My employer had been taxing my income under the wrong state for all of 2021. They just issued a corrected W-2 showing no taxes for the wrong state and the taxes being applied to the correct state. I'm so confused on how I'm filing this. Missouri refused to send me my refund when I initially filed my taxes stating that I owed additional taxes they couldn't clarify beyond that my spouse had income that had to be taxed. We don't live nor work in Missouri. Considering all my spouses income was within our home state Missouri has no claim on any of it. When attempting to file an amended return it wants to file Federal and State. I don't need to amend the federal only state as that was the error made by my employer. When I apply the amended information it takes the total previous refund for Missouri and moves it to our home state return but then turns around and says that total is now owed to Missouri. Missouri never provided a refund so I'm not sure how we would get anything back if we amended and paid Missouri money not owed. I'm so confused.
If you choose to mail in the Missouri amendment, you will not need to efile or mail in a Federal return for starters. It might be simpler to mail in the Missouri amendment.
As far as amending the original return is concerned, you claimed a refund and your "original column" should state that. However, there also should be an entry for refund actually received, if different. Look for that entry and put the amount you actually received, $0 if you received nothing. There also should be an entry for amount paid. This will also be $0 unless Missouri sent you a bill and you paid it. This reporting should square away what the state should refund you, along with the proper documentation.
And it might actually be necessary to amend. Look at the letter Missouri sent you. You might be able to submit the proof that their calculations are incorrect, and then they can fix it without amending. If in doubt, contact Audit Services, and they can help you understand your letter. See this link for more information: TurboTax Audit Support Center
Missouri's letter pretty much said they were assuming that my spouses income was from Social Security (neither of us are of age to collect Social Security) and therefore taxable by the state. It stated we could file an appeal against their decision. I'm not sure how to tell them they made up their reasoning to keep our money and have no grounds for many reasons. I did not see the option to change what I received. It had one section for what was in the original column but no section for actually received when I kept going through to complete the amended return. Which is why I am here asking how I properly file the amended return and actually get a refund back.
@JoshMcWilliams As I understand your situation you had no income in Missouri and no need to file a tax return in Missouri but you filed a tax return there showing that you had income in Missouri because your W2 was incorrect. So the return you filed with Missouri showed income and taxes paid on that income and Missouri kept it.
If I have all that right then you need to file a tax return with zero income on it and just the withholding on there. You need to file it by mail and attach a copy of the original W2 and the corrected W2. You should include a letter stating that your employer withheld taxes for Missouri in error and that the attached W2s show that. You should request a return of the original amount paid in.
Am I able to just pay Turbotax to fix the issues and resubmit? I keep trying to file only state and the desktop app just will not let me do just that only Federal and state or nothing at all. When I update the information to file zero taxes in Missouri it keeps saying either we now owe them $2k (which we don't because it still goes off of the original W-2 even with the updates). Or that we owe them nothing but paid nothing so we get nothing back but then our home state which we already paid the additional $2k says we owe nothing more but get nothing back regardless of what we put in because they do not take amended online only via mail but it does not give the option to file said taxes by mail without refiling federal taxes as well. So I'm down to a point that I will pay you guys just to do what your software should do but refuses to give the option of because I am now $2k short of taxes and some state owes me the taxes back but no options allow me to get a refund from either state.