Why am I being taxed by dc if I live in md and I work from home?

[Aimee-O]

Hi Eric!

Great question!  

Assuming you lived in MD all year, and your employer is DC based, then you will want to contact your HR department to correct your withholdings.  DC is  a reciprocal state.    It other words you will only pay tax in the state you live in, not the state your work in or you employer is located.  It appears that your employer already withheld DC taxes, so you will want to file a nonresident DC tax return for 2023 to get all your withholdings back for DC.  Keep in mind MD will tax you for those earnings.

You can complete this form and submit to your employer to correct your withholdings.
Form D-4A 

[Holly W1]

Hello @ericlynnsr1 

The way I am reading your question is, you live in MD and work from home and being taxed by DC?  Is the employer located in DC?  

MD & DC are reciprocity states.  A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
You may should be having MD taxes withheld if that is your resident state.  If they are withholding DC Taxes, you may need to fill out this form:  https://otr.cfo.dc.gov/sites/default/files/dc/sites/otr/publication/attachments/2018%20D-4A.pdf , and give it to your HR Department.
If the employer has been withholding DC Taxes, you may want to file a DC tax return as a non resident to get those withholdings back.
Here is an article that may be helpful:  https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/states-reciprocal-agreements... 

Please let me know if you have any further questions, I will be happy to help!

Cheers,

Holly W