ErnieS0
Expert Alumni

State tax filing

Maryland residents do not get credit for local tax paid to Maryland municipalities. It is part of your Maryland tax and is added to Form 502 on line 28 as Local Tax. Your local income tax is based on where you live - not where you work, or where your tax preparer is located.

 

Your employer probably did not withhold Maryland local tax. Talk to them. They may be able to do it so you won’t owe.

 

PA local tax withheld should be on your W-2 in Boxes 18-20.

 

You can claim a tax credit on MD Form 502CR for taxes paid to any other state and locality in the other state. Enclose a copy of your local PA Earned Income Tax return with your MD filing.

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