Telecommuted for Maryland Employer, do I owe state tax?

[cl9]

I moved from MD to WA in 2018 and continued to work for my MD employer through 2019, remotely.  I did travel to MD and worked onsite for 40 days during 2019.  My employer withheld states taxes.  Do I owe state tax for all of my MD compensation or an allotment of it based on onsite days?

[MarilynG1 · Accepted solution]

Since you were a Resident of Washington for all of 2019, you would not owe Maryland tax because your employer is located there.

However, you should file a Non-Resident Return to Maryland since you paid MD taxes.  

Since you were not a Resident, you should get your tax paid refunded to you.  

The required onsite visit does not count as Residency.

Click this link for more info on How to File a Non-Resident Return. 

[cl9]

I located the following in the Maryland nonresident tax booklet, "If you are a nonresident who works in Maryland and/or derives other income from a Maryland source, you are subject to Maryland's income tax rates as well as the special nonresident tax rate of 1.75%.  So it appears that I do owe Maryland state tax.  Do you have a different resource that overrides this?

[MarilynG1]

You don't work in Maryland; you work in Washington.  Your employer is located in Maryland.

[cl9]

Thank you Marilyn!

[MarilynG1]

My pleasure!

If you still work for the same employer, since you live in Washington with no state income tax, ask them to stop witholding any state tax for you.