Welcome to Sprintax Returns!

You can use these guides to get started

Difference in Federal and State wages - tax treaty exemption

If you have a difference in the federal and state wages and the reason is income exempt under a tax treaty, you should make sure that you have the income document, reporting the exempt income. That is usually the 1042-S form with code 20 in box 1. If you do not have this document yet your federal wages are less than your state wages, it is best to contact your employer and ask them if you shouldn't have another income document issued to report the difference.

Here is an example of how to proceed in Sprintax (Step 3 - Let's talk money): 

mceclip0.png

mceclip1.png

If the difference is not coming from a tax treaty applied, please check please check the following article: https://sprintaxhelp.zendesk.com/hc/en-us/articles/9435051395485-Federal-wages-lower-than-the-state-wages 

Was this article helpful?

0 out of 4 found this helpful