If I have double taxed income, how do I know how much, Maryland and DC

[Anonymous_]

I will page @TomD8 to see if he has any input. 

[SteamTrain]

But before anyone can answer.....need to know answers to the following three questions

1)  Which did you actually live in at the end of 2022 ?

2) Did you actually move your residence from one to the other during 2022 ?

3)  If you didn't move from one-to-the other during 2022, which one(s) did you actually work in as a W-2 employee.

4)  Which ?  (MD or DC or both) was tax withholding $$ listed for your W-2 form.  (or forms if you had multiple employers)

[aldenta1]

1)  Which did you actually live in at the end of 2022 ? I lived in DC all year, but I worked in MD.

2) Did you actually move your residence from one to the other during 2022 ? I did move during 2022 but not to a new state 

3)  If you didn't move from one-to-the other during 2022, which one(s) did you actually work in as a W-2 employee. MD

4)  Which ?  (MD or DC or both) was tax withholding $$ listed for your W-2 form.  (or forms if you had multiple employers) Both in box 16 but only DC in box 17

I hope this additional info helps!

[SteamTrain]

OK,here's the situation for you, since you lived as a resident in DC all year.

DC and MD have a reciprocal tax agreement, whereby DC residents working W2 jobs in MD will only owe/pay DC taxes.  Conversely, MD residents working a W2 job in DC will only owe/pay MD taxes.

As such, you owe MD nothing on your wages for working there.....and your W-2, properly, does show no MD withholding.

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Problem I see is that your W-2 has a MD listed line (Box 15 correct?) with MD wages in box 16...and (my opinion) that shouldn't be on your W-2 at all...only a DC wages line for boxes 15,16,17.

Presuming you filed a MD form MW507 with the MD employer declaring yourself a DC resident,  You shouldn't have to file a MD tax return at all for that job, but your first step would be to go to your employer payroll people and see if they will issue a corrected W-2 (called a W-2c) showing only DC wages in the state line. Then file your DC tax return when you receive that W-2C 

(and you do not indicate that you worked in another state on the My Info page....all that income is treated as-if you only worked in DC)

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If they won't prepare a W-2C, it's tough to know exactly how to proceed.   

Options:

1) File a Federal and DC tax return, ignoring the MD line altogether  (not putting MD line in the software W-2 form)...and suspecting MD will ignore any form they get from the employer...knowing or realizing you are a DC resident.

or

2)  Filing a MD non-resident tax return anyhow, but declaring zero MD income, and no taxes due since you are a DC resident.  (normally, this is only done by DC residents if they happened to have MD taxes withheld by accident).

or

3) seek local professional help for this issue.

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Personally, if I couldn't get a W-2c from the employer with the MD line taken out...I'd go with option #1, then if MD ever comes back with questions about not filing...I'd let them know I was a full year DC resident that year, with saved proof...like rent agreement copies, or utility bills for the year...or property tax forms for residence(s) there.

But that's just me.

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Perhaps someone here in the Forum knows better.