States do not tax their own refunds @WilmaandRick. If that's your only income for each of those states, then you will have $0 income for Maryland and Virginia after the subtraction and you will owe no tax.
You may have to file because state filing requirements consider your total income. However, if you owe no tax there is no non-filing penalty. All filing and nonpayment penalties are based on unpaid tax. If you owe no tax, there is no penalty or interest.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
