W2 Incorrect State

Forum|Forum|4 years ago
April 3, 2022
2 replies
5 views

My W2 has the incorrect state listed.

I am currently a resident of Maryland but my W2 states I have been paying state taxes in DC.

I’ve almost finished filing my taxes and it shows I owe 5k in Maryland state taxes. Is this so high due to paying the wrong state? Also how do I go about getting the money back we’ve been paying incorrectly to DC?

Residency

LenaH

Employee Tax Expert

The reason your taxes in Maryland are so high is because you had no state tax withholding for Maryland during the year. Going forward, please tell your employer to withhold Maryland state income taxes.

Per the District of Columbia, you do not need to file a DC return if:

You were not required to file a 2021 federal income tax return
You were not considered a resident of DC during 2021

Therefore, if you did not live in DC at all during 2021, you do not need to file a return.

To get a full refund of taxes paid, you must file a Nonresident Request for Refund (D-40B). You can do this in TurboTax by adding a state return for DC and following the on-screen instructions.

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TomD8

Alumni - Champ

If you were never a resident of D.C. in 2021, file DC Form D-40B to obtain a refund of the incorrectly withheld D.C. taxes. Here's a link to the form:

https://otr.cfo.dc.gov/node/1576061

As a resident of MD in 2021, you will owe MD taxes on all your income. If you had no MD taxes withheld, you'll owe the entire amount.

If you live in MD but work in D.C., file DC Form D-4A with your employer to stop the D.C. withholding.

https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/48019_2015_D-4A.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.