This is for my 2021 W-2. I recently received a tax notification saying I owe tax to IL. My job location was in OK but I worked remotely in IL for entire 2021. My employer reported my income from the company to both states on my W-2. Thus, I was double taxed. When I filed the state taxes, I filed as a residency of IL and put the tax amount to OK as "credit paid to another state" in IL's tax file. But now I was told based on the taxable income for IL on W-2, I cannot take the "credit to another state" and should pay the full amount. I contact my employer to explain that I lived in IL for entire 2021, so my state of residency is IL, and I pay tax to IL. As OK does not use the Convenience of Employer rule, I don’t owe tax to OK. Thus, the taxable income on W-2 for OK should be 0, and I only owe tax for IL. But they refuse to correct the W-2 because they claimed that my work location was OK and it was me chose to work in another state and they tax employees based on their job location on paper. What should I do? Contact IRS?
