@yk6 , you are correct in your position that for 2020 you may not be a resident for tax purposes. And this would imply that your employer would have to withdraw the FICA taxes ( 7.65% contribution by you and another 7.65% by the employer ) from IRS -- refund to you and correct its books. And you will file a 1040-NR, not supported by TurboTax. Also it would mean that your employer has made an error in counting you as an employee during the "abroad" period of 2020. Also the question may arise as to whether the employer was justified in asking for a H-1B visa because if the work can be performed remotely , then why an H-1B -- this is only my view without any actual data.
Note that your employer by his actions has treated you as an employee , that it had intention to continue employing you in the USA and once the temporary travel restrictions were lifted brought you back and continues to employ you here in the USA ( not remotely). Also you ( I suppose ) went back to India for a short trip and had all the intentions of coming back and continuing with your H-1B employment. Therefore , my suggestion would be that let the sleeping dog sleep --- see if your employer is willing to issue you a corrected W-2 for the portion you were present and you then use self-employment ( foreign location ) for the rest of the year and recoup the Indian taxes to the extent allowable. Else just file as normal ( with the current W-2), pay the Indian taxes for the portion earned in India and ignore trying to ameliorate the Indian tax bite by claiming foreign tax credit
It really is a question whether you were temporarily absent ( more than the 10 float days usually allowed ) or really had left the USA and have re-entered. Perhaps you should consult with your employer tax people / HR and see what they suggest. It goes beyond just a tax or form issue. There are implications into the work visa, I suspect.
Is there more I can do for you ? If you wish to go more into these "personal" situation, perhaps ,and if need be, you can PM
pk
