PA resident but Employer mistakenly report partial wages to MD

[ndy856]

I understand there is a reciprocity agreement, but my W2 has 2 lines each for MD and PA. For MD, there was no State income withheld so box 17 is blank.

I tried to call MD tax help with they were unable to tell me whether I have a tax bill/liability or not because of this. 

On the MD 505 form that I now have to file and mail in because of this error my employer did,  is there any special spot I need to indicate?  will I need to submit the 505 NR? There's no way to e-file this.

Will I need to file MD 505 at all?

We file jointly and my spouse has no MD income nor ever worked there. This is the ONLY income report to MD, no business, earnings... nothing else. We have been PA residents all year and have never been MD residents.

[Vanessa A]

You may want to contact your employer to see if this is an error.  The line for MD is showing the locality as Philadelphia and your PA local wages are reporting nothing which if you live in PA, you should have had local income tax withheld. 

Since the MD line is local, you would not be able to file a state tax form to get a refund, although this seems more like an error as a quick Google search does not show a locality in MD of Philadelphia. 

[ndy856]

so does this mean MD comptroller already been reported that I have reported MD income even though I'm not a resident

[Vanessa A]

Your employer could have sent your W2 to MD, or it could have been a complete mistake and they only sent it to PA.  You would have to contact them to find out what happened and get a corrected W2.  

Have you filed form MW507 with your MD employer?  If not, you should do this to claim the exemption from MD withholding.  You will need to write EXEMPT on line 5 for the Commonwealth Of PA. 

[ndy856]

Yes, at the time of hire/onboarded, I did fill that out and I check a few paystubs and saw that some of the paystubs did say MD state but it just have $0 deducted. So who ever processed it must have done it with errors.

[DianeW777]

You have taken all the right steps for your employer. You have no state tax withheld for Maryland (MD) if your W2 section shown is correct.  In this case you can eliminate entering anything for MD (no wages or state ID) because they are reciprocal states and all of your income is taxed to PA. There is nothing to be refunded by MD so no need to file.

As long as you are confident and your paystub for end of year matches your W2, as well as checking with your employer as indicated by our awesome Tax Expert @Vanessa A you can be confident to proceed.