What if the state income and federal income don’t match on my 1099/W-2 forms?

• Discrepancies between state and federal income amounts may occur for several valid reasons, such as partial-year residency, state-specific exemptions, or adjustments that apply only at the state or federal level.

• While these differences are acceptable in certain situations, we recommend reviewing the reported amounts carefully to ensure accuracy. Inaccurate or inconsistent income reporting may lead to issues during state-level filing or result in follow-up inquiries.

• If the state income is intended to differ from the federal amount, it may be reported as such. However, if no such differences apply, aligning the two amounts can help streamline the filing process and reduce the likelihood of errors.