Can I get State taxes refunded for a state I didn't work in?

[jentjd]

I live in Texas and work remotely for a company in Arizona. My company took out some AZ state taxes for a few weeks until I alerted them and they stopped. Am I required to file a Non-resident return? Is there a way to get the AZ taxes back that were taken out?

[DoninGA]

To get a refund of the AZ taxes withheld from your wages you will have to file a non-resident Arizona state income tax return.

[jentjd]

Thanks for the response. That makes sense to me, except when I fill out the 140NR information in TurboTax, it's indicating that I owe additional taxes.  How do I get turbo tax to recognize that I'm actually due to be refunded for the taxes that were withheld?

[DoninGA]

Even though you did not work in the state, the state income tax were withheld from your wages.  So in the My Info section of the program you would select that you worked in another state so the program will give you a non-resident tax return.  When starting the non-resident return the program should have asked you to enter the amount of income that was earned in that state.  You should have entered 0.

Did you not enter 0 income on the AZ tax return?

[jentjd]

Here is a copy/paste what I see in the My Info Section of Turbotax. I've tried this with both Yes and No checked and it's still calculating taxes owed for AZ. 

Did either of you make money in any other states?

This helps us know if you need to file a state return for this income. Learn more

Here are some examples of what counts as making money in another state:

• Living in one state and working in another
• Owning or inheriting a business, farm or rental property
• Selling a home
• Gambling winnings

Yes, we made money in states other than Texas.

No, we didn't make money in any other states.

Then in the State Tax Form. It's only asking me how much Interest Income and Dividend Income was earned in Arizona. It is not asking me how much wage income was earned in AZ.  I am putting $0 for both Interest and Dividend, but it's still calculating taxes owed. 

Arizona Income

Enter the Arizona portion of each federal amount shown. If none, enter zero. Learn More

Federal Amount   Arizona Amount   Interest Income $XX,XXX   $0   Dividend Income $XX,XXX   $0

[DoninGA]

@jentjd Best to contact TurboTax support for assistance on the AZ state tax return.

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