DanielV01
Expert Alumni

State tax filing

Yes, you apparently need to file two state returns.  But this is because your job in Virginia took out taxes to Virginia.  Maryland and Virginia have a reciprocal agreement which means that since you live (state of record) is Maryland, you only pay state income tax to Maryland and not Virginia.  File a VA-4 for with your non-military employer to stop having your taxes withheld to Virginia.  Here is an FAQ about reciprocal agreements:  https://ttlc.intuit.com/replies/4776822 

 Here is an FAQ about military residency:  https://ttlc.intuit.com/replies/3300147


Here’s what you’ll do in TurboTax:  click yes on the question “Did you work in another state outside of Maryland?”, and then enter Virginia.  You will want to fill out the Virginia return as a non-resident reciprocal state (TurboTax will generate that option).  Good news Virginia will return all the state (but not local) taxes you paid.  Bad news:  Maryland taxes all of the income you made in Virginia.

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