MD/VA reciprocity question

Forum|Forum|3 years ago
January 27, 2023
1 reply
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Super confused by the tax reciprocity rules. Here's my situation:

Jan-April 2022: Worked and lived in MD
April-July 2022: Worked in VA lived in MD, so should only have been taxed in MD, but forgot to submit VA-4 early on so I got taxed in both for a couple of paychecks before I corrected this.

July*-Dec 2022: Worked and lived in VA

*July 18 move date to end of year is < 183 days

Sounds like I should file VA as part-year resident and MD as regular resident, but do I get a refund on the extra VA taxes I paid when I first changed jobs, and how?

Best answer by DawnC

You are a part-year resident of both states, MD and VA. So, file both states as a part-year resident, based on your move date, July 18. You will also need to file a nonresident return for VA for the period April–July 18. Prepare the nonresident return first, so that any tax paid to VA for that time can be credited to your MD resident return.

Why would I have to file a nonresident state return?

You have to allocate your income (based on where you lived at the time you earned the wages) when you file part-year state returns, so you will be able to allocate your wages to the correct state when you prepare those returns. The 2 links below will provide direction on preparing the returns and allocating your income.

How do I file if I moved to a different state last year? - See scenario #2

How do I allocate (split) income for a part-year state return?