If you claim MD residency for state tax purposes, your income from services performed in VA is not subject to VA taxation or withholding.
If you claim MD residency, you should file VA Form VA-4 with your employer, showing that you are exempt from VA withholding: https://www.tax.virginia.gov/sites/default/files/taxforms/withholding/any/va-4-any.pdf
You may obtain a refund of any incorrectly withheld VA taxes by filing VA Form 763-S: https://www.tax.virginia.gov/sites/default/files/taxforms/individual-income-tax/2018/763-s-2018.pdf
See this for full details: https://www.tax.virginia.gov/sites/default/files/inline-files/tb-19-2-military-spouse-veterans-benef...
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
