We live in Virginia and received a Form 502 Schedule VK-1 for Virginia and a Maryland Form 510 Schedule K-1 for Maryland. Do we need to file taxes in both Va and Md?

[woconnor7756]

My wife and I l have lived in Virginia throughout 2018.  She received a form 502 Schedule VK-1 for Virginia and a Maryland Form 510 K-1 for the state of Maryland.  No taxes were withheld in Maryland.  Do we need to file taxes in both states?  If so, does only her K-1 income get reported in Maryland or does her other wages get included as well?

[TerryA]

Maryland is entitled to tax any of your income that is sourced there (interest <generally> and dividend income are exceptions). Income that was not earned in MD is not taxable by MD. In your nonresident TT/MD return you will have the opportunity to allocate your income items between MD-income and Non-MD income.

VA & MD have a reciprocal agreement whereby they do not tax the wages of each other's residents. i.e. MD cannot tax any wages you may have earned while working in MD.