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.

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