Company error withholding wrong state taxes

[fcrivero]

I recently got hired and work in WA State where there is no state tax. On my first paycheck noticed three NY state taxes withheld (NY Withholding, NY EE Family Leave and NY Disability). HR by mistake input a wrong state for me in their system. How/were in turbotax can I request those wrongful withheld taxes to be returned back to me?

Thanks in advance

[Mike9241]

is recently 2020 or 2021? first, contact your employer.  they messed up and it should be them that refunds the wrong withholding and issues a corrected w-2. 

if for 2020 you could do it yourself but that requires you to file a nonresident return for NY.  if for 2021, you would have to wait until you could file a 2021 return - sometime in 2022. 

[fcrivero]

Hello, thanks for replying. How do I file a nonresident return using Turbotax? Where do I specify I never worked in that state.Thanks!

[SteamTrain]

@fcrivero     Wait.....

1) Are you actually working at, or assigned to an official company office that is physically located within WA state?

or

2) Are you telecommuting to a NY office , that is physically located in NY?

....it makes a difference

[fcrivero]

I am assignied to and working in WA state. 

[SteamTrain]

@fcrivero 

Then as @Mike9241  noted you would have to file a nonresident NY tax return.  During the NY non-resident interview you should be able to indicate that none of the W-2 income was NY income.    You might have to print and mail-file the NY tax forms, since the withholding exceeds your actual NY income, but I'm not sure that will apply in this case.  You'll se when you try to e-file the NY part....if it doesn't let you, then you'll have to print and mail file.

On the My Info page, you have to indicate you had income from another state, and indicate NY as that other state.  That will trigger the NY nonresident forms......then you can go to the sate section to complete it (as long as the Federal part is entirely filled out first)

_________________________

The reason I asked about telecommuting is that NY assesses income tax on W-2 workers who telecommute to a NY office from out-of-state, and are only telecommuting/working from home when there is no actual Company office or job site in the state they are telecommuting from.  The companies located in NY have to strictly follow that rule, or they get in trouble with the NY Tax Dept.   

I hope you did talk to your company HR/Payroll people to make sure that was not the case for you, they admit they made a mistake, and that you've had them stop NY withholding long before now.