Previous employer has issues a Misc-refund

[MacATDBB]

Hey all.  My former employer from three years ago has sent me a small check ($$$) on a form titled "earnings statement" and explained that this is a Miscellaneous Refund due to an error having been found in their payroll system.  The problem is I now live in a different state - will this payment require that I file 2023 taxes in my current state and the former state where the company that issued the refund was located?

[JamesG1]

Perhaps.

It would depend upon the forrmer state's Nonresident state tax return filing requirements.

There also may be a reciprocal agreement between the two states that may not require you file the income with the former state.

What is the former state and what is the state where you now live?

@MacATDBB 

[MacATDBB]

Hi @JamesG1 - thanks for replying! Current state is MI, former state was NY.  

[Mike9241]

what's it for? if you got no tax benefit from the overpayment its receipt would be nontaxable and not even reportable 

[MacATDBB]

@Mike9241 - when I spoke to the helpdesk they could only say they'd been taking out too much deductions from the paychecks so this was a refund.  There's no paperwork to go with the check giving a better explanation.  

[JulieS · Accepted solution]

No, it doesn't sound like this is taxable income to you. 

If the former employer refunded something that would affect your tax return, they are required to send you a tax form that helps you figure out how to report the amount. 

For example if the amount is additional wages, they are required to send you a corrected W-2. 

Either way, you would only need to file a New York return as a nonresident if your NY income were $4000 or more.