My employer paid income tax to a state I did not live in. How do I report full refund from no-resident state to resident state?

[TomD8]

NC does not tax non-residents who never physically work within NC.  Nor are NC employers required to withhold NC state taxes from non-residents who never work in NC.  See Nonresident employees on page 4 of the NC Employers Tax Guide:

https://www.ncdor.gov/media/13802/open

So if you were a full-year resident of TX and you performed no work inside NC, then your income is not taxed by NC.  If your employer mistakenly withheld NC taxes, you can obtain a refund by filing a non-resident NC tax return on which you show the withholding but allocate zero income to NC.

The general rule for "sourcing" wages and personal services income is controlled by where the service is performed, not by the location of the employer.  Otherwise (for example) everyone who works for Ford Motor Company would be paying income tax to the State of Michigan.

https://www.irs.gov/pub/int_practice_units/ftc_c_10_02_05.pdf

[Leapy2000]

I live in New Hampshire With NO State taxes. I worked a job in Vermont which took State taxes. Upon doing my taxes through Turbo Tax, It's only refunding $45.00 Not the full refund that was paid in ? I've deleted and tried over and over again 5 times. 

[ErnieS0]

Part of your Vermont withholding went to pay your Vermont tax liability.

Even though you live in New Hampshire — a state with no income tax — you owe Vermont income tax if you physically worked in The Green Mountain State.

Vermont says if you were not a resident of Vermont for the full tax year but earned income in Vermont, then your income is the sum of the following types of income as long as they are required to be included in federal adjusted gross income:
 

• Rents and royalties from ownership of property located in Vermont
• Gains from the sale or exchange of Vermont property, including the sale of timber or timber rights
• Wages, salaries, commissions, or other income received for services performed in Vermont
• Income from every business, trade, profession, or occupation conducted in Vermont.
• Income previously deferred under a nonqualified deferred compensation plan and income derived from such previously deferred income.

Nonresident but Earned Vermont Income

@Leapy2000 

[Critter-3]

If you live in NH  and work in VT  then you must pay taxes to VT ... NH & VT  do not have a reciprocal agreement in place.   Now if NH  also had a state tax then you would have gotten a credit for the taxes you paid to VT on the NH return.  So the program is doing the return correctly. 

[MG112]

I moved from California to Washington in December 2021 My payroll administrator continued to send State taxes to California for 3 months before I could stop them. I sent a letter to California Franchise Tax Board requesting those funds be returned to me.  No response was received. Where to I get a Non Resident State Return form.

[Hotdog7823]

Can I get our money back? 

[BrittanyS]

If your company was based out of state, you did not live in, and income tax was paid to that state.  You will need to file a nonresident income tax return for that state.  You will complete the nonresident state first and then file your resident state second.  When you file the resident state, you will file for a credit for taxes paid to another state.  If you need assistance filing your state returns and where to enter the credit for taxes paid to another state, please respond to this thread listing which state is your nonresident state and which state is your resident state.  

@Hotdog7823 

[Leapy2000]

My Non-Resident state I paid into was Vermont. The state I live in is New Hampshire. I already filed through Turbo Tax. I'm not sure what to do at this point.

[CatinaT1]

Based on the information above, I'm not sure that you did anything wrong.

Did you file a non-resident Vermont return?

[John1949]

My turbotax South Carolina return is asking me thee double taxed income amount.   I moved to South Carolina but forgot to change my state withholding

[John1949]

I paid state income tax to Virginia, but i lived in South Carolina.   Turbotax is asking me for the double taxed income amount.  What amount do i use?

[HopeS]

You will file two Part-Year Resident returns for Virginia and South Carolina in order to allocate income as part-year resident of both States. See the link below on how to allocate income between the States.

See the steps below:

If you need to add this information after you've begun your return:

1. Sign in to Turbo Tax and select Personal Info.
2. A Personal info summary screen will pop up.
3. Question number 2 asks you the state(s) you lived in during 2022. Select your state of residence from a dropdown menu.
4. You'll also be asked if you lived in another state in 2022. Answer Yes and a new section will appear asking for your previous state of residence. Select the other state you lived in.
5. Fill out the date of when you moved to your current state.
6. If the rest of your information is accurate, select the blue Continue button in the lower-right corner of the screen.

After you finish your federal return, you'll automatically move to the State section, where you'll see your part-year states listed. We suggest you prepare the return for your former state first, followed by the return for the state you currently live in.

How to Allocate (split) income for par-year state return?

See the article below on Part-Year Resident returns

Multiple States 

@John1949 

[nmoto2259]

In 2022 year----

I lived in Indiana but worked in OH and received a W2 where OH took out State tax and Local tax.

I then moved to IL and started working there from July through December 2022.   1/2 year living in Indiana but working in OH and the other half living and working in IL.   

So do I file State returns in Illinois and OH or IL and Indiana?   

Please help.

[TomD8]

You must file a part-year resident tax return in both IL and IN.

In addition, you must file a non-resident OH return, on which you allocate zero income to OH.  That's because IN and OH have tax reciprocity.  Reciprocity means that the W2 income of IN residents who work in OH is not taxable by the state of Ohio; it is taxable only by their resident state of IN.  Your OH employer should not have withheld OH taxes from your pay.  Filing a non-resident OH return will result in those incorrectly withheld OH taxes being refunded to you.  You will have to pay IN income tax on all your earnings as an IN resident.