TurboTax doesn't allow me to e-file because my NY withholding was greater than 25% of NY wages. What are my choices?
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You will have to print and mail your return. Actually, it is NY state that won't let you e-file the NY return because state withholding is more than 25% of your NY wages.
Individual states control their e-filing systems and set certain parameters to identify returns that might not be legitimate or accurate. Returns that report an excessive* percentage of state tax withheld fall outside NY parameters for e-filing. By making you file by mail, it gives them the opportunity to have a human being confirm your withholding was correct.
Thanks for your reply last year.
This year (2023), I was a nonresident of NY, but the employer continued withholding from my retirement income. My understanding is NY state doesn't tax retirement income paid to a nonresident. Am I allowed to e-file this year to receive the refund or I still need to paper file since the "wage" was zero but NY tax was withheld?
Thanks again!
New York gives a break to retirees of non-taxable pension income up to $20,000 (unless you were a public employee, in which case it is completely exempt).
Here's more info on New York Pension Income.
You may have the same issue as in prior years when trying to Efile to NY, with no 'wages' but 'tax paid'. This situation was deemed to require a closer look by the taxing authorities of NY (along with various others). Click the link for more info on NY Filing Info for Non-Residents.
In your case, you should contact the Payor of your retirement income, and elect to NOT have New York tax withheld, since you are no longer a NY resident, and you won't have to file a NY return going forward.
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