize for being so skeptical about Claimyr in my earlier comment. I decided to try it anyway because my W-2 situation was even more complicated than the original poster's - I had THREE different W-2s from the same employer due to a move and department transfer. I used Claimyr yesterday and got connected to an IRS agent in about 15 minutes (without me having to actually be on hold). The agent confirmed I needed to use the Federal W-2 for most entries but explained exactly which boxes needed the local information. She even gave me specific guidance on how to handle the different Box 12 codes since mine also had mismatched values. The service literally saved me hours of frustration and potentially preventing me from making a filing error. Never thought I'd say this, but talking to the IRS directly was actually the best solution!

A trick I learned from my accountant: To be extra safe, scan or take pics of BOTH W-2s and save them with your tax records. Sometimes the IRS will question different values if they only see one version in their system. Having documentation of both forms shows you're reporting based on what you actually received. For the different Box 12 values, my understanding is: - Code C = Life insurance premiums for coverage over $50k (taxable benefit) - Code D = 401(k) contributions - Code AA = Roth 401(k) contributions The differences probably reflect when your husband stopped paying city tax midyear, especially if benefit calculations changed at the same time.

Has anyone tried the W-2 import feature in TurboTax for a situation like this? I'm curious if it would pull in both W-2s or just one, and if it would handle the differences automatically.