I live/work in VA and some work in DC. These states have a Reciprocal Tax withholding agreement and I supplied employer with Form D-4A Certificate of Nonresidence. But my employer gave two W-2s:
• The VA W-2 has everything filled out normally, including box 17. This one represents my total earnings (DC & VA)
• The one from DC is mostly blank except Box 15 & 16. Box 16 has different State Wages (corresponding to the portion worked in DC), and there is nothing in Box 17.
It is my understanding that I should fill out all of this on one W-2 entry in TT, and I know how to do it, BUT:
1. Is this normal or should I have only received the one showing my Resident state?
2. Does this mean I have to file DC state taxes?
It depends.
Every employer has their own way of reporting things.
In regards to your questions, you are correct. There is state reciprocity.
You only need to complete your information for Virginia as this is your state of residence.
Since you did not have any withholdings within D.C., you do not have a filing requirement there.