I live in Pennsylvania and work in Maryland. My employer withheld PA taxes for state wages. Do I need to file a non-resident Maryland return and then file PA Return?

[re2boys · Accepted solution]

MD and PA have a reciprocal agreement where they will not tax the wages of a resident living in the opposite state.  So the only reason to file a MD non-resident return is if MD withheld state taxes and you need to request a refund.

This only applies to wages.  If you have self-employment income or rental income in MD, you are required to file a MD return.

Report ALL income on your PA return, regardless of where earned.

[colotom]

Where is this income input on PA return?

[re2boys]

Input all income on the federal return, it will transfer to the PA return if you are a PA resident, which is in the original question.

[colotom]

W-2 form from MD income had box 15 and 16 blank (no state or ID and no taxable income).  Income was exempt in MD, but taxable in PA thru reciprocal agreement.  The W-2 income did not flow thru to PA taxes in Turbo Tax until I put PA into box 15 (even though not on actual W-2).  Once I did this the federal income (box 1) flowed thru to PA calculations, when I confirmed it was not exempt from PA taxation.  My problem was different from the original question in this manner, just a spinoff.

[re2boys]

Please start another thread with all details and state of residence rather than tagging onto a two year old question and answer thread.  Thank you.