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New Member
posted Jun 6, 2019 12:39:17 PM

Can I e-file nonresident return to recoup tax with 0 income

Can I recoup New York taxes held in error through nonresident return, and e-file for the taxes held when reporting wages for New York as '0"?  The refund is correct, but I cannot "fix the return" to e-file Federal or NY because wages of "0" are less than the taxes paid.  It says the returns will be rejected.  

0 7 1598
7 Replies
New Member
Jun 6, 2019 12:39:19 PM

One of the ways to get to efile a return with $0 income, is to include a "rounding error" of $1 as other income on your federal return (which should carry over to your state return).

To enter the $1 of rounding error:

  1. Click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
  2. Next click on “Wages and Income”
  3. Next click on "jump to full list" or “see all income”
  4. Scroll down the screen until to come to the section “Less Common Income”
  5. Choose "show more", then Miscellaneous Income
  6. Choose "Other Reportable Income" and enter this information here under other taxable income 
  7. You can title it "rounding" and enter $1


New Member
Jun 6, 2019 12:39:22 PM

Thank you for your response, however this arbitrary $1 figure is still less than the taxes withheld from the nonresident state I am trying to recover.  I was a NJ resident for the year and all of my wages are from NJ.

New Member
Jun 6, 2019 12:39:24 PM

Actually for an NY return, go to this website -  <a rel="nofollow" target="_blank" href="https://www.tax.ny.gov/bus/ads/webnys1.htm">https://www.tax.ny.gov/bus/ads/webnys1.htm</a>  Taxes withheld in error from NY can get a refund by filing online the NYS-1 and this NY website filing is free.

New Member
Jun 6, 2019 12:39:25 PM

I don't think that applies to my situation.  I'm wondering if a better approach for what I'm trying to accomplish is to note the taxes paid erroneously to NY on my NJ state return to see if that will allow me to claim a credit for those taxes.

New Member
Jun 6, 2019 12:39:27 PM

Or you can mail in an NY nonresident state income tax return and report $0 NY source income.

In order to get the full refund of your nonresident state income tax withholdings, you will need to file a nonresident return but report zero "0" income from the nonresident state.  You must mail in this nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your return stating your situation (that live and work exclusively in NJ but your employer withheld NY state income taxes from your wages in error).

Otherwise, file an NY nonresident return reporting your income as NY sourced, then claim a tax credit for the NY taxes paid to NY on your NJ resident state income tax return.

New Member
Jun 6, 2019 12:39:27 PM

I will try the first method, filing by mail unfortunately.  Thank you.

New Member
Jun 6, 2019 12:39:29 PM

You are welcome - Good Luck 🙂