Yes, I am filing a return in MD as well as PA but there's still a discrepancy somewhere. Are you saying that for MD I would list my taxable income there as $0 instead of what's listed on my W-2 for the MD line?
Without using real numbers here is my situation:
W-2 lists:
PA Wages, PA withheld Tax
MD Wages, MD withheld Tax
MD Return uses MD Wages and applies MD withheld tax, so the return is about what I would expect with nothing owed and nothing due for return.
PA Return uses PA Wages + MD Wages but only applies PA withheld tax. So for this one, it's counting the income I made in MD, but not the taxes I paid on that income because it went to MD and not PA.
So, the MD Wages are being used in both MD and PA, but the MD tax withheld is only used in MD. I figure I have three options:
1.
For PA return: PA Wages + MD Wages, apply PA withheld tax + MD withheld tax
For MD return: $0 wages, no withheld tax
2.
For PA return: PA Wages, apply PA withheld tax
For MD return: MD Wages, apply MD withheld tax
3.
For PA return: PA Wages + MD Wages, apply PA withheld tax
For MD return: $0 wages, MD withheld tax
