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New Member
posted Jun 1, 2019 10:08:20 AM

The VA and MD reciprocal agreement did not get flagged in TurboTax. Now VA says I owe 2015 back taxes. What do I do? Can I get taxes back from MD?

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1 Best answer
Intuit Alumni
Jun 1, 2019 10:08:24 AM

If you live in VA and earn wages in MD, and that is your only income from MD, then you should not have to file an MD return at all unless you had MD tax withheld in error by your employer. So, yes, you can file amended return(s) with MD claiming no MD income so you can get all of the taxes back as a refund. VA gets to tax all of your income regardless of source since you are a resident there.

Note that in when completing the TT personal info section and it asks if you "..earned money in any other state?" it sees that you are a VA resident and warns you on that screen to not to select Yes and pick any reciprocal state, of which MD is one, as a state you earned money in if it was only wages. So you did get the warning ("flagged") but TT cannot prevent you from filing a nonresident MD return if that's what you really want.

5 Replies
Expert Alumni
Jun 1, 2019 10:08:21 AM

Have you already filed or are you still in the preparation phase?

New Member
Jun 1, 2019 10:08:22 AM

This came in a letter addressing 2015 taxes so yes already filed.

Intuit Alumni
Jun 1, 2019 10:08:24 AM

If you live in VA and earn wages in MD, and that is your only income from MD, then you should not have to file an MD return at all unless you had MD tax withheld in error by your employer. So, yes, you can file amended return(s) with MD claiming no MD income so you can get all of the taxes back as a refund. VA gets to tax all of your income regardless of source since you are a resident there.

Note that in when completing the TT personal info section and it asks if you "..earned money in any other state?" it sees that you are a VA resident and warns you on that screen to not to select Yes and pick any reciprocal state, of which MD is one, as a state you earned money in if it was only wages. So you did get the warning ("flagged") but TT cannot prevent you from filing a nonresident MD return if that's what you really want.

New Member
Jun 1, 2019 10:08:24 AM

Thank you that was very helpful!! I feel like some of this should have been taught in high school. I paid VA the back taxes. Now I need to refile in M.D. to get those taxes back. Thank you so much for your help!

Level 1
Dec 23, 2020 12:02:34 PM

Your reply helped me understand my problem with non-resident rental income.  I couldn't understand why TT had not flagged this when it was brought to my attention recently, but I didn't realize I had checked "No" to income in another state at the very beginning of my return info. I will have to file amended returns.