Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
woosa
New Member

I'm a Pennsylvania resident with income in Maryland. Why do I have Pennsylvania tax due?

Why do I have a Maryland refund but owe Pennsylvania taxes?
1 Best answer

Accepted Solutions
re2boys
Level 9

I'm a Pennsylvania resident with income in Maryland. Why do I have Pennsylvania tax due?

If you had MD withholding on your pay checks, then you should get a MD refund.  But as a PA resident, all income is taxable by PA so you owe taxes on your MD income.  PA and MD have a reciprocal agreement that MD will not tax PA resident/s wages.

1.  Read this, and get that withholding stopped ASAP:

http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Income_Tax/Filing_Information/D...

Some MD employers will withhold PA taxes, just ask.

2.  Complete federal income tax return.

3. Prepare a MD nonresident return, see MD instructions in the above link.  If your only MD income was from wages, you should get a refund of all taxes withheld.

4.  Prepare a PA resident return, declaring all income, regardless of where earned.  Unless you made PA estimated payments, you likely will owe quite a bit.

5. If your employer won't withhold PA taxes (he's not required to do so), consider doing PA estimated taxes.

View solution in original post

1 Reply
re2boys
Level 9

I'm a Pennsylvania resident with income in Maryland. Why do I have Pennsylvania tax due?

If you had MD withholding on your pay checks, then you should get a MD refund.  But as a PA resident, all income is taxable by PA so you owe taxes on your MD income.  PA and MD have a reciprocal agreement that MD will not tax PA resident/s wages.

1.  Read this, and get that withholding stopped ASAP:

http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Income_Tax/Filing_Information/D...

Some MD employers will withhold PA taxes, just ask.

2.  Complete federal income tax return.

3. Prepare a MD nonresident return, see MD instructions in the above link.  If your only MD income was from wages, you should get a refund of all taxes withheld.

4.  Prepare a PA resident return, declaring all income, regardless of where earned.  Unless you made PA estimated payments, you likely will owe quite a bit.

5. If your employer won't withhold PA taxes (he's not required to do so), consider doing PA estimated taxes.

Dynamic AdsDynamic Ads
Privacy Settings
v