Generally, your Federal wages (box 1) and State wages (box 16) should be equal. If your Federal wages are less than your State wages and the reason is not because of another 1042-S form or W-2 form, you can choose 'Other exempt income' and manually enter a description for the difference. If you are unsure where the difference comes from, please make sure to contact the payer of your income for clarification.
Here is an example of how to enter your W-2 in Sprintax (Step 3 - Let's talk money):
As you can see, the Federal wages here are 90,000 while the total amount of State wages is 100,000. Once you submit your details, you will be asked to enter the actual wages you earned in each state:
The State wages that you see reported on your W-2 may not be the actual wages you physically earned in each state. You can review your pay slips and/or contact the payer of your income for that kind of information. Once you type in your actual wages and select 'Other exempt income' you will have to manually enter the reasoning for that.
Important: If you are unsure where the difference comes from, please make sure to reach out to your employer.
Info: If the difference is coming from income exempt by tax treaty, please click here.