gosalh
New Member

State Withholding taken twice from paycheck

Hello, i'm new to the USA (originally British) and recently moved to Maryland and started a new job in Virginia. Looking at my first paycheck, looks like i've been double taxed on the State Withholding - taxed by the States of Maryland and Virginia. My employer has fixed this now apparently.

How would i claim back the tax that the State of Virginia took from me? Would i need to complete something called a Non-Resident tax return? And can i do this within Turbotax myself?

Thank you!

Rachel_W
Expert Alumni

State tax filing

Yes, you will need to file a Form 763-S Virginia Special Nonresident Claim For Individual Income Tax Withheld.  When you indicate that you are a resident of Maryland but worked in Virginia, and your Form W-2 has Virginia Taxes Withheld, TurboTax will walk you through the preparation of this form.

You will need to print and mail Form 763-S with your Form W-2 attached showing the Virginia withholding.  You will receive the entire amount of your Virginia withholding back since you were a resident of Maryland.

Maryland and Virginia have a reciprocal agreement, which means you pay taxes in the state where you *live*, not to the state where you work.  This is a very common situation for residents of Maryland and Virginia.

View solution in original post

State tax filing

Hello, 

Regarding below,  If I file 763-S for Virginia, once I get refund from Virginia, how do I pay back to Maryland. I was thinking Turbo tax would take care of Maryland State tax, since I'm a resident of MD, but work at Virginia/Employer and tax is withheld as Virginia. Please advise as Turbo tax, says I need to file 763-S, but doesnt say if I need to pay to Maryland Thanks