Employer deducted state tax for incorrect state?

Question

Hi,
I moved from one state to another state in March. However my employer did not make a change of address and deducted state tax as per first state. As second state does not have any state tax, is there a way I can get the money refunded for this tax which was calculated for wrong state?

Will appreciate your response.

Thanks

Answer 1

Yes. File a part-year tax return for the state in which you lived until March. Report the income you made until your move and then enter the amount of tax withheld for the state. Since you only worked there for 3 months, but had taxes withheld for 12 months, you should get a sizeable refund. Happens all the time. (I have lots of clients you move from one state to another in mid-year).

Answer 2

First of all, you want to file a part year resident return, not two separate returns.

If you work in the state you live in and changed work locations when you moved, then you report the income from the first three months of the year as taxable in that state and all of your withholding for that state. You will get a refund for the amount overwithheld.

If you still work in the old state, all of your income from that job is taxable in that state.

Answer 3

Did you change work places as well? Or are you working in the state that you used to live in?

You need to file taxes in the state you work in as a non-resident and the state you live in.

If you moved to new state and stayed working in the old state, then you have to file a return as both a resident and non- resident.

If this sounds too much for you, you should consult a tax professional that has experience with your states.

Answer 4

You'll be filing a return for the first state anyway, for the time you lived there - you should be able to get the extra refunded when you file.