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auyonrahman
New Member

My wife and I both work in DC but live in MD. However, for the past 3 years, she ended up paying both DC and MD taxes by mistake. How can we recoup the DC taxes we paid?

The payroll company (ADP) at her work had her listed as paying taxes to DC (so presumably taxes which were withheld from her paycheck went towards paying DC taxes). However, when filing taxes for us jointly with MD as our taxable domicile, I think it showed that we had all the MD taxes (for her portion) due since the withheld taxes did not go towards that. She has since fixed this on ADP, but we are trying to see if we can recoup that DC payment as she may have paid taxes in both MD and DC.
3 Replies
Opus 17
Level 15

My wife and I both work in DC but live in MD. However, for the past 3 years, she ended up paying both DC and MD taxes by mistake. How can we recoup the DC taxes we paid?

In general, you are only required to file a tax return and pay taxes where you are a resident.  Since you are residents of MD, but had tax withheld in DC, your wife should have filed a form DC-40B non-resident request for refund.   And in fact, if she had DC taxes withheld in 2022 (before you fixed it), she should file a D-40B instead of filing a full year DC return.  See page 7 here.

https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/52926_D-40_12.21.21_...

 

https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2021_D-40B.pdf

 

The problem is for past years.  Did you ever file a DC return for 2021, 2020, etc. either as a resident or non-resident?  Or did you just let the DC withholding evaporate?

 

If you filed a DC resident or non-resident return, you would have to file amended returns showing zero DC-taxable income and claiming a refund.   If you never filed at all, then she would file a D-40B for each past year where she had withholding but was a non-resident.  You will have to look for the correct prior year forms on the DC tax web site.

 

Turbotax can't e-file form D-40B.  You will have to print and mail it.  A paid professional might be able to e-file the form, but ask before you pay any money so your money isn't wasted.  It might not be e-filable at all, since you have to attach certain proofs.

 

My guess is that DC uses the same 3 year statute of limitations for refunds.  So a D-40B claim for refund for 2018, which was due April 15, 2019, will now be more than 3 years overdue and no refund would be paid.  But tax years 2019, 2020 and 2021 are within that 3 year deadline.  

 

 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
rjs
Level 15
Level 15

My wife and I both work in DC but live in MD. However, for the past 3 years, she ended up paying both DC and MD taxes by mistake. How can we recoup the DC taxes we paid?


@auyonrahman wrote:
presumably taxes which were withheld from her paycheck went towards paying DC taxes

Don't presume. Her W-2 shows where the withheld tax went. Does box 15 on her W-2 say DC,  or does it say MD, or something else?

 

auyonrahman
New Member

My wife and I both work in DC but live in MD. However, for the past 3 years, she ended up paying both DC and MD taxes by mistake. How can we recoup the DC taxes we paid?

It says DC

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