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

[DoninGA]

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@Slclsu22 wrote:

My legal address was in Florida but I never worked there last year.  I worked in Several states including Texas and became a legal resident of Texas in August.  My employer reported all of my wages to Florida but I never worked there.  Is this legal?

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Florida does not have a personal income tax so there were no Florida state taxes withheld from your wages.  Texas does not have a personal income tax so there would not be any Texas state taxes withheld from your wages.

[Slclsu22]

I’m sorry....I left out that I was laid off and am trying to file for unemployment in Texas but my employer sent my wages to Florida

[DoninGA]

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@Slclsu22 wrote:

I’m sorry....I left out that I was laid off and am trying to file for unemployment in Texas but my employer sent my wages to Florida

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Your employer would have to issue a corrected W-2 to show the wages earned in Texas.  

[Slclsu22]

So, I worked in several states from Jan to Nov but they are sending wages to where they claimed I lived or to the address they had on file.  I lived in hotels for almost 11 months.  I thought they were supposed to send wages to the actual states I worked in.  They claimed that they have done a w-2 correction but are saying they are claiming Florida for most of the year and Texas for 3 months since I notified them of my move.  I thought I would need to do a multistate for unemployment since I worked in multiple states.  

[tador]

I am in the same situation. My company didn't correct address change and withheld NY taxes for 4 months of 2019. I am using freetaxusa.com software, and on a non-resident NY return, I checked that I did NOT live in NY and entered $0 for NY wages, and all taxes that I paid appear in refund correctly (Which is great) BUT the software is NOT allowing to submit returns because I am claiming $0 for NY but my W2 shows a pretty chunk of money as NY wages in box 16. Any other ideas?

[KrisD15]

You could try using TurboTax or ask your question on the Freetaxusa.com website. 

[jelyla]

What if your employer keeps taking the wrong state tax out, and refuses to stop even though you have asked several times? Can't the state department of revenue do something to help its taxpayers with this issue?

[AkinaLO]

You can probably contact someone at your state Department of Revenue for advice. Please refer to the article below to contact your state.

How do I contact my state Department of Revenue? - Community

[kaffeinem]

I also need to file a nonresident NY return to claim taxes withheld incorrectly on my W2. I followed these instructions, making sure I listed not a resident, and allocated wages by percentage, setting it to 0% for New York. However, when I try to file, Turbo-Tax won't let me saying that my return will be rejected because the 0% allocated to New York does not match my W2. How do I file this return? I cannot mail it because NY requires returns prepared via software are e-filed.

[anonomomIL]

Hi-this is our exact situation! Spouse works for NY parent company but is based in Illinois so we pay income tax here-they accidentally did NY tax for a couple of months and we are cleaning up their mistake. I followed your advice-thank you so much by the way-but when I go to transmit, it tells me that NY will reject my return since I put 0% for the income earned there.  Can you advise? I can't submit anything unless I correct this.

Is submitting Illinois and Feds an option and then just mailing the NY?

[AmyC]

NY law states that you must pay tax on NY source income. If you have NY source income, you pay them and take a credit on your resident state.

@kaffeinem

@anonomomIL

If you are telecommuting, working from home, for a company in NY, then you must pay NY tax on the income. NY taxes telecommuters.

If you truly do not have NY source income, you may want to put $1 just to push the return through. That way there is no tax liability.

If you should pay NY tax, follow these steps:

You will need to prepare the states in a special order. You may need to delete both states and begin again.

1. First, prepare your non-resident NY return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
2. THEN prepare your resident state return and it will generate a credit for your income already being taxed in the non-resident state.
3. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

[JGK68]

Seems like there are several us that have this situation - our employer withheld taxes for NY State but we did not live or work in NY State in the year it was withheld. In my case I was overseas for a number of years and when I returned, I returned to another state, but my employer withheld taxes to NY State for a couple of pay periods.

In any case, entering 0 or some minimal amount NY source income doesn't resolve the issue.  I tried replacing the 0 I originally entered with $1 and got the error below.  Again the issue is not only is the system not allowing you efile is 0 or minimal.   Seems like the only option would be to file by paper, but it seems like there is a requirement to file electronically.

NOTE - You cannot file your New York return electronically if you have a W-2 with New York withholding greater than 25% of New York wages. You can, however, e-file your Federal return in this situation.

[cdocean79]

I've done what you suggested and everything worked great.  But my employer deducted the NY PFL and I cannot seem to get a refund to show.  I get 0 for income but I would expect to see a credit for the amount I paid into the NYS PFL...suggestions?

[DanielV01]

@cdocean79

I've done what you suggested and everything worked great.  But my employer deducted the NY PFL and I cannot seem to get a refund to show.  I get 0 for income but I would expect to see a credit for the amount I paid into the NYS PFL...suggestions?

You will want to contact your employer to have a refund of NYS PFL withheld to be refunded.  This is not claimed on the tax return.  This website  NY Paid Family Leave Memorandum explains as follows:

Deduction Refund Processing

Refund requests for an erroneously processed Paid Family Leave deduction should be submitted via email by the Agency Payroll Officer to the Tax and Compliance mailbox. The email subject line should state “Paid Family Leave Refund Request.” The Agency Payroll Officer should provide the: Emplid, Employee Name, and Refund Amount.  (Italics added)

[maryadrew32]

Did you get a resolution to this. I am in the same situation. Worked and lived in TN but employer is in GA and they withheld GA taxes. Not sure what to do.