topic Live in PA Work in MD in State tax filing

Live in PA Work in MD

myers830 — Fri, 21 Feb 2025 15:31:02 GMT

I live in PA but I work in MD. My W2 shows that PA state taxes were withheld. When I did my taxes it now says I owe thousands in MD taxes. I worked in MD before as a PA resident and never paid MD taxes. What am I doing wrong?

Re: Live in PA Work in MD

KrisD15 — Fri, 21 Feb 2025 15:37:29 GMT

Pennsylvania and Maryland have a reciprocal agreement, you only pay tax to the state in which you live, in your case, Pennsylvania.

Did you enter your state of residence as Pennsylvania in the Personal Info section?

Which state(s) did your employer withhold state tax for? Did they withhold local tax as well?

When you started the Maryland return, did TurboTax say that was a reciprocal state?

Did you live in Pennsylvania the entire year of 2024?

Re: Live in PA Work in MD

myers830 — Fri, 21 Feb 2025 18:18:12 GMT

State of residence is PA and the withholdings on the W2 show they are for PA. They did not take out local taxes.

I'm not sure if there was any mention of it being a reciprocal state. I did live in PA the entire year.

Re: Live in PA Work in MD

MaryK4 — Fri, 21 Feb 2025 22:29:15 GMT

If you live in Pennsylvania and had Pennsylvania withholding, you do not have to file a Maryland return. See Personal Tax Tip #56. @myers830