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philsman
New Member

I live in Pennsylvania. I had a job in Maryland. The employer withheld Maryland state taxes. TurboTax is not recognizing the reciprocity between the two states and is calculating an amount due rather than a refund. How do I fix this?

 
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1 Reply
DawnC
Expert Alumni

I live in Pennsylvania. I had a job in Maryland. The employer withheld Maryland state taxes. TurboTax is not recognizing the reciprocity between the two states and is calculating an amount due rather than a refund. How do I fix this?

The reciprocity is handled by you submitting exemption Form MW 507 to your employer.   When you do this, your employer will only withhold PA taxes.  But since that was not done, you need to file the MD non-resident tax return to recoup those funds.   You will get a refund from Maryland because you don't owe tax there and will use that refund to pay the tax that you do owe to the state of PA.   Your resident state taxes all of your income no matter where it was earned.    But you do not have to pay taxes to MD.    Do your non-resident MD before you complete your resident PA return.     See the link below for instructions.  

 

How do I file a nonresident state return?

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