Diversity Income Tax Service

When a taxpayer have one W-2 with both federal and state wages/withholdings and another with only state information and no federal.

Tax preparers can only file a single federal tax return reporting all customer income from all W-2s, and separate state returns as required.

If the forms are from the same employer and the federal information in boxes 1-14 is the same, some software will allow tax preparers to combine the state details on a single entry by adding an extra state line in boxes 15-17.

Attention Tax Preparers

For the 2025 tax year (returns filed in 2026), tax preparers need to know about key changes from the One, Big, Beautiful Bill (OBBB) Act, including increased standard deductions, SALT deduction (the new SALT deduction limit is temporary (effective for tax years 2025-2029) and subject to phase-out limitations based on Modified Adjusted Gross Income (MAGI), new temporary deductions for tips and overtime, adjustments to the Child Tax Credit, and the permanent extension of the Tax Cuts and Jobs Act (TCJA) tax rates.