My employer paid income tax to a state I did not live in, and won't issue a correction.

[ErnieS0]

The general procedure is the file a nonresident return and change your income to $0 if your employer withheld tax for a state where you did not live or work.

States have different procedures. File by mail because your return will not match your W-2. Send your W-2 showing the other state’s income and tax withheld. 

Generally, you will also need to attach a statement (and sometimes a letter from your employer) saying you should not have had tax withheld. It’s also a good idea to include a copy of your home state return showing you reported all your income.

If you tell us what state you live in and what state had the wrong withholding we can be more specific.

@Courtneybarrick 

[Courtneybarrick]

Thanks for the quick response! My ER withheld PA state taxes for 1/1/22-2/11/22, as I then started a new job with a different company who began correctly withholding NC state taxes (where I currently live). Because I am no longer with the previous company, I am unable to reach out to them to request a new W-2. I tried filing on Turbo Tax as non-resident for PA, but I kept getting an error. It would then take me to a page and prompt me to select either partial or full PA resident, which is not the case. I lived in NC all of 2022. I just want to make sure I file them correctly!

[DianeW777]

You are not required to pay tax on wages that were not earned while physically present in Pennsylvania (PA). As a nonresident, you pay PA income tax on compensation for services performed in PA.

• Instructions for PA Nonresidents

Make sure you do have PA, wages and the PA state withholding in your federal W-2 entry just as it is shown. Also, do not check the box in the Personal Info that you have 'Other State' income.  In your case, you did not work in PA or have wages that are subject to PA tax.

When you are in your TurboTax return you will answer questions about the wages associated with PA on your W-2.

1. Select Your State Return or State Tab for TurboTax Desktop
2. Edit beside your PA return
3. Confirm your nonresident status in the General Info section (if you removed any checkbox in your personal info for other state you should be able to select nonresident).
4. Update Income and Adjustments
5. Edit beside the W-2 > Select the checkbox 'Entire amount of this income is not taxable in PA.'
6. Continue > Continue > Done
7. This will remove the wages from being taxed in PA and you should see a full refund of the PA state tax withholding.
8. See the images below.

@Courtneybarrick 

[Courtneybarrick]

Thank you so much for the information and instruction. I will give it another shot after work this evening, however this brings me to another question.. The amount withheld for PA should technically be NC, so how do I edit my NC tax to include that?

[HopeS]

Since you worked in PA and lived in PA from 1/1/2022 - 2/12/2022 you are considered a part-year resident of PA and also a part-year resident of NC. Therefore, you will need to file 2 State tax returns for 2023. If you are not able to contact your former job to request a copy of your W-2, then review your old pay stub to see what payroll provider they were using such as ADP, and try to contact ADP.

There are other options to explore to obtain your W-2 including contacting the IRS (Taxpayers Assistance). Please review the link below:

What to do if you did not receive a W-2

Please be aware that it is important that you set up your personal information correctly since you lived in 2 separate states in 2022.  See the steps and the link  below:

If you need to add this information after you've begun your return:

1. Sign in to Turbo Tax and select Personal Info.
2. A Personal info summary screen will pop up.
3. Question number 2 asks you the state(s) you lived in during 2022. Select your state of residence from a dropdown menu.
4. You'll also be asked if you lived in another state in 2022. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
5. Fill out the date of when you moved to your current state.
6. If the rest of your information is accurate, select the blue Continue button in the lower-right corner of the screen.

How to File Part -Year Resident Returns

@Courtneybarrick 

[Courtneybarrick]

I did not live in PA 1/1/22-2/11/22. I lived in NC throughout the entire year of 2022. My job was remote. 

[BrittanyS]

If you paid in PA tax, but live in NC you will need to prepare two state returns.  One non-resident return for PA and one resident return for NC.  When filing the returns make sure to file PA first as you can claim a credit on your NC return for taxes paid to another state.  

To file a non-resident return.  Follow these steps:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
3. At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down.
4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

@Courtneybarrick 

[Courtneybarrick]

I followed these steps as instructed, but still getting flagged after the review.

[DMarkM1]

Yes, that is correct.  If you check "Yes, this is the final PA return" that assumes a resident status in the current year.  You need to return to the PA state interview and click through to the question asking about the "Final PA Return" and select "No".

[Courtneybarrick]

But this will be my final return for PA, as I am no longer a resident of PA.

[DMarkM1]

The selection there only affects whether or not PA sends you tax forms for TY 2023.  To e-file your return you will need to select "No, it is not the final PA return."  

[Courtneybarrick]

Thank you so much. I will update it now.