Two states on W2 even though I only lived in MA

It depends. Were you working remotely for a New York company? New York taxes nonresidents who work out of state for their own convenience if they as "based" out of the NY office.

If that's your situation, you would pay NY tax. If not, you can file for a refund.

Either way, you'll have to file a nonresident NY tax return.

NY requires employers to report total wages in Box 16, even non-NY income. You'll make the adjustment in the New York section.

• Go to the New York in TurboTax Online.
• Continue until you come to New York Income Allocation.
• Say No to Were all of your wages and/or self-employment income earned in New York State?
• Edit Your W-2 on Your Form W-2 Summary
• Choose Allocate by Number or Days or Allocate by Percentage on Allocate Wages to New York (percentage is usually the easier calculation)

As a result of the pandemic and remote work, states have been adjusting their legislation to make sure they don't lose any tax revenue.

This area is somewhat murky in many states, and will continue to be murky for the next several years.  There is a tax case that will eventually make its way to the Supreme Court, but that is years away.

What is not clear with your particular case is whether you work remote or commute to NY or a combination.

While this may at some point make a difference, NY's current position is that the income should be taxed in NY.  Employers may not always get this right; including payroll companies.

So you should file a nonresident NY return, determine the tax, and then when you complete your MA return you will take a credit for taxes paid in other states for your NY tax liability.  This alleviates the double tax impact; not always $ for $, but minimizes the impact.