W2 has 2 states

[KKM2005]

Hi 

My son lives and works in Rhode Island. His employer has 2 locations.....Rhode Island and Connecticut and their employer address is in CT.  He has only worked in the RI branch. On his W2 it shows wages earned in both states with the State income tax in CT being less than the RI tax. Does he need to file a state return for both states?

[TomD8 · Accepted solution]

His employer was incorrect in withholding CT taxes.  He owes no taxes to CT since he is is a CT non-resident who never physically worked in CT.   However, in order to receive a refund of the incorrectly withheld CT taxes, he must file a non-resident CT tax return on which he shows the withholdings but allocates zero income to CT.

RI won't give him a credit for the withheld CT taxes because in actuality he owes no tax to CT.

ALL of his income is of course taxable by his home state of RI.