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Level 2
posted Feb 23, 2021 12:50:59 PM

updating State Tax Withholding on W2

 

As I will have nothing to do with NY anymore after my move and my income is not NY-sourced anymore, what's the implication of having an NY Tax Withholding on my W2?

 

Will I be able to file NY State Tax form and get the refund? I've read some articles and saw the form is rejected when someone put $0 for NY sourced income and the total amount withheld for NY.

 

 

 

0 2 390
2 Replies
Expert Alumni
Feb 23, 2021 1:19:31 PM

Basically you will be making an interest free loan to the State of New York.  Next year you will file a New York non-resident tax return, and you will receive a full refund of the New York tax withheld (assuming you neither work nor live in New York).  Is it legal for you Company to not withhold the proper state tax for you, probably not.  

 

I suggest you fill out an Oregon Form OR-4-W and submit to your company's payroll department along with a letter telling them to stop withholding New York state tax.

Level 2
Feb 23, 2021 3:20:25 PM

Thanks @DavidD66 .

 

Will there be an issue if I continue to file IT-203 Nonresident  to claim NY tax withholdings long-term? (if my employer never wants to update my location)

 

just don’t want to be at risk of being taxed at a state I don’t live anymore and not getting the refund.