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Level 1
posted Mar 18, 2020 12:07:38 PM

If we live in Washington, DC but our wages are only from Maryland and Virginia, do we need to file a Maryland and Virginia state tax form?

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1 Best answer
Expert Alumni
Mar 20, 2020 5:46:20 PM

No, under the reciprocity agreement, you only report/pay tax on wage income in your resident state- assuming that you had the correct tax withholding from your paycheck.  If you did not have DC tax withheld you would have to file a nonresident return to get the tax back from Virginia or Maryland OR file the nonresident tax on the income return and then claim a credit on the DC return. 

@shach94

 

3 Replies
Expert Alumni
Mar 18, 2020 12:26:49 PM

For MD, if you are a nonresident and have MD-source income, you are required to file a return.

 

Learn more here

 

Here are the VA rules:

 

Part-year and nonresidents

 

Individuals are required to file if they:

(1) receive any income from Virginia sources, and

(2) meet the gross income test, below.

 

Individuals are required to file if Virginia AGI is at least:

Single ........................................................................................ $ 11,950 MFJ............................................................................................ $ 23,900 MFS........................................................................................... $ 11,950

 

Learn more about the VA requirements here.

Level 1
Mar 18, 2020 3:34:51 PM

Thank you for your response. Under the reciprocity agreement between Washington, DC and Virginia/Maryland, do we need to file Virginia and Maryland returns if we live in DC? 

Expert Alumni
Mar 20, 2020 5:46:20 PM

No, under the reciprocity agreement, you only report/pay tax on wage income in your resident state- assuming that you had the correct tax withholding from your paycheck.  If you did not have DC tax withheld you would have to file a nonresident return to get the tax back from Virginia or Maryland OR file the nonresident tax on the income return and then claim a credit on the DC return. 

@shach94