Withheld state income tax in North Carolina for 2016, but lived and worked in Texas the entire year. How do I recover money withheld?

[DS30 · Accepted solution]

If you are a resident of TX and worked remotely in TX for a NC company or just had NC withholdings take out of your wages in error, you will need to file a NC nonresident state income tax return to get a full refund of your NC withholdings.

In order to get the full refund of your NC state income tax withholdings, you will need to file a nonresident NC return but report zero "0" income from NC.  You must mail in this NC nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your NC return stating your situation (that your employer withheld NC taxes from your wages in error because you worked in and are a permanent resident of TX).

[MG2279]

When the state refuses to refund the money and the company won’t issue an updated W2, then what?