- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
@jbur943 wrote:
I only changed it with my employer.
Generally speaking, when you live in state A, but physically work in state B, you are required to file in state B as a non-resident, and you report your state B wages and pay taxes to state B. Then, you file in state A and report all your world-wide income (wages, but also investments and so on) and pay taxes to state A. State A gives you a credit for taxes that you pay to state B on the same income.
However, Maryland and Pennsylvania have a reciprocity agreement. As long as you don't maintain a residence in Maryland, you only file a PA return if you live in PA but work in MD.
https://www.marylandtaxes.gov/forms/Personal_Tax_Tips/tip56.pdf
(It would be a much different problem if, for example, you kept an apartment in MD that you lived in Monday-Thursday and then spent weekends at home. But we won't go down that road unless we have to.)
Now in your case, you will need to file a nonresident return for Maryland, report zero Maryland wages, and the Maryland withholding. That will result in a full refund of the Maryland withholding. Then you will file a resident return in PA that reports all the PA income (even the income that was declared for Maryland). While Turbotax may assign your income partially to MD based on your W-2, you can override this and assign all the income to PA when you prepare your return.