Overpaid state taxes

[Michelle2001_]

If state taxes were incorrectly held from my paycheck due to moving to a new state, and my employer filed a refund request and received the refund for these funds, how do I get my refund? 

[AmyC]

The employer got your money back so the employer owes it to you. The w2 should not reflect state wages and taxes paid since they were refunded.

[Michelle2001_]

Do you mean the employees revised W2? And is it safe to say, the W2 should only be revised once the employee was refunded by the employer?  Is any further action required on behalf of the employee? Last, can the employee still file for a refund directly with the state? 

[AmyC]

1. Revised w2 - not sure what you have and what it shows. If the state has taken your social security number from the employer and credited your payment back to them, there is no credit left in your account with the state so you would not be able to get a refund easily. Maybe the employer said they would file and didn't if your w2 shows the tax paid.

2. If the employer paid the employee back the funds, then the employee no longer paid the tax and the w2 should be blank.

3. Talk to the employer. Did they file for a refund? Did they get the money? Are they returning it to you?

4. If you have a w2 showing state tax paid and records of your conversations with your employer, then you may be able to file a tax return and prove your case so that they can go after the employer again. This could be a very long process for them to figure out the issue and your rebuttal. You may get a refund right away and then a notice or you may not get a refund and just a letter.

[Michelle2001_]

Thank you for this feedback.  The situation is as follows - employer incorrectly withheld state taxes from my paycheck. I requested a revised W2 with the correct state of employment noted, to then file a refund claim for the overheld state taxes [from the state I was no longer employed in nor lived]. Employer filed for a refund on my behalf (without my knowledge), received the refund and amended my W2 noting withholdings I was supposed to pay opposed to what I did pay along with the correct state employment information. 

[AmyC]

Your employer owes you a refund of the money they claimed in your name for your social security number. You would not need to file a tax return unless there was other taxable income and taxes paid for the portion of time you did live there.

[Michelle2001_]

Thank you!