I am working as a software consultant in IOWA and my employer is in NJ. My employer has given me a w 2 which is for NJ. I have worked in IOWA only in last year. I did not earn any income in NJ. Because my employer is in NJ, my withheld state tax goes is going to NJ. For which state Should I file the return ? For NJ or IOWA or both. I would really appreciate your reply. Thanks... :) :)

You need to file both.

Iowa to pay taxes. NJ to get the taxes that were mistakenly withheld.

Hope your employer has corrected their error.