Virginia special non-resident claim for individual income tax withheld (form 763S)

[jn647]

I live in Maryland, but work for a Virginia based employer (have been with this employer for the past five years, W2 job, and have lived in Maryland the entire time).

When I went to file my return on Turbo Tax, I received the following message for being unable to e-file my Virginia return:

"The return includes Form 763S, Virginia Special Non-Resident claim for Individual Income Tax Withheld."

In going through my previous years returns, I've never had to file Form 763S.

My tax situation hasn't changed from previous years; is there a reason that I'm being asked to file form 763S?

[JotikaT2]

It depends.

Maryland and Virginia are reciprocal states.  This means that your wages paid in Virginia are treated as if you earned them in Maryland and are only taxed within your resident state.

You may need to review your input in TurboTax to ensure you have answered all of the questions correctly.

To do this, log back into TurboTax and select My Info to review your answers under the Other state income section.  Be sure to mark this answer with "No, we didn't make money in any other states."  

Since you reside in a state that has reciprocity with the state you work in, you only need to file one tax return for the state you live in.  (This is assuming your employer only reports Maryland as the state wages in boxes 15-17 of your W-2 form as well.)  

If your W-2 form is showing Virginia as the state wages, then you would need to file a Virginia nonresident return to get a refund for any taxes withheld incorrectly.  If this is the situation, you would need to mark yes on the screen shown above to indicate "Yes, we made money in states other than Maryland."