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Level 2
posted Apr 7, 2022 5:00:36 PM

W2 form - Incorrect State

Hello,

 

I’ve incorrect state on W2 form and requested a W2c form but it will not come before the deadline.

Due to the incorrect state on W2, it implies that I owe taxes ~ 6000$ to NY state which is not correct as I moved from NY in 2020.

I consulted a tax expert and he said I should file for an extension and pay ~ 6000$ to NY state first and then request a full refund later with the corrected W2C.

 

Any suggestions? Please help.

 

Thanks.

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1 Replies
Expert Alumni
Apr 7, 2022 7:40:36 PM

If you are going to get a W2C with the correct state, then I would file the extension for your state of residence.   You do not have to file an extension with NY because you are not required to file in NY.  

 

Do not pay anything to the state of NY as you were previously advised.   If you did not work or reside in the state of NY you do not owe any taxes to NY.

 

Once you have the W2C, hopefully, you will only have to file one state.  However, if the W2C does not show any withholdings and the original W2C showed withholdings then you will need to file the NY state return to get the refund of your withholdings.   You would file as a non-resident and did not work in NY.   This will get you the full amount of the withholdings back.

 

If the W2C does not show any withholdings for your state of residence, you will owe on resident return but will get all of your withholding back from NY.    If the amount of withholding is showing on the W2C to your state of residence, you do not have to file the NY return.   

 

To make it clear, if you did not work or reside in the State of NY you do not owe any taxes to the State of NY. 

 

I know this is confusing but to sum it up:

  • Do not file or pay anything to the state of NY.  If you did not work or reside in NY you do not owe or have a filing requirement.
  • File an extension for your state of residence.  If you owed taxes on your 2020 return to your state of residence, I would pay that amount to be safe and avoid penalties.
  • Once you receive the W2C, what do boxes 15 through 17 show?   What state is listed in Box 15?   What amount is in Box 16 and Box 17?   If Box 15 is your state of residence and Box 17 has the amount of withholdings shown on the original return, no NY return is required.   Just file your state of residence.