☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 12, 2023 2:41:38 PM

Wrong State Taxes Withheld

I live in VA.  When I started a new job in February 2022, they took out both VA and NY taxes (headquarters is in NY, but my location was in VA).  I noticed it after a month, but they took out $95 for NY by then.  How do I get the NY state tax refunded though?  My W-2 shows both VA and NY taxes withheld, but TurboTax says it doesn't think I need to file a NY tax return.  No matter what I try, it keeps saying I owe thousands to NY.  Any help is greatly appreciated!

0 1 85
1 Replies
Expert Alumni
Apr 12, 2023 3:02:42 PM

If you lived in Virginia all of 2022, then New York will be a Non-Resident state and should not tax anything that is not New York sourced income. Since you did the work in Virginia, that will be Virginia source income, even if the company is in New York. 

I suggest you begin with fresh data imported from the federal return.

 

  1. First, please check My Info in the Federal return and be sure the box is checked for Made money in another state
  2. Then go to the States section and click on the delete trashcan icon for both New York and Virginia
  3. Then, add New York first, and be sure it is a Non-Resident state and complete it
  4. It will show your federal income and ask you to allocate what is sourced in New York, so you can enter 0
  5. Next, add Virginia and be sure it is a Resident State
  6. It will show your federal income and ask you to allocate what is sourced in Virginia
     

This should prompt the allocation of income in both New York and Virginia.  This should resolve for the refund of the mistaken withholding in New York. 

If this does not completely solve the problem, please let us know more details, so we may better assist you.