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Reciprocity State Live in PA and having MD tax taken out

Having issues with getting info inputted correctly to get refund from MD. I live in PA and work in Md. I was taxed for both states. Under the Federal section, I put in full amount for PA state and did not put anything for MD. I then opened a MD state return (I was told to do nonresident state first).  For the MD return under line 17 for non-Maryland income, it is still showing adjusted gross income from my federal return even though I did not put any income for MD when filling out federal. Need help as I am sure it is user error. It does not ask how much MD tax was taken out?

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5 Replies
Vanessa A
Employee Tax Expert

Reciprocity State Live in PA and having MD tax taken out

In the federal section, when entering your W2, you will need to enter Maryland state income in box 16 and then the taxes withheld in box 17. This will populate a MD return with the info from your W2.

 

To do this select the following:

  • Federal
  • Wages and Income
  • Edit next to your W2
  • click continue to get to the part where you enter your numbers
  • Under the state tax section click add another state
  • Enter MD as the state, enter the state ID then enter the state wages and income tax.  
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Reciprocity State Live in PA and having MD tax taken out

Thank you. But now my PA wages is showing double the amount for taxable income. It appears to be adding my PA total wages which I was told to put in the full amount(whether earned in PA or MD) along with MD total income. Now PA total wages is showing double? Do I adjust my PA wages?

TeresaM
Expert Alumni

Reciprocity State Live in PA and having MD tax taken out

You should have the same numbers that are on your Form W-2 entered in TurboTax
 

If this is in the TurboTax Online version, when state returns have had changes, sometimes it is best to delete them and get a fresh import from the completed Federal Return. 

 

  1. First, please check My Info in the Federal return and be sure the box is checked for Made money in another state
  2. Then go to the States section and click on the delete icon for both Maryland and Pennsylvania
  3. Then, add Maryland first,  and be sure it is a Non-Resident state and complete it  
  4. Next, add Pennsylvania and be sure it is a Resident State   

This should prompt the allotment of income in both states, and allow you to enter the taxes paid in Maryland into the Pennsylvania return. 

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Reciprocity State Live in PA and having MD tax taken out

It is still doubling my wages . Basically saying I earned the same amount in both states. So PA shows twice, hence taking out twice the tax rate??

Just to confirm, How do you get to the "delete icon" I went to Remove file  under file . it said to "remove state file"-.*33 Is that what you are referring to?

ErnieS0
Expert Alumni

Reciprocity State Live in PA and having MD tax taken out

There are two steps to fix your situation. 

 

  1. Exclude your Maryland wages in the Pennsylvania section, and
  2. Subtract all your income in Maryland as Non-Maryland income to get a full refund of MD tax withheld.

In Pennsylvania, on the screen “Compensation Summary,” tap Edit on your MD wages.

 

On “Verify this income,” select Entire amount of this income is not taxable in PA.

 

 

In Maryland, on the screen “Maryland Wage Income” change the amount to $0.

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