Your DC employer withholds DC wages unless you give them a Form D4-A that tells them to withhold MD instead.
For now, you will have to file DC and MD, in a special order.
- prepare your non-resident DC return.. This creates your tax liability.
- prepare your resident state return of MD and it will generate a credit for your income already being taxed.
The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.
It isn't possible for the program to create a credit before it knows the liability.
For more information on the DA-4, see this link.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
