My W-2's Box 20 just says New York, which TurboTax says is not accepted

[PureNinjaHelmet]

I've got the following notice when going through the final review:

Form W-2 (employer name): Box 20 New York locality name "NEW YORK" is not among those accepted by the NY Dept. of Taxation and Finance. "NYC" for New York City and "YON" for Yonkers are in the acceptable list.

The problem is, box 20 in my W-2 literally just says "NEW YORK". I did not work in either New York City or Yonkers. What should I do?

[LenaH]

Even if you did not work in NYC or Yonkers, if you live in New York City, you are a resident of the city and owe a local tax. You have to choose NYC from the drop-down menu as New York is the locality name for NYC.

The requirements to be a New York City resident are the same as those needed to be a New York State resident. You are a New York City resident if:

• your domicile is New York City; or
• you have a permanent place of abode there and you spend 184 days or more in the city.

All city residents’ income, no matter where it is earned, is subject to New York City personal income tax. Nonresidents of New York City are not liable for New York City personal income tax.

The rules regarding New York City domicile are also the same as for New York State domicile. If your permanent and primary residence that you intend to return to and/or remain in after being away is located in one of the five boroughs of New York City, it is considered a New York City domicile.

Your New York City domicile does not change until you can demonstrate with clear and convincing evidence that you have abandoned your city domicile and established a new domicile outside New York City. Even if you live in a location outside of the city for a period of time, if it’s not the place you attach yourself to and intend to return to, it’s not your domicile. Your domicile will still be New York City and you will still be considered a New York City resident.

For more information see, IT-201-I, Instructions for Form IT-201 Full-Year Resident Income Tax Return.

If you did not live in New York City, then you will get a refund of local taxes paid for NYC. 

[PureNinjaHelmet]

I do not live in NYC. This is remote employment, my employer is not located in New York. I feel like I shouldn't fill it in as "NYC" since that's A) not what my W-2 says, B) not where I live, and C) not where I worked.

[LenaH · Accepted solution]

New York City and Yonkers are the only locations that have their own local income tax on top of the state tax. Since your W-2 stated New York, and not Yonkers, then the best choice would be NYC (New York City). If you would like to clarify whether it was for NYC or Yonkers, then please contact your employer. 

In addition, since you do not live in NYC or Yonkers, please tell your employer to stop withholding local income tax as it is not needed in your situation. 

@PureNinjaHelmet

[Edited 2/12/22 l 11:22AM]