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Level 1
posted Apr 8, 2024 8:55:44 PM

DC/Maryland/Virginia reciprocity: Do I need form 763-S or can I just file as nonresident?

Two weeks before 2023 I bought a house in MD and left VA. The entire 2023 I lived in MD. So, my 2023 W2 has only VA withholding as I thought updating my address with my Agency (in DC) would cover all forms. Naturally, MD says I owe them an enormous amount of money. Can I just file for VA as a non-resident, then file for MD as a full resident, and be done with it? It says VA would give me back all my withholdings which would cover what I owe MD. Or should I file only for MD and pay the money owed, then file form 763-S along with my completed MD return and wait for a refund from VA? Does it matter? I called the IRS and they say they don't care what I do as it doesn't affect them. 

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1 Best answer
Expert Alumni
Apr 12, 2024 2:55:32 PM

You can file VA nonresident and MD resident and be done or you can file the 763-S and wait. You need to be sure to fill out the correct paperwork for your employer, VA-4, and then check your paystubs.

See Which states have reciprocal agreements? - TurboTax Support

1 Replies
Expert Alumni
Apr 12, 2024 2:55:32 PM

You can file VA nonresident and MD resident and be done or you can file the 763-S and wait. You need to be sure to fill out the correct paperwork for your employer, VA-4, and then check your paystubs.

See Which states have reciprocal agreements? - TurboTax Support