I moved from MA to CO (and became a CO resident) on July 1, 2024. However, my state of residence wasn't updated in Workday and ADP until October, so my July-September earnings were incorrectly taxed MA taxes, when they should have been subject to CO taxes. I asked my employer to issue me a corrected W-2 (W-2c) statement, but I was told it's not possible since earnings and taxes withheld are determined and reported by my state of residence in Workday. They won't retroactively update my earnings and taxes withheld for July-September.
I know I should file a MA Part-Year Resident tax return for January 1, 2024 - June 30, 2024 and a CO Part-Year Resident tax return for July 1, 2024-December 31, 2024. Then, based on what I've read online, such as https://ttlc.intuit.com/turbotax-support/en-us/help-article/printers-printing/file-nonresi[product k... and https://ttlc.intuit.com/community/after-you-file/discussion/my-employer-paid-income-tax-to-a-state-i..., I should also file a MA Non-Resident tax return (first) for July 1, 2024 - September 30, 2024 to receive a refund for the taxes that were incorrectly withheld by MA, when I was in fact a CO resident. The instructions state, "If preparing a nonresident return solely to recover erroneous tax withholdings, enter 0 on the screen that asks for the amount of income earned in that state. This will eliminate your tax liability for that state, resulting in a full refund."
Can someone please clarify, "enter 0 on the screen that asks for the amount of income earned in that state."? Does this mean I should specify $0 of earnings for the non-resident state (MA) for July 1, 2024 - September 30, 2024? On this page in the "Complete Schedule R/NR" section (see screenshot), I tried entering $0 for all rows in the "Massachusetts Income While Nonresident" column, but I was later told that the Schedule R/NR isn't necessary since I'm reporting $0 nonresident income, and my only option to proceed is to remove the Schedule R/NR. After removing the Schedule R/NR and getting to the Summary page, my total income indicated as being taxable by MA was way too high.
Also, there's a page in my MA tax return, titled, "Pay Tax to Another State?", which asks if I paid tax to MA and another state. Should I answer yes to this since I will have paid tax to CO for July-September too once I submit a CO Part-Year State Tax Return, or should I answer no since I wasn't double-taxed at the time (when my earnings were taxed MA taxes, but should have been taxed CO taxes)?
