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New Member
posted Mar 15, 2021 3:18:53 PM

work & own house in MD, but live in VA - can I file tax as VA resident?

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

0 3 1893
3 Replies
Employee Tax Expert
Mar 15, 2021 4:14:43 PM

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: 

  • They are present in the other state for 183 days or less during the year, and
  • Do not maintain an abode, such as a house or apartment, in their respective state and
  • Receive only wage or salary income in the other state.

Virginia Reciprocity

New Member
Mar 15, 2021 6:17:45 PM

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!

Expert Alumni
Mar 16, 2021 10:51:45 AM

If you are saying you have not moved to VA as of 2020, you will file only the MD tax return. Beginning in 2021, if you move to VA, regardless of where your home is, VA will be your resident state when you move in with your in-laws.