My legal residence is in MD, but I have been living in TX (and getting paid a non-taxable living stipend) for the past year while working on-site. My W-2 shows they withheld taxes in MD. Do I have to pay taxes in MD? If not, how do I get that money back? TX has no personal income taxes.
Thanks
If you are a Maryland resident, you will have to report all income regardless of where it was earned. If you had paid tax to another state, Maryland would allow a credit for the taxes aid to another state so that you would not be taxed on the same income twice at the state level.
Thanks. Why do they ask if we made money in another state if its just going to go back to our home state?
The question is asked because you may also have to file a return and pay tax in the other state. The income is always taxed in your resident state but usually also taxed in the state that you work in. In your case, you don't have a tax return in Texas because Texas doesn't have a state income tax. However, if you had worked in a state that does have an income tax, say New Jersey for example, you would have to file a return in both states.