I work in maryland and live in virginia. maryland takes state tax. how is this covered when filing?

should I file state taxes for maryland since they deducted my income even though I live in virginia?
  • Yes. You have to file a tax return for every state (where required) that you received income from. You will probably be filing a non-resident (NR) return, but consult the Maryland tax website or have turbotax figure this out for you. TT does a good job!
  • I live in MD and work in VA, and my employer withholds MD income tax. Do I need to file in VA, or just in MD?
One thing that you need to consider is reciprocal state agreement between MD and VA. Here is how it works.

If you live in VA but work in MD, then you don't have to pay taxes to MD. However, if your employer withholds MD taxes, then  you will have to file a tax return in MD in order to get those funds refunded.

In order to avoid having your employer withhold MD taxes going forward, you should provide your employer with an exemption form called Form MW507. You can find it at this link below.

  • I have a similar question. I live in VA, but work in MD. My employer does not withhold any state taxes because I am a non-resident. BUT, do I have to pay VA state taxes???
  • yes
  • Mr. TaxPro,

    I work in MD and live in VA.  My employer does NOT withhold MD taxes from my pay.  Do I have to file a return for MD?

I work in Maryland and live in Virginia. I am filing my taxes now. When all the numbers were calculated, it said I owe Maryland money. Why is that??? I thought that under this reciprocal agreement, I didn't owe any money. Nothing was taken out of my check throughout the year, and now it seems like I have to pay it all at once. Why is that??? 

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