Get your taxes done using TurboTax
In most cases, if you live in state that has income tax, you will get a credit on your tax return for the state you live in for part or all of the tax that you pay to the other state.
Once you've determined that you need to file a nonresident state return, the first thing you want to do is make sure you've filled out the Personal Info section correctly:
- With your return open, select My Info in the menu.
- On the Personal info summary screen, scroll down to Other State Income, and select Edit.
- At the Did you make money in any other states? question, answer Yes and make sure your nonresident state(s) are selected from the drop-down. Maryland. Please see image below.
- Select Continue to return to your Personal info summary.
After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.
Tip: To ensure accurate calculations, always complete the nonresident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.
TurboTax FAQ: How do I file a nonresident state return?
Going forward, you can avoid having to file two state tax returns in the future by asking your former employer to only withhold taxes from your resident state of Pennsylvania.
As a worker in a reciprocal state, you can fill out that state's exemption form and give it to your employer if you don't want them to withhold taxes for your work state (Maryland). If you do this, make sure your employer also withholds taxes for your resident stater (Pennsylvania), otherwise you may get hit with underpayment penalties come tax time.
Be sure to fill out Maryland Form UMW507, and give it to your employer asap.
