State Taxes

[b405192]

I live and work in Virginia full-time. I telework daily while my employer is based in Maryland. Why do I have to pay Maryland State Income Tax in addition to Virginia State Income Tax? I do not commute to Maryland for work at anytime.

[SteamTrain]

You don't pay MD taxes  (as long as you are a W-2 employee)

The employer should only be withholding VA taxes.

Not only are you not physically working in MD, but MD and VA also have a reciprocal tax agreement, whereby cross-border workers are only taxed by their state of residence.

So,

1)  did the employer actually withhold any MD taxes?

OR.

2)...is it just your software that has the MD forms in it, because you mistakenly indicated that you worked in another state ( MD )?

[TomD8]

And IF your employer is mistakenly withholding MD taxes, file MD Form MW507 with them as soon as possible, checking the appropriate box on line 4:

https://www.marylandtaxes.gov/forms/current_forms/mw507.pdf 

[b405192]

Either Turbo Tax factored in my employer's state of Maryland or I made a mistake and answered a question incorrectly. Either way, because of that I'm deemed as owing taxes in Maryland so I assume I need to amend my taxes some how.

[TomD8]

Does your W-2 show any Maryland taxes withheld?  If so, you should file a non-resident MD tax return on which you declare zero MD income, in order to have those taxes refunded.

If there are no MD taxes withheld on your W-2, then in the Personal Info section of TT answer NO to the question about earning money in another state.

[SteamTrain]

@b405192 

It depends on what you've actually done so far.

Talking about 2022 taxes....

1)  If you've already e-filed Fed, VA and MD, and e-filed and already paid MD taxes too, then yes, you would need to amend yoru MD state taxes to indicate zero MD income to get all your withholding...or final MD payments back.

2)  If you haven't actually filed anything, then you will now have to mail in your Federal and VA taxes anyhow, and just delete (if you can) or ignore the MD forms.

3)  BUT, in any case, in your VA forms you also need to make sure that you haven't taken a credit for taxes paid to MD....because any taxes paid to MD aren't allowed, since VA expects you to get them refunded from MD, since MD taxes were not due in the first place.

______

How/Why did TTX include MD tax forms?

Two possible ways:

a)  During the information input of your personal information, you mistakenly indicate that you worked in another state during 2022, and indicated MD as that state

or

2) Your  W-2 form had "MD" in box 15 for one line in the state section of that W-2....and possibly some "income" or MD withholding.   IF there was MD withholding, then you DO need to file a MD tax return, but indicate that you had zero income in MD.   SO....what's on the states lines for boxes 15,16,17 of yoru W-2?   (should only be VA with VA income and withholding.....unless you failed to submit the form MW 507 to that employer indicating you lived in VA and were thus exempt from MD withholding)

[b405192]

Box 15,16, and 17 have VA not Maryland.

[SteamTrain]

Then we're back to:

1) if you e-filed Fed, VA and MD already, and had MD forms accepted...and paid MD,  Then you need to Amend yoru MD non-resident tax return and indicate zero MD income, to get your payment refunded.

2) if you haven't filed MD yet....just have the forms filled out.  Then you don't send them in (MD forms)....you just have Fed & VA to file  (By mail on paper at this point in time).   Just make sure you aren't attempting to claim a credit for taxes paid to MD on your VA tax return.

[b405192]

I e-filed Fed, VA, and MD already, and had both MD  and VA forms accepted but I have not paid what Turbo Tax says I owe to MD.