Out of state employer reported wages to wrong state!?

Question

I live in GA, but _used_ to live in AL. When I moved from AL to GA in Jan of '06, an out-of-state employer failed to update my address properly (I did notify them) and reported all my '06 earnings to my old address in AL. Now they tell me, whoops, but too bad, just file an AL state return. Is this right? Do I have to file an AL return, even though at no point in '06 when I earned the money did I live in AL?

Answer 1

Whether or not you lived in Alabama, you've had State and maybe county tax withheld from that state. You'll need to file a non resident return and either get back a refund or owe. Your only other option would be to insisted that your employer correct this and send you a corrected W-2. They aren't wanting to do this, that's why they are telling you just to file an Alabama return.

Answer 2

The old address on the W-2 doesn't effect your tax returns. What matters is the state that appears in Box 15 of the W-2.

If Box 15 shows AL income, then you have income attributed to AL. You would file that income on a nonresident AL return. You will also file a resident GA return and get credit on the GA return for taxes paid to AL.

Answer 3

The employer should issue you a corrected W-2 and request a refund from the state of AL and pay in to your GA account, but it doesn't look like that is goint to happen so you can file a non-resident AL return to get your money back.

I am curious if your paycheck stubs reflected AL wages all year or- after you notified the employer- if GA was listed as your 'home state'.
Good Luck

Answer 4

Yes, you'll have to file an AL non-resident return listing your income as $0 and whatever the AL withholdings were. You'll get a full refund as long as you had no income earned in AL and did not live in AL.