Are Payroll taxes withheld for a Nanny reported on a personal NY state return?
I use a payroll service and they have filed NY-45 forms for me quarterly, I reported my schedule H on my federal returns and used the estimated payments section to account for the withholdings the payroll service made to the Federal government. I also added in the state and local taxes which appear to have carried over to my NY state return. NY has now sent me a bill for the amount entered in the estimated payments for (state and local taxes) I added in the "federal return" section of turbo tax, it wasn't very clear that those amounts would carry over to the state return.
I should not have entered the NY state and local taxes withheld in the Federal section of turbo tax for the payroll taxes withheld?