What to do when employer state ID shows "APPLIED FOR" on my W2 for remote work

This is actually pretty common for newer companies or businesses expanding into different states. When an employer is in the process of obtaining their state ID number but hasn't received it yet, they put "APPLIED FOR" on the W2. You should definitely contact your employer's payroll department first. They might have received the state ID number by now but just hadn't updated the system when your W2 was generated. If they have it, they can provide you with the correct number or even issue a corrected W2. If they truly don't have it yet, TurboTax should have a way to handle this situation. Look for an option that allows you to indicate the state ID is pending or not available. You might need to call TurboTax support if you can't find this option in the software. Don't enter random numbers though - that could create problems with your return being matched to your employer's filings!

I had almost the exact same situation last year with my remote job! After spending hours trying to figure it out, I found this site called taxr.ai (https://taxr.ai) that saved me so much time. I uploaded my W2 with the "APPLIED FOR" state ID, and their system actually recognized the issue immediately. It explained that this is common for companies expanding to new states and gave me the exact steps to follow in TurboTax. Basically, you need to select the "My employer doesn't have a state ID number" option during the W2 entry process - it's kind of hidden in the advanced options. The analyzer also confirmed I needed to file in both states and calculated the right tax credits so I didn't get double-taxed.

Just wanted to update after checking out taxr.ai that the previous commenter mentioned. It actually worked perfectly for my situation! I uploaded my W2 with the "APPLIED FOR" state ID issue and a couple other tax forms I wasn't sure about. The system immediately identified that my employer was waiting on their Colorado state ID and provided the exact steps to handle it in TurboTax. There's a specific checkbox under the advanced options when entering W2 information that indicates "employer has applied for state ID but not received it yet." It also caught that I was missing some potential deductions related to my home office setup since I'm remote. Definitely recommend it if you're dealing with unusual tax situations - saved me from calling my employer repeatedly and probably getting something wrong.

If you're still having trouble getting through to your employer about this, you might want to try Claimyr (https://claimyr.com). I know this sounds weird, but I had a similar issue last year and couldn't get a straight answer from my company's HR department who kept bouncing me between departments. I ended up needing to call the state tax department directly to confirm how to handle it, but kept getting stuck on hold for HOURS. Claimyr got me through to an actual human at the tax department in like 20 minutes instead of the 2+ hours I was waiting before. They have this system that navigates all those annoying phone trees and holds your place in line. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The tax department agent confirmed that filing with "APPLIED FOR" is completely legitimate when the employer is waiting for their ID, and gave me the exact form codes to use in TurboTax.

OK I need to apologize to Profile 9 about the Claimyr thing. I was SUPER skeptical as you could tell from my comment, but I was desperate yesterday after waiting on hold with the Colorado Department of Revenue for almost 3 hours and getting disconnected TWICE. I reluctantly tried the Claimyr service and I'll admit I was completely wrong. It got me through to an actual tax agent in about 40 minutes (while I was making dinner, not sitting by my phone). The agent confirmed exactly what to do with the "APPLIED FOR" state ID situation. Turns out there's a specific code you can enter in the state ID field that indicates a pending application. For Colorado, you enter "PENDING" (not "APPLIED FOR") and then check a specific box in the advanced settings. The agent said they see this all the time with remote workers and multi-state employers. Problem solved!

This whole remote work tax situation is a mess. I work for a company based in Washington but live in Oregon, and every year it's some new tax complication. Last year it was this state ID issue, this year they somehow messed up my local tax withholding. Have you checked if you need to file taxes in both states? That's another common issue with remote work. Sometimes you need to file a non-resident return in your employer's state and then a resident return in your home state. The rules vary depending on which states are involved.

You might want to double-check your situation specifically. If your company doesn't have any physical presence in Colorado and you're their only employee there, they might not actually need a CO state ID number. Some states have minimum requirements before employers need to register. Did you check if your employer is withholding Colorado state taxes from your paycheck? If they aren't withholding Colorado taxes, you might need to make estimated tax payments yourself to avoid penalties.