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My employer mistakenly withheld NY taxes, filing as a nonresident in Turbotax is not giving me the full refund

Forum|Forum|3 years ago
February 2, 2023
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I live and work in FL, but for a month or two, my employer withheld NY taxes mistakenly. They told me that I needed to file NY state taxes as a nonresident and declare $0 earnings in NY and I would be refunded the withheld amount.

I tried doing this in Turbotax and of the $2000+ that I was withheld, I'm only being refunded ~$1300. Is this because that refund is "taxed" or something?

I also would like to know what's the correct process through Turbotax to rectify those erroneous withholdings since I might not be doing it right.

Thanks!

TurboTax Deluxe Online

Best answer by ThomasM125

You may have New York wages listed on your W-2 form, as evidenced by the abbreviation "NY" in box 15 and an amount on that row in box 16. If so, you will need to get the W-2 corrected as New York will assume the wages were earned there as that is how they are reported. You need to enter the W-2 as it is stated in TurboTax.

New York taxes all of your income earned in and out of their state. Then, they multiply the tax by a factor of your in-state income divided by your total income. If your in-state income was $0, then the factor would also be $0, and you should'nt have ended up owing taxes. If your W-2 form is correct, you have to go back through the New York return and make sure you answered the income allocation questions properly.

T

ThomasM125Answer

You may have New York wages listed on your W-2 form, as evidenced by the abbreviation "NY" in box 15 and an amount on that row in box 16. If so, you will need to get the W-2 corrected as New York will assume the wages were earned there as that is how they are reported. You need to enter the W-2 as it is stated in TurboTax.

New York taxes all of your income earned in and out of their state. Then, they multiply the tax by a factor of your in-state income divided by your total income. If your in-state income was $0, then the factor would also be $0, and you should'nt have ended up owing taxes. If your W-2 form is correct, you have to go back through the New York return and make sure you answered the income allocation questions properly.

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A

alejandro_dAuthor

I do have NY wages in box 16 in my W2, so I guess the W2 is indeed wrong then. I'll reach back to HR.

Thank you!

DaveF1006

You can also report this in your New York State return and not request a W2. To report:

Go to federal>state taxes.
Add New York State
Navigate through the initial screens verifying the fact that you are reporting this return as a New York state non-resident.
You will eventually reach a screen asking if you lived in NYS. Here you will say no.
Then the program will ask the question if you have NY sourced income. You will say yes to this question since it was reported on the W2.
Then there will be a screen that mentions New York income Allocation. You will say no that your wages were not earned in NYS.
Then you will reach a W2 summary page. Here select edit next to the W2.
Next it will ask you how to allocate these wages. indicate you wish to allocate by percentage.
Next put 0 as the percentage amount. This will allow you to claim all your taxes owed to the state of NY. To illustrate this I have included a before and after screenshot illustrating my example. Notice the change in refund amounts.