My W-2 shows that my state tax withholdings were withheld in the wrong state. What should I do to set things straight?

 My W-2 shows that my state tax withholdings were withheld in the wrong state. What should I do to set things straight?

One way to handle this would be to simply file state tax returns for both the state where you owe taxes and the state where withholdings where mistakenly withheld. You would receive a tax refund from one state, and you would owe the full amount of your annual taxes to the other state.