@jkaug
Ahhh, so they are already disagreeing with you assigning that income to SC and not to NC, as noted on your original W-2......
In this situation, I suspect that you would have to retain a tax attorney to fight it (if you want to assign the $$ to SC)...and also get your employer to agree to issue a W-2C reassigning the income for 2021 in the state lines on that W-2 to the proper state.
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I would guess, that yielding to NC on this would not necessarily be out-of-bounds....but no one here can give you direct legal advice, since actual tax attorneys are the only ones who could run thru the proper legal ramifications of what you decide to do. Nor can we know whether SC would take an opposing view from NC's....and create a further mess.
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Again, if you were telecommuting again at the start of 2022 for more than a few days, a serious discussion with your payroll department would be in order to get your 2022 W-2 pay properly assigned to the correct state based on the % of time you worked from home in SC.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
