MindyB
Expert Alumni

State tax filing

Yes, possibly.  Without seeing your return, it is normal to owe a small balance to Delaware like $35, but this is only because your employer likely already withheld taxes from your paychecks throughout the year. 

 

Because Maryland and Delaware do not have a reciprocity agreement, Delaware requires you to file a non-resident return and pay tax on the $37,250 you earned within its borders, while Maryland requires you to report your full $48,000 income because you live there. 

 

To prevent you from being double-taxed, Maryland will give you a "Credit for Taxes Paid to Another State." 

 

You can read more about living and working in different states here: Multiple States—Figuring What's Owed When You Live and Work in More Than One State

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