I am a PA resident and I earned 2021 1099-NEC business income from Virginia (large amount) and Maryland (small amount - $900).
TurboTax instructed me to file a Virginia 763-S (non-resident who owes zero) and that I owed zero to Virginia for 2021. TurboTax did not prompt me about any Maryland filing.
PA of course has reciprocity with VA and MD. However - it's pretty clear that reciprocity is only for wages and salaries and the VA instructions clearly indicate that 1099-NEC is *business income* not wages.
I had the same situation in 2020 and I filed the same 763-S with VA and nothing with MD. Virginia received the 763-S and other than telling me I had to refile with a copy of my PA return (to prove I paid taxes, I guess) - Virginia seemed perfectly happy with me claiming zero tax due.
So my two questions:
1) Since I earned 1099-NEC business income in Virginia but I live in Pennsylvania - am I correct to file the 763-S to Virginia with the "zero tax due"? Or should I file the standard Virginia non-resident form and pay taxes on the 1099-NEC business income earned in Virginia?
2) Do I need to file anything with Maryland?
If I owe the money to the other states then I guess I owe the money and I'll have to amend 2020 return and pay for 2021. But I do need to know.
Thanks!
