If your employer is unable to correct your W-2, you can make an entry of zero wages in Pennsylvania (PA), enter the withholding for PA.
PA is considered a reciprocal state with Ohio (OH). This is why the employer is checking into the reasons for the PA withholding. The will work that out, but for you for now.
- PA Nonresident
- OH Resident
W-2 entry for Box 16 & 17: zero PA wages, full PA withholding. Second State: all wages in OH (add another state for OH if you haven't done so). This will provide a full refund of the PA state tax withholding, however you will owe OH for any balance due. There is no cause for concern for this entry because it is the correct action for accurate returns.
Reciprocity:
A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
There is no credit for taxes paid to another state in your situation. Taxes will not be paid to more than one state. At worst you may be asked to send your OH return to PA. Usually, under e-file they don't request it, but they could.
@RickF2
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