I lived and worked in PA all year but my employer withheld NY taxes in error for most of the year. I completed the PA resident return as normal. How do I fill out NY?

[tittax12]

I started a NY non resident. How do I create a full refund from NY when the W2 shows NY  withholding?

[MayaD]

You have to file Non resident NY return and allocate your income in order to get a refund from NY state. 

I strongly recommend that you start with the nonresident return to make sure the calculation is done correctly. Here are the steps to allocate your income:

• On NY state return you will answer No to the question if you lived in NY.
• You don't have NY source income since you did not live or work in NY.
• Answer Yes to the question "Were all your wages earned in NY?
• On the next screen you will select the W2.
• choose to allocate by percentage .
• Enter 0% for income earned in NY.

[tittax12]

When reviewed I got this error message: Wages,Salaries, Etc,Col D New York wages were reported on federal Form W-2 but no wage income has been allocated to New York. This will cause the efiled return to be rejected by New York state.