Live in NJ work in NY W2 filed wrong
In 2003 my payroll company made a mistake and withheld taxes for NJ, not NY. When I filed my state taxes I filed them as if the W2 was correct. Paying balances to both states with my returns.
Last year NY sent me a bill for the W2 withholdings sent to NJ. I called NJ and they sent the W2 withholdings back to me (without asking me for paper back-up, I couldn't believe it). And I paid this amount (plus interest) to NY.
A few months later NJ is asking for the money back, with interest and penalties. I called them they asked for a copy of the 2 checks to prove I paid NY the tax. They have since sent this to a collection agency and they are DEMANDING the $$$$$$$$
I am going to ask my payroll department to issues a W-2C.
Will there be an issue with the W-2C, since NJ has already sent me the money?
Any other suggestions?