How do I request a refund of extra taxes I paid to the state of Maryland?

[Athena_7]

How can I amend my 2022, 2023, and current 2024 tax returns to remove any obligation to pay state income taxes to Maryland?  I work for the Social Security Administration (SSA), a federal employer, at their headquarters building in Maryland.  However, since early 2022 I have been permanently domiciled in Washington D.C., and I have primarily teleworked from Washington D.C.  SSA changed my state withholding to Washington D.C. in mid-2024.

Additional Background:

In January 2022 I took a new job at the Social Security Administration (SSA) in Maryland.  My permanent residence became Washington D.C. with my fiancé.  However, I also rented a room in Maryland for several months before we got married on May 7, 2022.  Because I was working in Maryland, and SSA was paying my state tax to Maryland, I thought I had to file a non-resident tax return in Maryland (in addition to D.C.)  So I filed as a nonresident in Maryland in 2022 and 2023.  However, I recently learned that I am not technically a resident of the state of Maryland, as I lived in Maryland less than six months (Jan 1, 2022 through May 6, 2022).  It appears that I should amend my past tax returns to get back the extra income tax that I paid to Maryland in 2022, 2023, and now in 2024, as my Maryland tax has been higher than my D.C. tax.  I am currently working on my 2024 tax return, and I filed all tax returns through TurboTax.

Thank you for your assistance in advance.

[MaryK4]

You can amend your tax return to request a refund from Maryland.  See How do I amend my state tax return? - TurboTax Support - Intuit

For 2022, if you were a Maryland resident, you will have to file Part-Year Maryland return for the time you were a Maryland resident.  If you are going to a change to DC reporting of the income under the reciprocity agreement, you will have to amend the DC returns as well.  If you claimed the credit for taxes paid to a nonresident state on the Dc returns, you will have to correct that as well.  You also said you filed as a nonresident of Maryland for 2022 and 2023- so you would not change your resident status, just the income reported.  

[Athena_7]

Hello.  Thank you for your fast reply.

My employer sent state taxes to Maryland in 2022, 2023 and half of 2024.  For 2022 and 2023 I filed as a nonresident in Maryland.  However, now I understand that I was never technically a resident in Maryland.  Because my employer is federal, I should not have needed to file in Maryland.  However, my employer sent state taxes to Maryland.  Do I need to amend my federal return as well as all my state returns?  Is there any way to file my 2024 taxes to claim that the money sent to Maryland should have been sent to D.C.?  Do I need to amend only my state returns?  If so, how do I do that?  Would you recommend that I go to a professional accountant for these amendments?  (I have an accounting degree, but I have no idea how to do this.)

Thank you.

[DianeW777]

It depends. You can seek out a tax professional if you choose.  

• Find a TurboTax Verified Tax Professional near you

When you choose to amend, you will bring up the federal because everything flows from it to the state returns. Because Washington DC and Maryland (MD) have a reciprocal agreement, then you should have received a full refund of your MD taxes for those years. Likewise all tax should have been paid to DC as your resident state. It's possible you used the 'Credit for Taxes Paid to Another State' on your DC return when it did not apply. This could mean you would owe money to DC on an amendment.

• What states have reciprocal agreements?
• What is a state reciprocal agreement?

Amend both MD and DC for the appropriate results. Keep in mind that you have time, tax year 2022 must be completed no later than April 15, 2026. You will check your W-2s for state withholding accuracy, then in the MD state return you will be a nonresident. TurboTax should ask about reciprocity. DC will include all income.  Be sure your original refund or balance due is correct before you begin and review the instructions before you begin. @MaryK4 provided the link and it is placed here for your convenience.

• How do I amend my state return?
• How do I amend a prior year tax return? (although it says federal you will also be able to amend your state return)