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sepasean · Mar 13, 2008, 02:00 PM

I have worked for a company in NYC for the past 12 years while living in Pennsylvania.

In January 2007, my company switched me finally to our new office in Pennsylvania. Problem is that they never changed my tax withholdings from NY to PA. The issue fell between the cracks, and I never noticed on my pay stub. It only came to light when I received my W2 Form for 2007 from my employer.

Not sure what to do... do I request (and have time) for my employer to correct and issue me a new 2007 W2 Form? If this is not possible, who/what/where do I start with to get this solved so I do not pay double taxes and possibly get penalized as well?

Regards, SepaSean

ebaines · Mar 13, 2008, 02:30 PM

First, make sure your HR department has corrected the problem so this doesn't continue.

The chances of your employer giving you a W-2 showing PA as the state are between slim and none. Remember, they have actually been paying money to NY on your behalf, not PA, so they can't just simply reprint the W-2.

You'll have to fill out a NY non-resident tax form, and you should get a huge refund, since the only NY source income is whatever you earned in NY in January. So you won't be double taxed. Then do your PA taxes. You'll owe them a lot, since there has been no withholding. You may also owe them a penalty for underpayment, but you can probably get around that since in 2006 you had a very low PA tax bill.

The bad news for you is the timing - you will have to pay PA by April 15, but you probably won't get a refund from NY by then, so you'll have to come up with the cash.