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I'm not sure what you mean by "legally require" you to pay state income taxes?
MA position is that your non-qualified "pension" is "effectively connected" with your employment in MA and therefore is taxable in MA:
Massachusetts Source Income, Massachusetts gross income derived from or effectively connected with (1) any trade or business, including any employment, carried on by a non-resident in Massachusetts, whether or not the non-resident is actively engaged in a trade or business or employment in Massachusetts in the year in which the income is received;
It's interesting that you were first given a 1099 and now the reporting is on a W-2, which is the same reporting that was used when you were actually working in MA.
As far as "legally require" goes it is simply the law and as with most things one either complies with the law or not. MA will receive their copy of the W-2 and if there is no corresponding reporting of that income, they will begin the process of assessing & collecting the related income tax. As long as you don't have any assets in MA it will be difficult for them to collect the tax, but eventually they would garnish your "pension" payments and file a general lien against any assets you do have in MA and that will show up on your Credit Report.
Of course there would then be penalties & interest involved and the tax assessment would be based upon the gross amount of income you receive without any deductions or exemptions that you may be entitled to. In other words a mess to straighten out.
When you say you paid $13,000. to Medicare, I presume that you meant to say "Social Security" because until you reached your full retirement age your "earnings" would have been limited & if you exceeded that limitation your Social Security benefits would have been reduced or even eliminated with the reduction increasing your benefit at your full retirement age. At age 62 there would have been no reason to pay anything to Medicare.
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