I am a non-voluntary remote employee. I moved from NYS in 2023. In 2024, my company erroneously withheld NYS and NYC income tax. I had to file with a corrected W2 removing the taxes to NYS (it tooks months for my company to correct). I had to file extensions and when all was said and done, Arizona corrected my filing using the original W2, not the corrected. Still working on resolving this.
2024 w2 shows NYS withholding only on my annual bonus. Is this correct? How do I file? Also, my W2 indicates TOTAL STATE withholding, but State is empty until you get to the NYS income and withholding which is less then the TOTAL STATE. Additionally, The TOTAL STATE amount is the correct total of what was withheld on my paycheck stubs that include both the NYS amount and the AZ amount (Arizona withholding is explicitly stated on the stub).
Apologies, forgot to add the questions:
Is the withholding only on the bonus correct? eg do I owe NYS tax on the annual bonus amount?
What do I do regarding the lack of AZ identification on my W2? Is it an issue?
Additionally, I just realized, all of the income on my W2 is listed as NYS
Assuming the bonus is related to the same work that your regular wages are made from, then the bonus would still only be taxed by AZ.
So you would file a return for NYS with $0 income and the amount of taxes withheld that is shown on the W2 so you can get a refund of the taxes withheld.
Then you would file your AZ return and count ALL income as AZ taxable, meaning you may end up owing since taxes for the bonus were paid to the wrong state.