Hello,

I live and work in NY for a company based out in California (they have an office in NYC).
They reported my taxes to the California state (on my W-2). I understand I have to file my taxes for the NY state but would I need to do it also for California as a non-resident?

Thank you for your answer.

Jack

If you live and work in NY then you owe NY income taxes, and you do not owe CA any income taxes at all. Now, if your company withheld taxes only for CA, you have a bit of a problem. When you do your NY tax return you will find that you owe them quite a bit of money, since nothing was ever withheld for them. The good news is that you should get all your money back from CA, but you will have to file a non-resident return with them, and it will probably take several weeks to get your refund. So you will have to come up with the cash for your NY taxes on your own in order to get it in by April 15 - there's no way to get CA t reimburse NY directly.

Be sure to get with your payroll department to fix this, so they withhold money from your paycheck for NY, not CA. If they don't get this straightened out you could be liable in 2008 for an underpayment penalty to NY.