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.
