Previous Employer mistakenly withheld NY taxes

[NastyLee]

I left my previous company in Seattle WA around March, and then relocated to NY for a new job. My old company asked me for a forwarding address in my last week there and I gave them the NY address which I will be relocating to.

8 month later now I find out the last paystub in old company was withholding NY state tax, I believe somehow they mistakenly used the NY address I gave them to proceed the last paystub and thus withheld NY state tax, while the whole time I was still working in WA (no state income tax) , not yet move to NY.

I raised the issue with my previous company and haven't yet got an answer. 

Several questions:

1. What's the chance am I getting a refund from my previous employer ? Are they even able to do so ?

2. If they refuse/cannot issue a refund, what should the correct W-2 looks like ?

3. I did a bit research and ppl are saying filing a NY non resident tax return in 2022 and claim $0 income in NY state. But in my case my income in NY is not $0 in 2021 ( I joined the new company in NY) and I'm currently an NY resident, can I still file the NY non resident tax return ?

Any other things I need to do/be aware of  to get my money back ?

Thank you very much in advance !

[Hal_Al]

Q. What's the chance am I getting a refund from my previous employer ?

A.  Almost none.

Q.  Are they even able to do so ?

A. Yes, theoretically.  From a practical standpoint, it's too much hassle for them.

Q.  If they refuse/cannot issue a refund, what should the correct W-2 looks like ?

A. WA in box 15, all your wages from the old employer in box 16 and 0 in box 17.  A second line showing NY in box 15, 0 in box 16 and the NY withholding in box 17. 

Q. Any other things I need to do/be aware of  to get my money back ?

A.   You'll have to file a part year resident NY return to get a refund.  Indicate that the income from the old employer is not NY source income. I suggest you attach a statement explaining the situation.  One potential problem: even though the final pay check was earned in WA, NY may consider  it NY income if it was actually received after you became a NY resident.  The W-2 showing NY is going to be a problem.