I'll be moving to VA (to live with my in-laws) soon, but I work in MD and own a home in MD as well.
So I'll be living in VA, but since I own a home in MD (I don't plan to rent it out yet, so it'll just be empty and I'll be paying monthly mortgage and property taxes), can I only pay VA taxes? Or does the fact that I own a property in MD prohibit me from doing this?
Thank you
It depends on the time spent in the state. For 2020, it sounds like you would only need to file a resident return for Maryland since you stated you "will be" moving to Virginia.
In 2021, you will likely file a part-year return for Virginia and a part-year return for Maryland.
For years thereafter, you should only have to file a Virginia return (as long as you do not withhold Maryland state tax on Maryland wages). Virginia and Maryland have a reciprocal agreement, which states that Virginia residents who have a limited presence in reciprocal states (such as Maryland) to be taxed only by Virginia. Simply owning a house in a reciprocal state does not mean you have to file a return for that state.
Per the State of Virginia, if you are a resident and work in Maryland, Pennsylvania, or West Virginia, you exempt from taxation in the respective state if you meet all of the three following criteria:
Thank you for such detailed answer!
Only thing that I'm confused on is the "Do not maintain an abode, such as a house...".
If I'm not living in the house (maybe sometimes over the weekend here and there, but definitely less than 183 days a years), is that not considered an "abode" and I don't have to pay MD taxes??
Thanks again for such helpful reply!