Live in virginia work in maryland

[dcprice0311]

do I just place 0 for my income?

[DS30]

You will only need to file a VA resident state income tax return to report all income (including your MD -source wages). You will not have to file an MD nonresident state income tax return (unless you had MD withholdings (see below)).

VA and MD have what is called a state reciprocal agreement. This allows nonresidents to not have state withholding taxes taken out for wages earned in the state.

Since you will not have an MD state income tax filing, just check that you selected "no" to " Did you make money in any other states?" under the Personal Information section in TurboTax (see screenshots)

You can get rid of a state without clearing your federal return by just deleting the state from your list of states under the "State Taxes" tab.

Please note that you will not have a delete option until you actually start working on the state. Select that you want to start the state return under the state taxes tab. The system will start calculating. Then go back into the state tab at the top of the screen and you should now get a choice for that state to either continue or delete. You won't be charged for just starting the state return. You would only be charged (if applicable) when you are getting ready to file.

In order to get the full refund of your MD state income tax withholdings, you will need to file a nonresident MD return but report zero "0" income from MD (even though you do have MD wage income). You need to file your MD return this way because VA does not allow a credit for tax paid to a reciprocal state on wages, salaries and commissions. If tax was withheld by a reciprocal state (MD), you must file directly with the state for a refund of those taxes. You must mail in this PA nonresident state income tax return and include your state W-2 information. You will want to include an explanatory statement with your MD return stating your situation (that your MD employer withheld MD taxes from your wages in error due to a reciprocal agreement with VA).

[mcchiarella]

I am a Virginia resident who worked in Maryland (two different, temporary jobs) last year.

I filled out the withholding forms incorrectly for the first job, and had taxes withheld in Maryland. I filled out the forms correctly for the second job, and had taxes withheld in Virginia (even though the job was based in Maryland).

I understand that, because of reciprocity agreements that I should list my "Wages From Maryland Sources" as 0. But I'm stumped as to what to list in the Non-Maryland "Interest Income" and "Adjustments to Income" boxes.

Any thoughts and any help appreciated.

[DS30]

Just report 0 for wages and list all non-MD allocations as the full amounts so that no income is taxed in MD.

[hardx]

Question:

If we file nonresident MD return to get a full refund so we can payback to VA when we file MJF with (1) VA withholding?

Will we pay income tax again on a full refund from MD for next year? 

[DaveF1006]

You might not receive a full refund for filing your MD non-resident return. For your convenience, i have included this link to MARYLAND 2019 NONRESIDENT TAX information. Starting on page 19 of the booklet, the tax tables will tell you what the tax is based on your taxable income for MD. From the tax amount, you can subtract the twax withheld to give you idea what your tax refund will be. 

When you begin your state returns, do the Maryland non-resident state first and then your Va state return. That way, you will be given credit for the taxes you paid to Maryland.  Usually, but not always, the amounts will offset where you receive a refund in one state and owe tax in another. 

To avoid having Maryland withhold Maryland taxes from your check, You need to file a MW507 with your employer so that they will withhold Va taxes and not Maryland. Here is a link for you to download, fill out, and submit to your employer so they can start withholding Va taxes not Maryland's taxes.

[hardx]

I used Turbo Tax to file nonresident MD returns and got a full refund back.

I did change MD to Va tax withholding early this year.

[KathrynG3]

Yes. This is the best way to handle your withholding. As your state of residence, Virginia will tax your Maryland wages.

[sujan00]

I have a situation, hoping that you will be able to help me out. I live in VA and work in MD. For 206-17 my tax was paid to VA, but I am not sure how, 2018 onward its taken out to MD.

When I was doing Tax return for 2018 (I did it in January 2020 (yes one year late since I always get refund, i file it late). But this time I noticed that Turbotax is telling me that VA State tax is due for 2018. (Turbotax dd not suggest filling a second state for me). I looked through the forms and noticed that it did not enter the state tax that I paid (MD tax). I manually entered the state tax that I paid (paid to MD) and was able to claim a refund. I mailed it in (Still havent received a response). Is it the wrong thing to do? How do I correct it?

I am doing 2019 Return now and this time turbotax completed my VA return and is now asking me to do non resident MD return. Do I have to buy a second state (MD) and complete it (looks like it costs 48$)? I noticed some people said income should be 0 for MD. 

[BillM223]

First, please read this Virginia webpage about your situation. "Virginia Residents who:...Work in Maryland, Pennsylvania, or West Virginia, are exempt from taxation in their respective state if:...Receive only wage or salary income in the other state." That sounds like you, right?

Read further on down:

"

Virginia residents:

If you accept employment in a reciprocity state and meet the criteria for exemption, ask your employer to withhold Virginia tax. If your employer will not withhold Virginia tax, ask that no tax be withheld. You must then make estimated tax payments to Virginia.

If your employer withholds tax for the other state and you find out that you are exempt, correct your information with your employer for the future, and contact the other state to find out how to file for a refund.

"

So,

1. ask your employer to stop withholding for Maryland and start withholding for Virtgina.

2. For any year in which Maryland tax was withheld, file a non-resident Maryland return with a state income of zero. This will force your Maryland withholding to be refunded to you.

3. You can do this now for 2019, but you will need to amend 2018.

4. You have to do this because, unlike nonreciprocity state, Virginia will not let you deduct taxes paid to Maryland in your situation. You have to make sure that the income and the taxes are for Virginia.

Please look at the posts above and especially at the remark about form MW507.