I work in Maryland but I was taxed by Maryland and New York... How is that possible? Also my state wages was split between Maryland and New York... How do I go about this?

What do you mean by you were taxed by MD and NY - do you mean income tax was withheld from your paycheck for both states by your employer? Also, please be specific about your situation - did you live or work in NY at any time during the year?

I live in Maryland and my employer is Louisiana (New Orleans) on my W2 my state wages for Maryland is 15, 212.40 and it says state wages for New York is 12, 578 my total wages is 27,790.40

Sounds like your employer messed up. They must think that at some point during the year you lived or worked in NY. Talk to your HR department immediately - find out whythey did this, and ask them to issue a corrected W2 immediately that shows MD wages only. Otherwise NY will think you owe them taxes (which you don't, assuming you didn't live or work there at all during 2008) and will come after you for not paying.

One other thing - were any taxes withheld during the year from your wages for NY State?

I understand you perfectly and I will contact my employer as soon as possible. I am not a resident of New York and did not work in New York... I also only had taxes withheld from Maryland. It did not make any sense to me.