Live in VA, physically worked in MD for part of 2022, then switched to a remote job - how to file state tax return electronically?

[doumae]

Hi,

I have a question about completing my state tax return for 2022. I asked a question about this back in December (https://ttlc.intuit.com/community/state-taxes/discussion/live-in-va-physically-worked-in-md-for-part...) but that was about whether I needed to complete a MD state tax return or not. I have lived in VA since 2010. In early 2022, I commuted to my job in MD for the first few months of the year (Job A). I completed a MW507 form when I first started working for them in 2017. Then I switched to a remote job (Job B), which started in August. I have been working from home in VA since I left Job A. Now, the company/building for Job B is physically located in MD as well, but I believe Job B is considered VA income, since that is where I have been physically located (i.e., working remotely).

So, the complicated part - there are two W-2 forms I received - one for Job A and one for Job B. I am almost done with my state return on TurboTax but now it's telling me "On Form W-2 from [job in MD during first part of 2022], you entered Virginia withholding greater than 25% of Virginia wages. Please review your W-2 and change the incorrect entry. NOTE - You cannot file your Virginia return electronically if you have a W-2 with Virginia withholding greater than 25% of Virginia wages. You can, however, e-file your federal return in this situation." I am pretty confused about this. Is there a way for me to still submit my VA return electronically? For this Job A W-2, there is $ listed under VA state income tax, but not under MD state income tax (since I was never a resident there), and there is $ listed under MD state wages but $0 for VA wages. I don't know if TurboTax is just getting confused about this Job A W-2 because it sees that VA wages were $0 and yet there was $ withheld for VA. The odd thing is that I obviously did have VA wages in 2022 from Job B, since I work remotely now. But I don't know if TurboTax considers each W-2 separately.

What should I do?? Thanks so much in advance - I'm not a tax expert by any means. I'm just hoping I can still submit everything electronically.

[MaryK4 · Accepted solution]

The TurboTax error is definitely related specifically to the Job A W-2.  Because there is a reciprocal agreement between Virginia and Maryland, you can file and pay in your resident state if you work in the other state.  If the company withheld Virginia taxes for you, the wages should be associated with Virginia.  If it is showing the wages and withholding separately, you must contact your payroll department to see if it is correct- this is very important because what you see on your W-2 is what your employer reported to each state so it is highly unlikely it would have paid state withholding with no associated state wages.  

[doumae]

Hi MaryK4,

You are absolutely right. I just checked my W-2 forms for the past few years and box 15 only has VA listed. The W-2 form for Job A for 2022 has both MD and VA listed. I will speak to the payroll dept. at Job A and hopefully they can correct the error for me so my wages are considered VA income due to the MD & VA reciprocity agreement. Thank you so much!