Maryland and DC have a tax reciprocity agreement, so you will need to file both MD and DC tax returns to get your son's money back.
He must file a Maryland return to get a full refund of those withholdings (Maryland Form 505 Nonresident Income Tax Return).
Since he lived in DC for part of the year (DC Form D-40 Part-Year Resident), he owes DC taxes on all income earned while he was a resident there (including money he earned working in Maryland);.
And since Florida has no state income tax, he does not need to file a Florida state return.
- Open or continue your return.
- Under Personal Info section, Enter your current state of residence (FL), but that you also lived in DC (you will need the date that you moved to FL).
- Complete the Federal return entirely. (Add DC and Maryland state tax returns, if not already added.)
- Prepare the Nonresident tax return first (MD)... then the DC part-year resident return (the program will ask for the dates he lived there. Make sure you only include the income earned during that window). The home state (resident) usually taxes all your income, but provides a credit for taxes paid to the nonresident state.
- When doing the Maryland nonresident return, look for a screen that asks about Reciprocal States (select that he was a resident of DC).
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