In general, your Federal wages (box 1) and State wages (box 16) should be equal.
1. In case you have worked in only one state:
Please consult with your employer regarding the reason for this discrepancy.
You may receive a second income document from the same payer (such as a 1042-S form), which will report the remaining Federal wages, so the total would be equal to the State wages.
Once your employer provides you with a reason or a 1042-S form, you can report that in Sprintax.
2. In case you have worked in more than one State:
Important: Please note that the W-2 form shows how much was reported to which IRS/State Tax Office. This however does not mean you have physically earned that exact amount in each state reported on the W-2 form.
Below the W-2 form in Sprintax you will be asked to allocate your State wages between the two states you've reported on the W-2 form. Please enter the exact amount you've physically earned in each state. You may use your pay slips or contact your employer for more information.
Important: You do not have to change the amounts in box 1 and/or box 16. You only need to distribute your State wages correctly below the W-2 form in Sprintax.
Info: If you have worked in a State with no income tax (Florida, Alaska, Wyoming, Washington, Nevada, New Hampshire, South Dakota, Tennessee, Texas) you can select the option "Income earned in another State"
Please be careful and make sure that you are aware of the exact reason for the difference as selecting an incorrect reason on Step 3 - Let's talk money - W-2 might incorrectly affect the tax calculations on your Federal and/or State tax return.