Hi all,
I am a permanent resident of Washington state (obviously no state income tax). I work as a temporary W-2 contractor for a recruiting firm based in Virginia. They basically "match" me with a client hospital in Colorado state, and I have been working with this Colorado hospital client for all of 2020. The important part is that I worked 100% remotely from my home in Washington state for the entire year. I did not travel or physically work in Colorado at all.
The issue is....I had Colorado withholding on my paycheck in 2020 for an amount of around $8,500. In talking to my CPA attorney brother-in-law, he said I will absolutely get ALL that back. I am not liable for Colorado state taxes if I worked remotely in WA state, and I guess it was my consulting company "being lazy" (his words) by not figuring this out on the front end.
My question - what do I need to enter or do in TurboTax (and on which form) to show that I have zero tax liability to Colorado, and thus be able to see a CO refund of $8,500 in TurboTax?
I did find a discussion on TurboTax similar to my issue, and I am especially interested in this part that states:
"If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund".
However, I cannot find WHERE to do this above...? Basically, I need to see my CO Refund box turn green in TurboTax and zoom up to $8,500. I almost had a professional tax individual do my taxes this year just because of this issue, but I am thinking this is easy in TurboTax, and I am just missing something simple.
Thanks!
