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I wish, I wish


schirallicpa

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Yes, it would be nice if the IRS Wage & Income transcripts had the state info as well -  at least the state income tax withheld. 

Tax sharing information between the IRS and the states has to be done through an agreement with each state.  The IRS has tax sharing agreements with all but 2 states (AK, WY), but the agreement determines what info is shared.  If all the states are sharing the W-2 info, there is no reason I can think of why the state info could not be included on the W&I transcript, other than bureaucratic inertia.

Since, the W-2 information does not go directly to the IRS, but to the SSA there might be some issue there, such as SSA having an agreement with the states, too.

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MA has a funny system; they tell you (if you call) that they have NO access to prior-year withheld tax figures.  However, if you file a prior-year return and make an educated guess as to tax withheld, somehow they can ALWAYS tell you how close you were to the actual.  So what we've always done is make our best guess at state tax withheld (for W2s, anyway) and file 'em.  But yes, it would be lovely if the IRS could get that info.  After all, for some people the state income tax is still a useful deduction on Schedule A - it's an important figure, even for the IRS.

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3 hours ago, Abby Normal said:

The IRS gets W2 info from Social Security, not from the states. It was a foolish programming decision to not include it on the wage transcript.

Transcripts have been available long before there were any tax sharing information agreements, so there was nothing to program. Even as late as 2015, there were only 26 states involved.  Perhaps, now that all the taxing states are on board, it can become a reality.   It would certainly be a big help.  

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