Been paying NYC City Tax by mistake (taxes, live, liable)

[zzebie]

Hi All,

While filing for taxes, we just realized that my wife has been paying NYC resident tax since March last year. I think she selected NYC resident by mistake in the NY State tax form, while updating her exemptions last year. She got a raise in the same month, so she never caught this earlier.

Can anyone tell us what are the next steps to take?Should we finish filing our taxes in the normal fashion, and take this up as a separate action item. Or should we take this up as a part of filing our 2011 taxes?

Thanks in advance

-ZZ

[md21722]

I would handle it now as your prepare your taxes for 2011. As I understand it, your wife does not live or work in NYC, but does work in NYS so she is only liable for NYS tax, and that she has incorrectly had NYC tax withheld. When you compute your taxes, you should be getting a full refund on any withholding for NYC. Change your exemption form so that she is no longer withholding in 2012, and when you file your 2012 taxes in 2013, also claim a full refund for NYC withholding.

[zzebie]

Originally Posted by md21722

I would handle it now as your prepare your taxes for 2011. As I understand it, your wife does not live or work in NYC, but does work in NYS so she is only liable for NYS tax, and that she has incorrectly had NYC tax withheld. When you compute your taxes, you should be getting a full refund on any withholding for NYC. Change your exemption form so that she is no longer withholding in 2012, and when you file your 2012 taxes in 2013, also claim a full refund for NYC withholding.

Thanks for the response.