TT showing error for residency status, will it allow me to submit electronically?

1 reply
216 views

My company made a mistake and deducted Yonkers local tax from my payslips so this is appearing as local tax paid on my W-2. I didn't work or live in Yonkers in 2025 and have no Yonkers income.

So I need to get this money back.

TT is showing an error and is suggesting I select Yonkers Income Yes, but if I do this the amount I owe the state goes up by the nearly amount of local taxes I paid by mistake.

1. This doesn't seem right, is it?

2. Will TT allow me to submit electronically if I leave it as No and get this "error"?

AnnetteB6

Employee Tax Expert

No, you will not be able to file your return electronically if you leave the answer as 'no' for Yonkers income since your W-2 shows Yonkers income in error.

You should be sure to inform your employer about this error as soon as possible to try to prevent it from happening for 2026. Submit a new IT-2104 to report the requested change to your employer. Ideally, they should issue you a corrected W-2 for 2025, but they may not be able to get a refund of the Yonkers taxes that were withheld.

You can get those Yonkers withholdings back by making an override on your return using the desktop version of TurboTax. However, when a field is overridden, the return must be filed by mail. You can still file your Federal return electronically, but the NY return will need to be mailed. You will need to include a copy of your W-2 and a written statement saying that you were never a Yonkers resident and you did not have Yonkers source income in 2025. The income and tax withholdings for Yonkers is an error and you are requesting a refund of the taxes that were withheld. This statement will explain the change that you will make on the NY return.

Use these steps:

Click Forms in the upper right corner of the screen.
Click on either Y-203 TP (for taxpayer) or Y-203 SP (for spouse) for the person with the incorrect W-2.
Scroll until you can see line 3 of that Y-203, then right-click on that line 3 box.
Select Override and enter a zero in that box.
This will nullify the Yonkers tax calculation and allow all of the withholdings to be included with your other NY withholding amounts.