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New Member
posted May 31, 2019 9:28:38 PM

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?

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1 Best answer
Level 9
May 31, 2019 9:28:38 PM

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.

1 Replies
Level 9
May 31, 2019 9:28:38 PM

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.