Get your taxes done using TurboTax

Ok, thank you for letting me know that severance income had employer's resident state taxes withheld.

Then right now you would have to file a non-resident return reporting this income (and taking credit for State taxes withheld).

Then you would file a resident return reporting all the income and taking a credit for taxes paid to then non-resident state (as long as your resident state has state income taxes).

The other option is to: Talk to employer asap and tell them to correct this so only taxes are withheld from the resident state where you reside due to primarily doing work from home. 

View solution in original post