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How do I recover taxes my employer took out for two states? I should have only been taxed for one.

My employer took out taxes for VA and NM for several months before I noticed it.  I moved to NM early Jan. so I should get back all the taxes paid erroneously to VA, but don't know how.  I was told to file a Form 763S (Non-resident Special Return), but don't know how to get TurboTax to do this.

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1 Reply
JulieCo
New Member

How do I recover taxes my employer took out for two states? I should have only been taxed for one.

Yes, a non-resident return can be created for VA as long as your W-2 form shows taxes paid to both VA and NM and you entered that information into TurboTax. You will be charged for the purchase of the software to create an additional state return, but it will create the tax return for you so that you can get your refund.  See the steps outlined below to add a state, plus see the tips noted at bottom of this answer for when you create the non-resident return.  

To Add an Additional State to your tax file in a CD/Download version of TurboTax:

  1. Click on Online at the very top of the desktop program screen. 
  2. Click on Download State - you will then be asked to save your current return.
  3. You will be brought to the TurboTax store where you can select which state return you want to purchase and download.
To ensure accurate calculations, TurboTax strongly recommends preparing your nonresident state return before you prepare any resident or part-year state returns. More tips:
  • Select the long form (if the option is available) even if TurboTax defaults to the short form.
  • Only report the income attributable to the nonresident state.
  • If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund.




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