Here are your questions and the answers for you. The Maryland (MD) return is not required unless you had income from their sources that is not wages.
My questions are - Is my Maryland employer correct in how they list my wages twice in box 16, one from Maryland and again the same amount in PA?
- The employer may think they are correct, however it doesn't seem logical to enter local withholding in the state tax withholding box is definitely incorrect. They can list two states for wages, however with the reciprocal agreement and your form completed it is not likely required. It would have no affect on your tax return when completely correctly as you are well aware by your notes.
- On your W-2 entry use only one state wage and tax for Pennsylvania (PA), do not enter any state wages for Maryland (MD). Also, do not enter the MD county tax as state tax withholding. You can enter it in the local tax box if you choose and if you are itemizing deductions.
- And is it correct that Maryland county tax is listed in the Maryland state tax box 17? No, absolutely not. The payroll clerk will figure it out eventually, however you can enter your tax return to keep it accurate.
The IRS does not keep or track the state information on the W-2. If you wanted a transcript of a W-2 from the IRS later there will be no state information on it.
@osirhc
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