State tax filing

@Aminy 

It sounds like your employer withheld, given the paper filing requirement.

Complete an IT-203-B, list all the workdays as days worked outside of the State. Enter 0 on days worked from home (on the basis you are not subject to the convenience rule under 132.18(a) to require an inclusion of days on this line). 

You can include a statement with your tax return that says: 

I am not subject to tax under New York State Sec. 132.18(a). Which states, in pertinent part, “If a nonresident employee . . . performs services for his employer both within and without New York State, his income derived from New York State sources includes that proportion of his total compensation for services rendered as an employee which the total number of working days employed within New York State bears to the total number of working days employed both within and without New York State.”

I did not perform services both within and without New York State during the tax year, as I worked 100% remotely from my residence outside of the State. Therefore, I am not subject to the convenience of the employer rule. This point is supported in case law, Matter of Arthur Hull Hayes, where the court stated  "only if, and to the extent that, his services were rendered within this State. Compensation for personal services rendered by a nonresident individual wholly without the State is not included in his New York adjusted gross income, regardless of the fact that payment may be made from a point within the State".

You may get a desk audit notice asking you to obtain a letter from your employer, confirming you did not work any days in New York State. It sounds like your employer will be cooperative (given the W-2 adjustment) in providing that. After the submission of the letter, they should issue the refund (as experience has shown me). Just remember to respond timely.