@Lizy , am not sure I understand the situation --- what I get is :
(a) you a resident of MD -- don't understand "reside in both MD and PA, tax resident of MD". You can be a resident of ONE state at a time.
(b) you are employed (and all income is from employment ) in PA -- don't understand "employer withheld state income from both states"
(c) in such a situation ( i.e. if ONLY Bold is true ) , you needed to file ONLY a resident state --PA . Because that should have been withheld and there would be NO non-resident state.
If the employer mistakenly had withheld only PA then you would have to file MD as resident, and PA either as Non-Resident and ask for return of all withholding asserting reciprocity between the two states of PA and MD. Usually this is a special form for the return of the withheld taxes - you often do not have to do this using a non-resident filing but can do that also. I
Is your case where the employer withheld for each state only for part of the year e.g. Jan through June for PA and Jul through Dec for MD ? In such a case and assuming that you were a resident of MD for the whole year, you would file a Non-Resident return for PA covering Jan through June withholdings and allocating all the income to MD i.e. zero to PA -- thus all your taxes would be refunded. Then you prepare the MD return with the whole year income ( which you would do any ways and claim NO earnings in another state ). This then would result in all income being taxed ONLY by your resident state -- MD
Does this make sense ? Do you need more help ?
pk
