I lived in NC all year. I got a bonus check from our Parent company who does business in NY. They held NY state income taxes even though I never worked a day in NY.

[tunnelgas]

This also happened last year and I had my taxes done by a local CPA and got all of the NY state income tax back.  I am trying to answer the questions properly to allow that to happen through TurboTax but I am evidently doing something wrong on both my NC (resident) and NY state tax returns.  Thanks in advance for the information.

[TomD8 · Accepted solution]

You'll have to file a non-resident NY return showing zero NY income in order to get a refund of those incorrectly withheld NY taxes.

I'm assuming you're not a telecommuter for a NY firm.  NY is one of a handful of states that tax out-of-state telecommuters.