Work for NYC company but moved out of state. Withholding paperwork question. (pay, taxes)

[Cat119]

Hi there, my husband still works for the same company he did when we lived in NYC. We have been living in AZ for a year now and have finally submitted paperwork so we can be exempt from paying income tax to NYS and NYC. The first pay period was fine, we paid to Arizona and none to NYC. But the next pay period we were refunded the Arizona tax we previously paid and were then charges NY taxes again and then just the NY taxes again for the third pay period. I have no idea why this is happening when it seems that the paperwork was submitted and accepted. We meet all the criteria for exemption:

1: WE DO NOT LIVE THERE.
2: We DO NOT perfrom any work within the state at anytime; no traveling to work there.
3: We DO NOT benefit from any of the state or city's public services.

Can anyone give me an answer as to why this has happened? Why the paperwork would be accepted then rejected without any notice or reason?

[Pitt Chick]

Originally Posted by Cat119

Why the paperwork would be accepted then rejected without any notice or reason?

Who is this paperwork with?
What did THEY say when you called and asked?

[Cat119]

We submitted the paperwork to his company's second in command (IDK his actual title) and he submitted it to the payroll company. But it's Sunday and we only noticed the issue yesterday after his check went through. My husband will talk with him tomorrow to see if there is anything to be done. I asked here to see if anyone here has seen or experienced anything like this and could possibly shed some light on the subject.

[jayrandom]

Originally Posted by Cat119

Hi there, my husband still works for the same company he did when we lived in NYC. We have been living in AZ for a year now and have finally submitted paperwork so we can be exempt from paying income tax to NYS and NYC. The first pay period was fine, we paid to Arizona and none to NYC. But the next pay period we were refunded the Arizona tax we previously paid and were then charges NY taxes again and then just the NY taxes again for the third pay period. I have no idea why this is happening when it seems that the paperwork was submitted and accepted. We meet all the criteria for exemption:

1: WE DO NOT LIVE THERE.
2: We DO NOT perfrom any work within the state at anytime; no traveling to work there.
3: We DO NOT benefit from any of the state or city's public services.

Can anyone give me an answer as to why this has happened? Why the paperwork would be accepted then rejected without any notice or reason?

Just give all your money to New York State. It doesn't matter if you live in New York, work in New York, work in a company based in New York, can see New York from your house, can drive to New York from your town, or just watch a show broadcast from New York on your TV. All of those things cause all of your income to be considered as coming from New York and thus you owe them taxes on all of it. If by some chance you don't have a TV, just remember that the signals are still being broadcast through your house, effectively making it part of New York, as well.

I'm only being partially facetious. It's possible that New York still considers your husband as working in New York and telecommuting from Arizona, which is causing the problem. I think New York continually stretches the bounds of the Constitution in what it considers taxable income. Talk to a competent tax professional if you can't get this sorted quickly.

[nybbler]

It's probably very simple: someone screwed up. A lot of financial systems are set up so there's one system considered authoritative and other systems receive a dump of data from it now and then. If you change something in the downstream system, it might hold for a while (a day or a week or a pay period) but when it's updated from the authoritative system, everything will revert.