Lived in MD, worked in DC. Received multiple W-2s. One has withholding for MD and one has TOTALSTATE in Box 15.

[Lisa3737]

I am helping my son with his taxes. He lived in Maryland, but worked in Washington DC. I know they have a reciprocal agreement, so he should only have to pay taxes in Maryland. He received two copies of his W-2.
One has TOTALSTATE written in Box 15 and a value in Box 17.
The second has Maryland in Box 15 and has a value in Box 17 that is smaller (a little over half) of the value in the copy with TOTALSTATE. 

Does this mean that his employer withheld both DC and Maryland taxes? He did not get a copy that has DC listed in Box 15.

Does he file his Maryland taxes using the copy that has Maryland in Box 15. And then should he file DC taxes to get a refund?

[KeshaH]

If the amount in box 17 of the MD W-2 doesn't match the other copy of the W-2 it would appear there's additional withholding not being reported. I'd suggest having your son check his W-2 to verify the state tax withholding.

All of his income would be taxable to Maryland, not just the amount shown on the MD W-2. If he paid taxes to DC, he would need to request a refund.

[Lisa3737]

I don't fully understand your reply. We understand he needs to pay Maryland and Federal taxes on his income listed on the W-2. The taxes shown to be withheld in Box 17 on the copy that lists Maryland in Box 15 more than covers what he would owe in Maryland taxes.

The amount shown withheld in Box 17 on the copy that lists TOTALSTATE in Box 15 is almost twice that amount. But he doesn't have a copy that indicates taxes were withheld for DC. We're just assuming that must be the case since due to the TOTALSTATE listed on the one copy.

We weren't expecting this to be an issue since Maryland and DC have the reciprocal agreement.

[KeshaH]

Before you file a DC return to request a refund, you should confirm that there was actually tax withheld for DC. You would need to compare the total state tax withholding on the W-2 with the state tax withholding on his last paystub for 2024. You can also check with his employer to inquire why the TOTALSTATE copy of the W-2 is showing a discrepancy in the tax withholding.