Do Federal Gov workers living in MD but working in Wash DC have to pay non-resident tax? Some sources say no because of reciprocity agreement, but TurboTx disagrees?

[robertdalzell123]

TurboTax does not seem to recognize this reciprocity agreement that DC and Maryland seem to have. It assumes that there would be non-resident income.

[ThomasM125]

No, a federal worker living in Maryland would not have to pay tax on income earned in the District of Columbia (DC). I'm not sure of the specific issue you are dealing with, but you would not even have to file a tax return for DC if your W-2 reported your wages only to Maryland. Otherwise, you would need to file a non-resident return in DC to recoup any taxes paid to the District.

[SteamTrain]

Yeah.....as long as the DC W-2 income is your only income from DC, then on the Personal Info page, you would NOT indicate you worked in another state (DC).

Some folks living in MD and working in DC....actually DO need to indicate they had income in DC ...for instance...if they owned a rental property in DC that they received income from, or if they had Self Employment 1099-NEC income for working in DC...then those $$ are taxable by DC first...before MD.