Wrong state (NY) for W2

[marksgotissues]

My wife and I are full-time residents of Indiana. I changed jobs last year and my new company is located in NY. I am in Sales and work remotely from my home/office (IN). Upon doing my 2021 taxes, I realized the State Code for my new company was listed as NY (Not IN). Since I waited to the last minute, my company could not send me a corrected W2 in time for my filing. I ended up filing my Federal and State (IN) taxes which included a several thousand dollar check for my income in which NY taxes were withheld and paid to NY instead of IN. This return was mailed on 04/18/2022.

Next, I went ahead and downloaded the NY state version of Turbotax and added it to the existing return (already in TurboTax, which included my Federal and State IN return) so the Federal Return Data would import (which it did). As it stands, the NY Return seems to be reflecting the proper amount that was paid to NY by mistake. The return includes forms IT203, IT203C, and IT-2. Since I did not e-file my Federal return, Turbotax will not let me file my NY State return so my plan is to mail it. Can someone tell me if this all sounds correct and if I'm over-simplifying or missing something? Thanks!

[SundayInSalem · Accepted solution]

New York follows the convenience of the employer rule, meaning an employee working remotely can be taxed by NY if they are not working in Indiana due to some business necessity, such as to be near clients.

You can claim a credit on your Indiana return for tax paid to NY. If you did not claim a credit, you can amend your Indiana return. 

See I need to amend my state return

If your employer withheld NY tax and you never set foot in a NY office, you can instead file for a refund of all tax. You will likely get audited, in which case you can cite several court cases in your defence.

Read the discussion by @kristinelbly in I work for a NY company, remotely from NC. I spent 1 day in 2017 on site, but my W-2 has full salary...