Q: "How do I accurately file taxes and fill out the MW507 form as a person domiciled in PA but a statutory resident of MD?"
A: Under these circumstances you would be liable for MD state income tax and thus would not file Form MW507 at all. (Exception: if you live in a PA jurisdiction of York or Adams County, you would complete the MW 507 in order to exempt yourself from local MD income tax.)
Q: Will I end up paying taxes in both states?
A: Not in effect. If you are both a statutory resident of MD and a domiciliary resident of PA, you will have to file a resident tax return in both states, reporting 100% of your income to each. But you'll be able to claim a credit on your PA return for the tax paid to MD on the income that is taxed by both states, thus avoiding double taxation.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
