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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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I have several employees that live in Maryland but work here

Customer Question

I have several employees that live in Maryland but work here in Virginia. Should income tax be withheld for states Maryland and Virginia. Also on W2 form on box 16 which shows the amount reported to each state (MD,VA) the amounts that are shown are different can you tell me why that is?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

Q1: Should income tax be withheld for states Maryland and Virginia.

A1: As there is a reciprocal agreement between Maryland and Virginia, the answer is no, taxes should not be withheld for Virginia. SEE BELOW:

Virginia: If you work in Virginia and are a resident of the District of Columbia, Kentucky, Maryland, Pennsylvania, or West Virginia you do not have to pay Virginia income taxes on your wages. You would submit exemption Form VA-4 to your employer.

REFERENCE SOURCE:

http://taxes.about.com/od/statetaxes/a/reciprocal-agreements.htm

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Q2: Also on W2 form on box 16 which shows the amount reported to each state (MD,VA) the amounts that are shown are different can you tell me why that is?

A2: The information found at the following links will shed some light on this for you.

https://ttlc.intuit.com/questions/1559337-should-the-sum-of-2-box-16-s-from-a-w-2-exceed-box-1-total-wages

https://www.taxslayer.com/support/KnowledgebaseArticle508.aspx?language=1

Let me know if I can be of further assistance to you regarding this matter.

Expert:  Tax.appeal.168 replied 1 year ago.

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