I just realized that my employer filed alabama income taxes on me, I do not live or work in alabama. How can i get this money returned?

[k-toddknight]

(yes the employer has been notified and its has been fixed for the current year)

[ChristinaS · Accepted solution]

Yes. If your employer withheld the wrong state entirely by mistake, you can get it back. Just keep in mind that you do need to declare this income to the state you lived in and worked in (unless we are talking about Florida).

You need to file a nonresident Alabama return showing $0 income and showing the withholding from the W2. Because the income is $0 and the withholding is >$0, you may need to paper file this return. You should expect the possibility that Alabama will question this, so have your employer admit to the mistake in writing.

You can zero out the wages on the W2 in Box 16. The Alabama taxes paid in should be kept as is in Box 17.

You can try the Alabama site as well:

http://revenue.alabama.gov/eservices/mat-signup-help.cfm