I was hired and reported to work in the state of Washington. I was a resident of the state of Wa at the time that I was hired and had not lived in Oklahoma for more than 20 years. Wa has no state income tax at all. I worked for a contract house, PDS, which is based in Dallas Tx. They recieved THEIR income from a company in Tulsa Oklahoma for the work that I performed. This is probably where the mistake was made. Their mistake, not mine. I ALWAYS reported in Washington (at a Boeing facility in Everett).
As I understand it, if I file a return with Oklahoma to try to retrieve any of that money, then I will be taxed by the IRS on any money returned as it will be declared as income in the year that it is returned to me. It has ALREADY been taxed as income by the IRS even though it was witheld as state tax money, and so it should not be taxed again. I believe that my previous employer owes that money directly to me, without ANY taxes witheld.
It looks as though my accountant also overlooked the money withheld for state taxes for each of those years. The only taxes that show up in line 5 of the Sch A are local sales tax.
But your MAIN answer would seem to be that I will indeed need to file a return with the state of Oklahoma for those years, but as a non-resident of Okla. I think that this is going to have to be an acceptable answer for this exercise. I'll take it up with the accountant from here as to filing those Okla. returns and probably some ammended Schedule A's. He should have a good idea how to proceed with any tax obligations from here.
Accountant
25+ years tax consulting. Specializing in returns for US citizens living abroad
Not the answer I was hoping for, but quite helpful indeed.
Thanks so much for your time and input.
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