I live in Rhode Island (work @ home), but my company is based in NY and takes out NY state taxes. What to do?
Question:
Answer:
Tell them to stop taking out NY taxes, and take out RI taxes instead.
File a non-resident NY return listing your income as $0 and whatever your withholdings are. You'll get a refund of all withheld taxes. You need to file the regular RI return and pay any taxes by the filing deadline.
Your employer needs to register for RI withholdings OR you need to make quarterly estimated tax payments to RI.
At the very least, your company needs to stop withholding NY taxes as you are not a NY resident and do not perform any services in NY.
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