Filing State Tax for Two States

Forum|Forum|5 years ago
April 6, 2021
11 replies
30 views

Hi there, if I interned in a company in Maryland and because of the Covid-19 pandemic I had to work from my home state in Texas. Do I need to file federal taxes and state taxes for Maryland. I know Texas doesn't do state taxes. Please advise.

MarilynG

Level 15

If you never worked in Maryland, you are not subject to Maryland Tax as a telecommuter in another state.

However, if Maryland Tax was withheld on your wages, you can file a Non-Resident State Return to Maryland to get a refund.

Click this link for more info on How to File a Non-Resident State Return.

Yes, you would also report your income on your Federal Return (no matter where you lived).

[Edited 4/8/2021 | 3:05 pm]

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SundayInSalem

Level 8

You do not have to file a Maryland income tax return if you never worked in Maryland. Your earnings are sourced to Texas which has no income tax.

Maryland explains in Example 3 of Employer Withholding Requirements for Teleworking Employees During The Covid-19 Emergency. (A MD withholding requirement means the employees wages are taxable to Maryland).

My business is based in Virginia with offices in Maryland and Washington D.C. Both of
my employees are Virginia residents. Generally, one works in the Maryland office and
the other in the Washington D.C. office. Both are teleworking in Virginia. Do I have a
Maryland withholding requirement?

No. Your employees are not Maryland residents and they are not performing services in
the state.