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confused05
New Member

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

 
5 Replies
re2boys
Level 9

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

If you have become a permanent resident of PA, you should file a Maryland MW507 form with your employer to stop the withholding of MD taxes.  You become a permanent resident of PA by your actions, such as changing driver's license, auto registrations, voting registration, establishing social ties etc.

In the year you moved, you would be considered a part year resident of each state and file a part year tax return to both states.

Due to the reciprocal agreement between PA and MD,  MD agrees not to tax the wages of a PA resident and vice-versa.

re2boys
Level 9

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

However, you don't say when you moved to PA as a permanent resident.  If sometime in the middle of 2015, you will need to file two part year returns, one for each state.  You only should be taxed by each state  on the income earned while a resident of that state.

SweetieJean
Level 15

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

If you work in Maryland but reside in a reciprocal tax state (Pennsylvania, Virginia, West Virginia or Washington, D.C.),and your only income from a Maryland source is wages, you can be exempt from Maryland income tax and Maryland withholding tax on those wages. Follow the instructions for line 4 of the MW507 form.

Ask your employer to withhold PA taxes.  Pennsylvania's state income tax rate is a flat 3.07% with no personal exemptions, but virtually no deductions or credits

http://forms.marylandtaxes.com/current_forms/mw507.pdf

SweetieJean
Level 15

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

This is a 3 yr old thread.
re2boys
Level 9

I work in MD but moved to PA and pay about 6% in MD income tax. I am wondering how this change is going to effect my taxes and if changing over my licence has any bearing

@SweetieJean    Interesting.......I replied within the community  tab and nothing indicated the age of the question that I saw, and I sorted by date.
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