Question

Remote Worker taxed by two states

Forum|Forum|4 years ago
January 30, 2022
1 reply
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Hi, I live and work remotely in Maryland but the company I work for is in Kentucky. Neither of these states have any State Reciprocity Agreements or are apart of the Convenience of the Employer rule so it is my understanding that my only state income tax should be Maryland,

I'm looking at my W2 and my Paystubs for last year and I was being taxed for both KY and Maryland. How do I report this when I do my taxes this year?

DMarkM1

You will be filing a resident return for MD who will be taxing all income from all sources. You will file non-resident KY who will tax the income earned from the KY source. You can get a credit on your MD return for taxes paid to another state in this case KY. You will see the opportunity to claim the credit in the credit section of your MD return.

NOTE: Be sure to complete the KY state return before the MD return. You will need the tax paid to KY and the income taxed by KY in order to complete the MD credit interview.

In the "My Info" section indicate your resident state is MD and you did not live in another state. In the other state income topic also in "My Info" you will indicate you earned money from another state, KY.

Then, in the "Income" tab, enter your W2 information from your form.

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