I live and work in NYC but my job deducted money as if I lived outside of NYC. What do I do?

This will get reconciled on your NY State return.  Your city tax is also calculated on the NY State return.  If your employer did not withhold the tax, then you will likely owe after the NY State return is prepared, but all you need to do then is file the return and pay the balance, and you will be squared away.

Having said this, you may want to talk to your employer so that the correct tax is withheld.

Thank you for your reply. I did enter the section1127 amount from my W2 in turbotax. However, the amount did not show up on the state form. The NYC field on the return was empty. I searched in turbotax for the NYC form and it did not come up. Now I filed the return and Paid alot of money to New York state. In ither words, I paid twice to New York stae for the NYC amount. What do I do now,

I look forward to your reply. Thank you.