Thank you @BillM223 for your reply and pointers.
I downloaded the New York product from Turbotax and worked on it. However, in the New York income section (under "Form W-2 Summary"), it doesn't use the Federal wages as you said it should, it prefills in a zero. It does allow me to edit and change that. Should I then manually override the prefilled entry? (Note: I am using a "download" version for both Federal and States, not the online).
Also, Turbotax has a note that says that ".. your days telecommuting during the pandemic are considered days worked in the state .." I also noticed that the statement on bona fide employer office that you had above was under a question regarding COVID-19. I am wondering if that guidance is for people who were working in NY but moved to another state temporarily for the pandemic? In which case the employer would continue to put NY on their W-2's ? In my case, the employer only has MA state wages and withholding.
Turbotax also points to another page in the note . There, it says that "..income derived from New York State sources includes that proportion of his total compensation for services rendered as an employee which the total number of working days employed within New York State bears to the total number of working days employed both within and without New York State. . . .". But I never worked from WITHIN NY.
I also looked for the definition of "New York Source Income" since that is referred to at the top of that link. In the instructions for Form IT-203 it gives a bunch of bullets which qualifies if it is a New York source (see under Nonresidents: New York source income). None of those bullets seem to say that if you lived in another state 100% of the time but were employed by a company headquartered in NY, it is NY source income? But I am no tax expert, so would be great to hear your opinion on it.
It would be great to hear your thoughts/interpretation on the above? Also, it looks like (I need to confirm this), that my net state taxes (to both MA and NY) would be considerably more even with the credit, than if I didn't file an NY return and only filed the MA return. So this decision is kind of important!
Thanks again!
