- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Hi IrieLand,
Thank you for posting your question in the forum today.
Under normal circumstances, when you know you are about to move from one locale or state, you are required to notify your employer's HR department immediately so that payroll can be properly notified to make the necessary adjustments for income tax withholding. In your situation, unless you have not notified either department, please do it immediately.
But first, here is how it will and should be addressed for 2020 and 2021:
1) Since you were legally a NYC resident from January 1 through June 20, 2020, you would be required to note that change of address within your TurboTax program for 2020. When moving from state to state, you must always prepare your year-end residency state's tax return LAST. This way, you may either receive state income tax credit for that portion of the time your lived in NYC, so income earned and tax withheld from another state will be applied on the new state's tax return. Alternatively, you may only be required to report that specific income earned on each state's tax return, where your dates of residency take precedence.
Since the employee is expected to notify their employer in advance of any move, this would have been required in June of 2020.
2) With regard to 2021, there is nothing more you can do change the amount of withholding nor the locale of of your current address on your current paycheck, if your employer has not already done it for you. What will happen as in point # 1 above, as long as withholding tax is being withheld for NYC and NYS from your current paycheck, you will be required to file a FINAL 2021 NYS tax return, if not 2020 as well, to obtain a tax refund on the money that was incorrectly withheld. You will then prepare a 2021 Colorado income tax return and properly reflect all the income that was correctly reported on your 2021 year-end Form W-2 as being noted for NYS, which will most likely show a tax liability due Colorado. The state income tax refund you will eventually receive from NYS will eventually be turned over to Colorado when the funds are received.
Under some circumstances, you can avoid penalty for the non-payment of state income taxes by sending a letter to appeal any backlash from Colorado by stating the late response by your employer, since no taxes would have been paid all year long to Colorado.
It's a very awkward position to be in but, your employer must do their job and correct the state withholding tax tables for you as quickly as possible.
I hope this is helpful to you.
**Mark the post that answers your question by clicking on "Mark as Best Answer"