Friday, November 19, 2010

My Employer botched my change of address so my tax withholding went to the wrong state can I fix this?

I changed addresses to a different state in Mid-June and my HR dept. failed to file the new W-4 I filled out, so they continued to withhold taxes to my prior state of residence. How do I get the 2nd half of my years taxes from the old state to the one I live in now so I can file corrected state returns?



Already the prior state wants income tax paid on the entire year's earnings in addition to what was withheld (the new W4 HR didn't file also changed my marital status), and it's over a thousand in penalties! Obviously the new state IS owed taxes on my income from Mid-June but I'm not paying both. So:



1)With the change of address being so close to mid-year, should I divide the amount in half?



2) How do I get the money back from the old state and get it to the new state?



3) Would H%26amp;R Block be able to help as I can't afford a Tax Attorney but I need to fix this legally.



Thanks SO MUCh for any advice!My Employer botched my change of address so my tax withholding went to the wrong state can I fix this?
It's not a tax problem, but an HR problem.



Your employer is responsible for reissuing a corrected W2. And for paying taxes to the proper authority.



Technically, the employer does not FILE a W4, but only uses that information to withhold the proper taxes and remit them to the proper state jurisdiction.



Not sure how the prior state can want anything or assess penalties yet since tax returns aren't due until April.



Talk to your HR department and threaten legal action if they do not correct the problem. You can also contact the appropriate government authority (EDD in California) who oversees payroll taxes, to report your employer.

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