Yeah, before I filed my taxes I asked the NJ Tax Dept regarding whether NJ taxes out of state telecommuters, even if they never physically worked there. They responded no and to file a NR return to claim any and all taxes withheld to NJ. So I did just that and filed CA return and paid taxes there, as well as a NJ non resident return, claiming a full refund. The problem in my situation is this letter that NJ is requiring my employer to write, basically stating that I never physically worked in NJ - which they refuse to write. I guess, it looks like my only option is to file amended returns for both CA and NJ. Hopefully, this won't cause CA to now hound me for taxes.