THE DMV.

[MightyBright]

I worked and lived in VA until June 22. I moved July 22 to DC and work in DC, HOWEVER, my W2 from new employer claims Maryland. OMG. I thought there was reciprocal thing between these states, HOWEVER, it wants me to file THREE (3) STATEs (MD, VA and DC) at $40 each? Please HELP!

[SharonD007]

There’s no way to get around filing state returns for the three states.  You will need to file part-year resident tax returns for both VA and DC since you had income in those states along with a non-resident tax return for MD since they withheld state taxes. If you decide not to file a tax return for MD, you will not be able to get the refund of taxes that were withheld from your paycheck.

Make sure that you prepared your VA tax return first, then your DC tax return.  Please review the following TurboTax Help articles on How do I file a part-year state return? and How do I allocate (split) income for a part-year state return? for further details.

You can also get additional information from these TurboTax articles If I Moved, How Do I File Taxes in Multiple States? and Multiple States - Where To File? 

[SteamTrain]

AND...if you really live in DC, you need to make sure your employer's HR/Payroll Department knows that, and you file whatever DC/State withholding forms required to have only DC taxes withheld.  

For 2022, you could not have avoided filing VA and DC Part-Year tax returns, but it sounds like the MD taxes should never have been withheld if your proper DC/State withholding forms had been provided to the employer when you moved.  Could have been a Payroll screwup too, but it won't get fixed if you don't actively change it with yoru HR/Payroll department.

[MightyBright]

So the company's address on the W2 is for MD, however, the company is located in DC. I rechecked the W2 and ONLY DC taxes were taken out. However, the TT program is saying I need to file with MD too. I cannot finish out my filings until I purchase the MD state form for non resident it says. However, I received no income from MD, Only DC. Does this make sense? I'm about to buy the MD state form, so please reply asap. Thank you.

[MightyBright]

The thing is there was no income earned in MD. My W2 as well as my current paystubs only take out DC taxes. The company address on the W2 is the only thing from MD. However TT program will not let me proceed with the VA and DC part year resident state returns and my federal unless I buy and download the MD state program. Why? I don't understand.

[SteamTrain]

@MightyBright 

NO...You don't need MD at all.

1)  Perhaps on the My Info section, you indicated that you worked in another state (MD)...don't do that (If you did)

2) ...or...perhaps you somehow included MD on one of the state lines for boxes 15-to-17?  Shouldn't be there if no MD wages or withholding was done.

The company address on the form is immaterial...some folks working in DC could have company Corporate addresses, in CA or OH, or IL...etc.....that doesn't mean they are taxed by those other states if they didn't actually go there to work.