BillM223
Expert Alumni

State tax filing

First, please read this Virginia webpage about your situation. "Virginia Residents who:...Work in Maryland, Pennsylvania, or West Virginia, are exempt from taxation in their respective state if:...Receive only wage or salary income in the other state." That sounds like you, right?

 

Read further on down:

"

Virginia residents:

If you accept employment in a reciprocity state and meet the criteria for exemption, ask your employer to withhold Virginia tax. If your employer will not withhold Virginia tax, ask that no tax be withheld. You must then make estimated tax payments to Virginia.

 

If your employer withholds tax for the other state and you find out that you are exempt, correct your information with your employer for the future, and contact the other state to find out how to file for a refund.

"

 

So,

1. ask your employer to stop withholding for Maryland and start withholding for Virtgina.

 

2. For any year in which Maryland tax was withheld, file a non-resident Maryland return with a state income of zero. This will force your Maryland withholding to be refunded to you.

 

3. You can do this now for 2019, but you will need to amend 2018.

 

4. You have to do this because, unlike nonreciprocity state, Virginia will not let you deduct taxes paid to Maryland in your situation. You have to make sure that the income and the taxes are for Virginia.

 

Please look at the posts above and especially at the remark about form MW507.

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