State tax filing

No, you will not need to file a MD return, just a DC return. If the state that you live in and the state that you work, have a reciprocity agreement, you will not have to file two state returns. The states of DC and Maryland do have a reciprocity agreement.

 

As a worker in a reciprocal state, you can fill out that state's exemption form and give it to your employer if you don't want them to withhold taxes for your work state. If you do this, make sure your employer also withholds taxes for your resident state, otherwise you may get hit with underpayment penalties come tax time.

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