@DMarkM1 I am a full resident in MA, but my duty station was in MD in 2022 so I was teleworking living and working in MA. The employer withheld MD and MA taxes from my check. I understand that I need to file MD as non resident, but does that income consider to be MD sourced?
That MD tax notice is confusing and contradicting. It says:
"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. ... Income is deemed Maryland-sourced income when the income is compensation for services performed in Maryland. "
So that says that is it not MD sourced income. But then it says this:
"...Unlike the aforementioned states, Delaware has not entered into a reciprocal agreement with the state of Maryland. Compensation paid to a Maryland nonresident who is teleworking in Maryland is Maryland-sourced income, and therefore, subject to withholding."
So what is it?
