@LenaH
I'm doing everything you suggested, and I am positive everyone who reported the issue in this thread has done so as well.
I prepared my non-resident Rhode island tax return first and then started with filling MA tax return, but TurboTax MA always double-counts my income. Say, you earn an income of 100,000k in Rhode Island, and you pay $5,000 state tax to Rhode Island. In MA return, Turbo Tax would count the income as $200,000K, the tax rate is 5%, so the MA tax before credit is $10,000. Yes, MA will give you some credit back for the $5,000 tax paid to Rhode Island, but you still end up having to pay MA $10,000 - $5,000 (credit for RI tax) = $5,000, which is totally wrong!
FYI, I received only one W2. In box-16, there are two rows: one for Rhode Island where the income is actually earned, and another for Massachusetts for the same amount of income. In box-17, there are also two rows: one for Rhode Island showing state tax withheld, the other row for Massachusetts with much smaller amount.
When I prepare Massachusetts return, it added up the amounts of both rows in W2 box-16, which doubled what I actually earned. Turbo Tax gave the option of only importing MA return, but then one has to mail in the return. Some other posts reported similar issues. If one modifies the row for Massachusetts in box-16 to 0, he can E-file, but someone has been audited by Massachusetts Department of Revenue for doing so in the past.
My employer said the W-2 was correct and I need to check with TurboTax or find another accountant to properly file the return.
