@Ijgreen
I was focusing on the withholding because that's what you talked about in your question. You don't want the state to ignore the amount withheld on the W-2, because that's the amount of Georgia tax that was actually taken out of your pay. You want to get credit for all of it, even if it's more than it should have been. On your tax return, just enter the state tax withheld as shown in box 17 of your W-2.
@DoninGA , any idea how to handle this on the Georgia nonresident return? If I understand correctly, Ijgreen is saying that the Georgia wages in box 16 on his W-2 will be higher than they should be because the employer counts non-workdays as days worked in Georgia. Is there any way that he can adjust the amount of Georgia income on his Georgia nonresident tax return?
@Ijgreen , you didn't say what state you live in. This might turn out to be a minor issue if the state you live in also has state income tax. The higher amount of Georgia income means that the income from your resident state is lower, which will reduce your resident state tax. So the effect is only the difference in the tax rates between the two states. It could even work to your advantage if the tax rate in your home state is higher than the Georgia rate.
