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kk314
New Member

Two states wages total exceed Federal total wages

Hello!

 

I lived in Virginia and moved to Maryland in 2023. On my W2, the total of "State wages, tips, etc" in box 16 is more than "Wages, tips, other compensation" in box 1. The total is even more than I earned (salary + bonus) during the whole year. No other benefits were received from the company.

More detail: My MD wage and tax is matching with my year-to-date on my last paystub in 2023. But my VA wage on W2 is more than the year-to-date on my last paystub received in Virginia. VA tax withhold is correct on my W2.

Question: Does this mean that the payroll processing company made a mistake on my VA wages?

 

Thank you.

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2 Replies
Vanessa A
Expert Alumni

Two states wages total exceed Federal total wages

On my W2, the total of "State wages, tips, etc" in box 16 is more than "Wages, tips, other compensation" in box 1.  This happens when you have federally deductible items withheld from your pay such as 401K contributions. So this alone does not mean something is wrong if you made some type of tax exempt or tax deferred contributions from your wages.

 

 The total is even more than I earned (salary + bonus) during the whole year. No other benefits were received from the company. If this is the case, you would need to contact your employer and get them to correct your W-2.  There is no reason they should report more than you were actually paid.  It is likely an error on their part.

 

 

Question: Does this mean that the payroll processing company made a mistake on my VA wages? Yes, it sounds like payroll made a mistake.  Since they took taxes out for both VA and MD, it sounds like they are aware you moved?  Since MD and VA have reciprocity, they should only be withholding for the state in which you live, not the one where you work.  So, if you made $45,000 while a resident of VA and then $55,000 while a resident of MD, your VA wages should be $45,000 and your MD wages should be $55,000.  Contact your employer to ask if they can issue you a correct W-2 for the state. 

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kk314
New Member

Two states wages total exceed Federal total wages

This is what I thought.. Thank you so much for clarifying it.

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