I work in Maryland, but live in West Virginia. Do I need to click YES on did I make money in another state or do I say NO and only claim the money on WV state taxes?

[IsabellaG · Accepted solution]

You say No, because Maryland and West Virginia have a reciprocal agreement, and you only pay tax on your wages in your home state of West Virginia. If you haven't already done so, file Form WV/IT-104 R with your employer so there won't be any withholding to Maryland.

[jaytkoso]

If I'm reading the question correctly you instead fill out the form MW507 so that your employer in Maryland can exempt you from Maryland income tax and withhold West Virginia income tax instead.  My impression is the other form suggested applies to the reverse of the question; those working in West Virginia and living elsewhere.

The only caveat is that I believe the business then has to register with West Virginia which although easy enough to do, they might think is too much hassle if they don't regularly have employees from outside their business location.  They would then file quarterly filings/payments with both Maryland and West Virginia.

[TomD8]

@jaytkoso  is correct.  Here's a link to MD Form MW507, which is the form you should submit to your MD employer:  https://forms.marylandtaxes.gov/current_forms/mw507.pdf

And you should answer No to the question about earning income in other states.