@ErnieS0, @ThomasM125
Was I supposed to be taxed in MD if I am a MA resident and was hired for an internship in MD that was fully remote due to COVID? I would not have taken this position if I had to relocate. The internship started and ended in 2020 and was fully remote for all participants. The company did withhold MD taxes, and another expert on this forum stated that I should claim 0 MD income and get a full refund. Based on your previous answers here, I am no longer sure.
Accordind to MD tax alert, "Maryland employer withholding requirements are not affected by the current shift from working on the employer’s premises to teleworking because taxability is determined by the employee’s
physical presence. " On ther other hand, they also say, " Compensation paid to a Maryland nonresident
who is teleworking in Maryland is Maryland-sourced income, and therefore, subject to
withholding. ". It looks like a contradiction to me. If taxability is determined by the employee's physical presence, I should only be taxed in MA. But if it is indeed a Maryland-sourced income, I should be taxed in MD. I am totally lost. Please help!
