I was taxed in the wrong state. How do I get the n...
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Returning Member

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

I live/work in CA but my company is out in NY. My company switched PEOs and my employer accidentally marked me as a NY employee instead of CA so I paid NY income tax for the whole year. I see that it says to put $0 in the allocation to NY for the nonresident form so I can get all the income tax refunded to me so I can properly pay CA income taxes. However, when I put $0 allocation to NY in the form it keeps telling me I need to fix the issue or else it won't let me submit the form.
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Expert Alumni

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

You do report your NY income and tax paid there on your New York Non-Resident return.

 

On your California Resident return, report all your income and you will get credit for tax paid to NY.

 

Click this link for instructions on How to File a Non-Resident Return

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Returning Member

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

I'm not sure if I'm setting this up correctly. So I went back to the NY nonresident form and just entered in the income tax information like normal, but instead of refunding my entire NY income tax amount, it's still saying I owe money. However, for CA form, it's giving me a credit back for the full amount that I would've owed CA. My income taxes in CA should be lower than the income taxes I paid NY so I technically should be getting money back here. I'm not sure if I'm just still not entering in the NY information correctly.

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Expert Alumni

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

If you were taxed correctly on your NY income, you should about break even (maybe get a little back, or owe a bit).

 

CA probably won't give you a refund, since you didn't pay any tax to them. 

 

Review your main State Tax Forms to see what the calculations were. 

 

Since we can't see your return in this forum, click this for info on How to Get a Live Review 

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Returning Member

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

NY taxed me ~3500 on this years W2 form and originally before I fixed the CA return it said I would owe CA ~3200. After I fixed the CA form it credited me that same amount so it put me at $0 so I won't be getting anything back from CA (which makes sense to me), but now after adjusting NY it says I owe them $33? I'm unsure why I would owe anything to NY period when I'm trying to correct that I haven't worked in NY at all during 2019 so I shouldn't have been taxed by NY to begin with. So do I just owe NY $33 now for some reason and then that difference of $300 is just lost? 

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Expert Alumni

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

I am not sure why you are having to pay $33 for the State of New York, make sure that you are filing Non-Resident and that it shows that you received $0 income from the State of New York.  Here is how you can check your State Return:

 

1. While in your Tax Home,

2. Select State from the left side of your screen,

3. Select Your State Returns from the top of your screen,

4. Follow the on-screen prompts to ensure that everything was entered correctly.

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I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

@ReginaM I double checked and I am in fact filing a nonresident NY form. I have tried putting $0 income from NY before but it won't let me submit it and keeps telling me to fix my error. It won't let me file my returns until I put something other than 0.

NYAllocation.pngError.png

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Expert Alumni

I was taxed in the wrong state. How do I get the nonresident form to accept 0 allocation?

You probably owe NY $33 because there were recent changes in the Payroll Withholding Tables that are affecting you.

 

Your employer just held $33 less tax than they should have on your income.  You can change your NY withholding, or better yet, have your employer withhold only CA tax, so you don't need to file to NY at all. 

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