GeorgeM777
Expert Alumni

After you file

@sarahsmiles   The VA Department of Taxation on their webpage provides the following with regard to VA residents who work in MD:

 

"Virginia Residents who:

  • Work in Maryland, Pennsylvania, or West Virginia, are exempt from taxation in their respective state if:
  1. They are present in the other state for 183 days or less during the year, and
  2. Do not maintain an abode, such as a house or apartment, in their respective state and
  3. Receive only wage or salary income in the other state.

Thus, if in 2021 you became a VA resident, it would appear that you do not owe any tax to MD for 2021.  However, be mindful of number 1 above regarding the number of days present in MD.  If the number of days should exceed 183 days, then you may likely owe tax to MD, as a non-resident.  

 

You mentioned that your employer is not withholding VA taxes, but we assume your employer is withholding MA taxes.  In that case, and assuming none of your MD source income is subject to MD tax, then when you prepare your state returns, you will want to begin with your MD return  (your non-resident state).  Assuming your income is not subject to MD tax, you will be eligible to receive, as a refund, all of the MD withholding.  After completing your MD return, you can then begin to prepare your VA return, which we assume is now your resident state.

 

Your question raises another issue, and that is, where were you living before you moved to VA in June 2021?  If you were a resident of another state, then you may owe income tax to that state, in addition to whatever tax you may owe to MD given that MD is the state where you performed services for which you were paid.  You can follow-up with additional questions regarding your residency and tax liabilities, but as a reminder, do not include any personal identifiable information in any follow-up posts. 

 

For now, if you want your MD employer to stop withholding MD tax because you have determined that you do not owe any tax to MD, you need to submit exemption Form MW 507 to your employer.  Additionally, below is a link to the VA tax website that addresses tax reciprocity which you might find helpful.  

 

Virginia Tax Reciprocity

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