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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 12118
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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My HR put my state tax withhold to a wrong state for 2

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My HR put my state tax withhold to a wrong state for 2 years, and they just found out.
JA: Have you talked to a tax professional about this?
Customer: I talked to my accountant. He said I need to pay now to my state, and fill up a form to ask refund from the other state.
JA: Which tax year is the refund for?
Customer: Mistake started from September 2017, it was fixed in the payroll last week.
JA: Anything else you want the Accountant to know before I connect you?
Customer: My accountant said to pay the tax for 2018 now. Wait until end of this year to pay for 2019. And leave 2017 alone until State asks me. Is this a good strategy?

Welcome to Just Answer. My name is Barbara, and I will be happy to assist you.

 

You will want to file nonresident state returns for 2017 and 2018 so you receive refunds from that state.

 

You will want to amend your 2017 and 2018 resident state returns to show correct information.

 

 

Customer: replied 7 days ago.
Thanks Barbara. What do you mean amend? Refile 2017 and 2018 state tax? Or is there some forms for the amendment?

An amendment makes corrections to the original return that was filed.

 

You want to make sure that you reported the taxes paid to the nonresident state on your resident state returns.

Customer: replied 7 days ago.
Does that mean my further questions will not be answered unless I agree to take the phone call?

Offers of phone calls are site generated as a courtesy.

 

We can continue here if you have follow-up questions.

 

Some customers prefer a phone call.

Customer: replied 7 days ago.
My accountant said to pay the tax for 2018 now. Wait until end of this year to pay for 2019. And leave 2017 alone until State asks me. Is this a good strategy?

I do not agree.

 

Your 2017 and 2018 resident returns may have to be amended.

 

Why wait until the state notifies you about taxes owed for 2017? Penalties and interest accrue.

 

 

Customer: replied 7 days ago.
Thanks. There will be penalties and interest for my residential state. However it's not my mistake. Is it possible those fees can be waived? I don't have much hope that my employer will compensate me, though it's their fault.

I would ask your employer to compensate you for any interest and penalties because it was their mistake. If they refuse, you can ask the state to abate the penalties and interest due to your employer's error.

 

Yikes! What a mess!

Barbara and 3 other Tax Specialists are ready to help you
Customer: replied 7 days ago.
Thanks for your help! Have a nice day!

My pleasure.

 

Thank YOU for the 5 star rating. I appreciate it!

 

You enjoy your day as well!