Hello Mr. and Mrs. B,
Yes, you are right. VA has reciprocal agreement with KY, MD, PA, WA, D.C., and WV. That means you only pay tax to the state where you reside. This agreement is for all taxpayers, not just federal workers. So your employer should not withhold tax from you for MD, instead they should only withhold for VA.
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Have an amazing day.
AR (CPA 10+ years)
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