Need Help: Company changed my work location to a high-tax state in 2022 without telling me - major tax implications!

This is actually a pretty common issue with remote workers, especially since the pandemic when companies started having employees spread across different states. Let me walk you through what normally happens in these situations. First, you were absolutely right to contact payroll. They need to correct your work location and tax status immediately going forward. For the past years, they should issue corrected W-2s (called W-2c forms) showing your correct state of residence and filing status. This will allow you to file or amend your state tax returns properly. Since Tennessee doesn't have state income tax on wages, you'll likely be due a refund from New York for any state taxes withheld. However, you'll need to file non-resident tax returns for New York to get that money back. The process varies by state, but generally you'll file as a non-resident who earned $0 income in New York. One thing to watch for - make sure they don't just correct going forward but actually fix the past years too. Some companies try to avoid the paperwork of issuing W-2c forms.

I went through something similar and was pulling my hair out until I found this service called taxr.ai (https://taxr.ai) that analyzes your tax documents and payroll records to help resolve these kinds of state tax withholding issues. My company had me listed in California for 2 years when I was living and working in Texas! The site helped me understand exactly what forms I needed, what my rights were, and the specific language to use with my HR department. They have this document analyzer that catches these kinds of discrepancies and explains exactly what needs to be fixed. It was a huge relief having someone walk me through the process instead of trying to figure it all out myself.

Just wanted to update that I actually tried taxr.ai after seeing the recommendation here. My situation was similar - Pennsylvania taxes being withheld when I work remotely from Florida. The document analysis feature caught all the discrepancies right away and gave me exactly what I needed to approach my company's payroll department. The best part was that it generated a customized letter citing the specific tax regulations that applied to my situation, which made my HR department take the issue seriously immediately. They're now issuing corrected W-2s for the past two years. Would have taken me forever to research all of this on my own!

When my company did something similar (but with California taxes), I spent WEEKS trying to get through to the state tax department for guidance. After being on hold for hours multiple times, I finally used Claimyr (https://claimyr.com) to get through to a real person at the tax agency. There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c It basically holds your place in the phone queue and calls you when a real human picks up. Saved me from the hold-time hell. The state tax representative was actually super helpful once I got through and explained exactly what forms I needed to file to get my money back. For state tax issues like this, sometimes talking to the actual state tax agency gives you the most definitive answers.

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to reach my state tax department about a similar withholding issue. I had already wasted two entire afternoons on hold just to get disconnected. It actually worked exactly as described. I entered my number, and about 45 minutes later (while I was at the grocery store), I got a call connecting me directly to a tax representative. Didn't have to wait on hold at all. The rep helped me understand exactly how to handle my incorrect state withholding and what forms I needed to request from my employer. Completely worth it just for the time saved and stress avoided.

Don't forget that you might be able to claim a state tax credit on your federal return for the taxes paid to the wrong state. Look into Form 1116 (Foreign Tax Credit) which can sometimes be used for taxes incorrectly paid to another state. Talk to a tax professional about this though - it's a bit complicated and depends on your specific situation.

Anyone know if this affects social security and medicare withholding too? Or is that the same regardless of which state you're in?

This is a frustrating situation but definitely fixable! I went through something similar when my company incorrectly classified me as a California resident while I was actually living in Nevada. A few key things to prioritize: 1. **Document everything** - Save all your pay stubs showing the NY withholding, any emails with payroll, and proof of your Tennessee residency (lease, utility bills, etc.) 2. **Push for W-2c forms** - Don't let payroll just fix it going forward. You need corrected W-2c forms for 2022 and 2023 to properly file amended returns and get your money back. 3. **File non-resident returns** - You'll need to file NY non-resident returns showing $0 NY income to get refunds of the withheld taxes. Since Tennessee has no state income tax on wages, you should get back everything that was withheld. 4. **Check your federal filing status** - The fact that they also changed you from Married to Single could have affected your federal taxes too. Make sure that gets corrected on your W-2c forms. The good news is Tennessee's lack of state income tax makes this cleaner than it could be. You're not dealing with reciprocity agreements or partial credits between states. Just document everything and be persistent with payroll - they created this mess and need to fix it properly.