I live in Virginia and I work in Maryland. I was using the MW 507 for taxes instead of the Virginia tax form for 2015. How does this affect my taxes?

[shipley_m1]

I do not earn any income in Virginia. I only income by working for my employer which is located in Maryland.

[TomD8 · Accepted solution]

Virginia and Maryland have tax reciprocity.  If you work in MD and live in VA, your wages are not subject to MD income tax.  You only have to file a Virginia tax return.  For tax purposes, the wages you earn in MD are considered VA income, and taxable by VA.  Tax reciprocity applies only to W-2 wages, not to other types of income.

Form MW-507 is a form that you turn in to your MD employer to advise him that you are a VA resident and not subject to MD withholding.  It is not a tax return form.