Do I need to paper file? Allocation Worksheet for PY/NR:NY wages reported on Fed W2 but no wage income allocated to NY. The efiled return will be rejected by NY

[riebese]

I had NY State withholding mistakenly. I moved and started a job in IL but my address at the new job said NY so they withheld NY state taxes. In Turbotax I did NY State return and said part-year resident and that 0 income was from NY. Refund amount came up to be the total amount withheld, so all looked good. But when I try to efile, I get a Check this Entry: Allocation Worksheet for PY/NR: NY wages were reported on federal W2 but no wage income has been allocated to NY. This will cause the efiled return to be rejected by NYS. Do I need to paper file or can I get around this? See screen shot. Thanks

[DanielV01 · Accepted solution]

You are correct.  Paper filing is the solution here.  There are a few states that will automatically question a zero-income return when e-filed.  (NY is definitely in that group).  The return looks like it has been prepared correctly, so when you mail it in, you may wish to show NY proof that the income was earned in Illinois and that the NY withholdings were a mistake because you had already moved to Illinois.  This information will prevent processing delays.

[riebese]

Thank you for the quick reply, exactly what I needed to know.

[DanielV01]

You're welcome.

[arollins36]

Similar problem, but what do you recommend sending in as proof? I've been in Washington this whole year but I was kind of between AirBnBs and my parents' house before I actually signed a lease on an apartment for March 1st, so sending in my lease won't cover January & February.

[charles9]

Did you ever figure out what to send as proof?

[JohnW222]

@charles9

You might consider sending copies of documents such as utility bills and your driver's license to corroborate your residency in another state.

@arollins36

See answer above.  Just provide what you can, explain your situation for January and February.  The person looking at your return isn't going to want to spend a lot of time looking at your return, and probably won't question what you've presented.

[charles9]

thanks, will give it a try.

[Hidy2022]

Thanks for the suggestion here. I am also getting the same error from turbotax and cannot proceed to complete. I would prefer to prepare NY tax return via turbotax instead of doing it manually. I tried to enter $1 instead of zero, and this fixed the error. However, would there be any consequences? 

[ErnieS0]

No there are no consequences @Hidy2022. If your only income to New York is $1, then it is not taxable. There are no penalties or interest if you do not owe tax.

[haleydo]

I'm having the same situation. When you say file by mail, what form do you fill out or send? I've always used turbo tax and very confused the steps to rectify this.