Question

Mistaken withholdings to New York, live in Virginia

Forum|Forum|3 years ago
March 17, 2023
1 reply
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Hi,

My family moved from New York to Virginia in July 2021. In 2021 we were successfully able to allocate the percentage of year between the two states and receive our NY refund and pay our VA taxes. This year we are having a more difficult time.

- My Ohio-based company did not change my address until mid-2022, and New York taxes were withheld until they made the change, when it switched to Virginia. My W-2 has the same amount for wages in the New York and Virginia boxes (my full-year salary for both). My understanding is that all my New York withholdings should be refunded because there is zero relation to New York (my residence or company location). A TurboTax live help agent told me that I need to request a corrected W-2 from my employer - what corrections should I request?

- My wife received a W-2 from a NY-based company that ended her employment at the end of 2021. No Virginia taxes were withheld from this W-2 despite us having lived in Virginia for all of 2022. Does this count as New York Source Income because the company is New York-based, although we live in Virginia?

In TurboTax, I'm told that my New York e-file will be rejected when I allocate our New York wages to 0. I've seen elsewhere that we should file this return by paper with a note. Happy to provide any other details if needed.

TurboTax Self Employed Online

M

MAK70

You cannot request a corrected W2 from your employer because except in rare cases, they are not allowed to make changes to state withholding after the end if the year. You will have to file a nonresident New York return and report zero New York wages. Can you clarify the second question- if your wife's NY employer ended her employment in 2021, why did she get a 2022 W-2 from them? You would have to mail the return if TurboTax will not efile with zero New York wages.

J

jmudAuthor

Thanks for the help! It seems like we won't go through TurboTax then.

Regarding my wife's W-2, we are pretty sure that it's because her employment ended on Dec 31, 2021 (they wouldn't keep her on remote) and then they processed her final paycheck, PTO payout, and a referral bonus once 2022 began. We can follow up with them but think this is the case. Does this count as NY income despite us not living there?

M

MAK70

Yes, in this case it would be New York source income because it was directly related to her New York employment. I guess the good news is you will have NY income so you can efile... @jmud