Remote worker in NY w/ accidental withholding in GA

[chiefy]

This is kind of complicated, so TIA for any advice:

I work for a company in IRELAND, who hired me f/t last year. They use TriNet for HR/payroll etc. I didn't notice it until I started my taxes this weekend but I have witholding on my W-2 from New York (where I am a f/t resident) and Georgia (where I haven't been in a long time). Apparently the Irish company has a LLP in Georgia so TriNet set my work location as Georgia.

So as I understand it, I should be able to get my Georgia witholdings back, but is it comparable to just file on the W-2 income in Georgia and get a credit for my NYS taxes?

Thanks!

 

[davew9128]

NY would object to that because you are not legally obligated to pay tax to GA.

 

[Taxing Matters]

So as I understand it, I should be able to get my Georgia witholdings back, but is it comparable to just file on the W-2 income in Georgia and get a credit for my NYS taxes?

Just file a return in Georgia showing no Georgia income and showing the tax withheld on the W-2. I'd attach a brief statement that you did not do any work for the employer in Georgia and the employer improperly withheld tax. It's not difficult to do and is the right way to fix the problem. That will get you all the Georgia withholding back.

Filing a return in Georgia, showing the income, computing the tax on it, but then taking a credit for NY state tax paid will not work. You can only claim on your Georgia tax return a credit for taxes paid to another state if you are a resident of that state. Since you are not a resident of that state you cannot claim the credit. So if you put down income on the Georgia return, you'll pay tax on that and won't get all the withholdings back.

And you cannot file the Georgia return and pay the tax in Georgia and then claim a credit for that Georgia tax paid on your NY return. In order to claim that credit, the tax you pay must be a tax you are obligated to pay. You have no obligation to pay Georgia tax given the facts you provided. So NY would not allow that credit once it finds out you're not subject to tax in Georgia. I assume this is the situation davew9128 meant when he said that NY would object to it.

 

[chiefy]

thanks for the advice - yes, I am going to have to file in GA showing no income etc.