topic I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing in State tax filing

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

confused05 — Fri, 31 May 2019 18:14:15 GMT

Re: I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

re2boys — Fri, 31 May 2019 19:56:30 GMT

If you have become a permanent resident of PA, you should file a Maryland MW507 form with your employer to stop the withholding of MD taxes. You become a permanent resident of PA by your actions, such as changing driver's license, auto registrations, voting registration, establishing social ties etc.

In the year you moved, you would be considered a part year resident of each state and file a part year tax return to both states.

Due to the reciprocal agreement between PA and MD, MD agrees not to tax the wages of a PA resident and vice-versa.

However, you don't say when you moved to PA as a permanen...

re2boys — Fri, 07 Jun 2019 22:09:01 GMT

However, you don't say when you moved to PA as a permanent resident. If sometime in the middle of 2015, you will need to file two part year returns, one for each state. You only should be taxed by each state on the income earned while a resident of that state.

If you work in Maryland but reside in a reciprocal tax st...

SweetieJean — Fri, 07 Jun 2019 22:09:02 GMT

If you work in Maryland but reside in a reciprocal tax state (Pennsylvania, Virginia, West Virginia or Washington, D.C.),and your only income from a Maryland source is wages, you can be exempt from Maryland income tax and Maryland withholding tax on those wages. Follow the instructions for line 4 of the MW507 form.

Ask your employer to withhold PA taxes. Pennsylvania's state income tax rate is a flat 3.07% with no personal exemptions, but virtually no deductions or credits

http://forms.marylandtaxes.com/current_forms/mw507.pdf

This is a 3 yr old thread.

SweetieJean — Fri, 07 Jun 2019 22:09:03 GMT

This is a 3 yr old thread.

@SweetieJean Interesting.......I replied within the co...

re2boys — Fri, 07 Jun 2019 22:09:05 GMT

@SweetieJean Interesting.......I replied within the community tab and nothing indicated the age of the question that I saw, and I sorted by date.