Zero New York source income on nonresident New York return causes efiling issue/error

Forum|Forum|2 years ago
February 11, 2024
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My employer incorrectly withheld New York state taxes in 2023. I did not live in New York at any time during 2023 (my employer is not in New York either). I need to file the New York IT-203 nonresident return. I have zero New York source income for line 1, but TurboTax is showing me this message when I try to efile (and I can't find a way to override it): "Allocation worksheet for PY/NR: wage, salaries, etc, col D New York were reported on federal form W-2 but no wage income has been allocated to New York. This will cause the efiled return to be rejected by New York state."

JohnB5677

Please clarify your question.

I just want to understand: On your W-2

Does Box 15 say NY?
Is there a number in box 16 for income?
What is in box 17 for Income Tax?
Is there anything in Boxes 18 - 20?
Are there any other lines with other States?

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jmddd000Author

Yes, W-2 box 15 lists NY and boxes 16-20 are filled. I moved abroad from NY in 2022 (multi-year government assignment, non-military), so for the entire year 2023 I did not live in NY. There are no other states listed since I am living abroad. My employer did not update my withholdings in a timely manner at the beginning of 2023, so there where NY and NYC withholdings for part of the year (which are shown in boxes 17 and 19). The values in boxes 16 and 16 match the value in my W-2 box 1. Since NY does not tax income earned while a nonresident (as long as the income is not NY-sourced, which mine is not), I am filing the NY nonresident form to have the amounts in boxes 17 and 19 refunded. Thank you for your help.

JohnB5677

You should first try to have your employer correct the W-2.

If that doesn't work (As you indicated you would) you can file a New York nonresident tax return and allocate zero income to New York.
However, since your W-2 will show New York income, you can count on getting a letter from the NY Department of Taxation questioning why your tax return shows no New York income.
You'll have to explain you have been and are living abroad, and that you never lived or worked in New York during that year. .
You should attempt to get a document from your employer confirming the error.

If I've misunderstood your question, and this does not completely answer it, please contact us again and provide some additional details.

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lb93

try entering one dollar of "other income" - too low to be taxed but it will hopefully get around the zero error. That's what AARP does in tax slayer.