- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
Do you have an Intuit account?
You'll need to sign in or create an account to connect with an expert.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
You will need to file in this order:
- MD non-resident
- DE resident
Always file the non-resident state first.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
You must file in both states. You'll be able to take a credit on your DE return for the taxes paid to MD, so you won't be double-taxed.
Your employer is correct to withhold MD taxes, since most, if not all, of your total state tax bill will be to MD.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
Thanks Tom. Which state return should I complete first?
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
As Joseph and Tom noted, you should do your nonresident state (Maryland) first so that the Maryland tax can be calculated, and then your state of residence (Delaware) so that the Maryland tax paid can be applied as a credit on the Delaware return.
**Mark the post that answers your question by clicking on "Mark as Best Answer"
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
Thanks, Joseph.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
Thanks Bill, and as well again to Joseph and Tom. Unsure as to why I hadn't seen their answers until yesterday.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
My understanding is that, if you are a resident of Delaware and you earn income in MD, you don't owe taxes to MD. If taxes from MD employment are withheld, then you must file to have them refunded. My question is whether I can ask my MD employer not to withhold taxes so that I do not have to file a MD return.
- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
I live in DE and work in MD, but my employer (State of MD) only withholds MD taxes. In which state(s) must I file tax returns, and in what order should I complete them?
"My understanding is that, if you are a resident of Delaware and you earn income in MD, you don't owe taxes to MD"
No, that's incorrect. DE residents who work in MD are subject to MD state income tax on their MD-source income. MD has tax reciprocity with all its bordering states EXCEPT Delaware. As a DE resident, your income is also subject to taxation by DE. Therefore you must file a tax return in both states. Your employer is correct in withholding MD taxes.
You will be able to take a credit on your DE return for taxes paid to MD, so you won't be double-taxed.
Still have questions?
Make a post