What happens if you pay taxes in the wrong state?
Sarah Duran
Published Feb 27, 2026
If you were not a resident in the state you paid taxes to, file a Non-Resident State Return to have them refunded to you. When you file your Resident State Return, you report all your income and also taxes you paid to another state (which you get credit for).
What if your W-2 has the wrong state?
If an employee was taxed in the wrong state, a correction to the W-2 should not be requested. Employees should file a tax return to the state agency for which the taxes were collected and request a refund and file a tax return to the state for which they should have had tax withheld in order to pay any liability due.
What to do if you get tax withheld in wrong state?
Income tax withheld in wrong state Make sure that you had them change your tax withholding for 2020 or you will have the same issue next year. For 2019, you will have to file a New Jersey nonresident return and report no NJ income to get the withholding refunded.
Why does my employer pay taxes to the wrong state?
Typos occur and your employer may have paid taxes to the correct state, but the W-2 data entered displays the wrong state information. If the W-2 is correctly reflecting the state your employer paid, then revisit the W-2 entry section in TurboTax.
How can I correct my state tax return?
If the W-2 is correctly reflecting the state your employer paid, then revisit the W-2 entry section in TurboTax. Make sure you enter the state information exactly how it appears on your W-2. Then follow the steps in the TurboTax FAQ below to complete the nonresident state tax return. Click “See entire answer” for the full page view.
How to check the correct state on your W-2?
First, check with your employer to confirm the incorrect state entry on the state portion of your W-2. Typos occur and your employer may have paid taxes to the correct state, but the W-2 data entered displays the wrong state information.