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I moved from Virginia to Florida Dec. 08 when I retired. I gave plenty of notice to my employer of my address change and also submitted to my employer a W4P with my new Florida address. While my annuity shows my correct Florida address, the payroll office (vs. the annuity office) continued to use my Virginia address. As a result, the payroll office imputed the salary and annual leave payout paid to me in arrears in December to my Virginia address and took out Virginia taxes, even though I had already moved to Florida and changed my residency/domicile to Florida. As soon as I received my W2, which had my Virginia address on it, and discovered the mistake, I contacted my employer and asked them to correct the problem. I even offered to reimburse the salary and annual leave paid in December if that would help them fix the mistake and then reissue the payments to the correct address (Florida has no State income tax so the difference is material). But my employer said they can't do that or reissue a correct w2. The employer did provide me with a letter to send the IRS and VA Tax authorities explaining I had filled out the change of address paperwork in time.

But - how do I deal with that when I fill out my tax forms? (I use Turbotax?).

The W2 does show what my employer did. The problem is that what my employer did was wrong. They should have changed my W2 address to Florida and not taken out VA taxes on the salary and annual leave paid in Dec. after I had moved to Florida. So - it doesn't seem I can really get a "corrected" W2 unless they reverse the withholding payments they incorrectly made to Virginia. Any ideas how I can best deal with this on my Fed and Virginia State tax forms?

Thanks.

[ebaines]

You should file your VA taxes in two steps - first as a part-year resident for the period Jan - early Dec, and then a second filing as a non-resident for the remainder of the year. In that second return you should be able to show that as a non-resident you have $0 VA-based income, and hence should get a refund for whatever was incorrectly withheld during that time.

Your Federal tax return is not affected by this.