How do I file my state income taxes if I work in MD but live in VA?

[Anonymous]

In 2016 and 2016 I did this by paying income tax to Maryland and taking advantage of the tax return credit for taxes paid to Maryland in VA. I got a letter from the Department of Taxation in VA that is demanding I pay $6000 to them in taxes because I owed them the income tax and that I need to file an amendment to MD to try to get the taxes I paid them back.  VA is also charging my $500 in interest for not paying my taxes on time. I need help navigating this and I want to know how to do my taxes correctly for 2017.

[MarilynG]

If you are a VA resident, all your income belongs to VA and is taxed there.  When you work in MD and pay taxes to MD, you are correct that you report those taxes on your VA return and they give you credit for them.  

You then file a non-resident return to MD to get those taxes refunded to you, as you may still owe tax on your income to your home state of VA.

Click the link for more info to help you with living and working in multiple states.