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c-eu-snyder
New Member

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

I lived in MD the previous tax years, but moved to DC at the beginning of the most recent. I maintained a job at the same company throughout. After the move, I forgot to fill out an MW507 form. Listed on one page of my W2 is TOTAL STATE and MD income tax. Listed on the second page of my W2 is DC income tax. Was I taxed in both MD and DC? Do I need to file for taxes for both?

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DanielV01
Expert Alumni

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

DC and Maryland have a reciprocal agreement, which means that you pay "state" taxes to DC and not Maryland.  In the Maryland line you refer to, if there is an amount listed in Box 17,  you will want to file a MD return in order to get a refund of mistaken withholdings.  The following instructions will assist you to get the correct result on the MD nonresident return:

You will go through a number of screens asking for information such as residency, county you worked in, etc.  You eventually get to a screen that states Here's the income that Maryland handles differently.  At the bottom, click Done with income.  The next screen asks about Maryland Wage Income.  In the box "Wages From Maryland Sources" type in a zero.  You will then get a refund for all Maryland state taxes you had withheld.

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8 Replies
DanielV01
Expert Alumni

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

DC and Maryland have a reciprocal agreement, which means that you pay "state" taxes to DC and not Maryland.  In the Maryland line you refer to, if there is an amount listed in Box 17,  you will want to file a MD return in order to get a refund of mistaken withholdings.  The following instructions will assist you to get the correct result on the MD nonresident return:

You will go through a number of screens asking for information such as residency, county you worked in, etc.  You eventually get to a screen that states Here's the income that Maryland handles differently.  At the bottom, click Done with income.  The next screen asks about Maryland Wage Income.  In the box "Wages From Maryland Sources" type in a zero.  You will then get a refund for all Maryland state taxes you had withheld.

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c-eu-snyder
New Member

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

When filing for DC taxes, do I need to claim credit for MD taxes paid?
DanielV01
Expert Alumni

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

No.  The reciprocal agreement supersedes the credit.  You receive a full refund from MD for taxes withheld there, but you use the refund to pay DC.  
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c-eu-snyder
New Member

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

Thanks for your help so far. I have one more question - The TurboTax software is asking me to answer the following questions:

1. Income subject to income tax in other state, received while a resident of D.C.
2. Amount of tax paid to another state from your state return.

I have followed your previous direction regarding MD Wage Income. I have also filed for DC taxes w/o claiming a tax credit for MD. Do I put a 'zero' in both of those fields?
DanielV01
Expert Alumni

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

Correct.  You will put zero because even though MD reported and initially taxed the income, you will receive a full refund because your income is not taxable there.  So put zeroes in those boxes.
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Taxseason1
New Member

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

This is a super helpful thread, thanks, DanielV01. I have one more layer to ask about.

 

I was a DC resident for half of 2019 and worked in MD. Then I moved to GA for the second half of 2019. I have Box 17s for MD and GA. I zeroed out my "Wages from MD sources" in order to get back the taxes I paid to MD so I can pay them to DC, as you stated in earlier posts.

 

When I am filling out my DC return, do I list anything under "Summary of taxes paid to other states?" Should I list the income and taxes I received and paid as a part-year GA resident under double-taxed income and tax paid to Georgia on double-taxed income?

JotikaT2
Expert Alumni

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

It depends.

 

You would only do this if you still lived in DC when you earned the income in Georgia.  But if you no longer resided in DC, you would not need to claim a credit for the income earned and taxed in GA as it would only be taxed in one state.

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lpatterson88
New Member

I lived in DC but worked in MD for the tax year. How do I know if taxes were taken out by both MD and DC? My W2 has multiple boxes (Box 15) w/ TOTAL STATE, MD, and DC.

Hello,

 

I have a similar question.  I live in DC full time, and my employer's office was located in VA in the beginning of 2019 before the office moved to DC in spring 2019.  As I am filing in VA for a refund of taxes paid to VA, would I put a 0 in both spaces on the DC Out-of-state tax credit Worksheet Calculation K: 

-Income subject to income tax in other state, received

while a resident of D.C.
-Amount of tax paid to another state from your state
return
 
Thank you for any guidance you have!
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