New York follows what's call the "convenience of the employer" rule meaning many telecommuters must pay NY income tax if their employer considers their "office" to be the company's NY location, even if you step foot in the building.
NY says, "If you do not meet the requirements to be a resident, you may still owe New York tax as a nonresident if you have income from New York sources."
If you are positive you are not supposed to pay NY income tax, then say NO to "Were all of your wages and/or your self-employment income earned in New York State?"
Click Edit next to your W-2 on Your Form W-2 Summary.
Select "Allocate by Percentage."
The New York State Percentage will be 0.
Consider filing NY by mail with a note explaining that your employer withheld NY tax in error. Enclose a copy of your MN return showing all your income was reported to MN.
Speak to your employer. Perhaps they made to able to withhold no state tax and you can make quarterly estimated payments. Otherwise you will have to file a NY return every year.
If you are supposed to be paying NY tax, you can claim a credit on your MN return for double taxed income and tax paid to NY.
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