I work in and pay taxes in the state of Maryland but reside in PA and it wont a give me a full refund.

Forum|Forum|2 years ago
February 2, 2024
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I work and pay taxes in the state of Maryland, but I reside in PA. My employer is the State of Maryland and will not allow me to pay into PA, so I claim 0 and have Maryland taxes taken out to use to pay into PA. It helps with not getting hammered with a large tax bill at the end of the year when I file in PA. When I file Nonresident through TurboTax it has shorted my Maryland return 2 years in a row for about $300 and I cannot figure out why. Example I'm paying in $6000 and when I complete the state portion it says my return is $5800. I'm at a loss trying to figure this out and google isn't helping so any information would be very much appreciated.

TurboTax Deluxe Online

AmyC

Employee

Let's start at the beginning. You enter the MD return and nonresident. When it asks for MD wage, you enter zero. Then for Non-Maryland income Allocation 3500, you enter the full amount in every column to match the federal. When you look at the MD tax return, you should see zero wages with your full refund of tax paid in. Is this what you are seeing?

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MD Nonresident instructions

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Zachary0301Author

First off thank you so much for the help and response. I searched last year and could not find out why they were withholding money and this year I couldn't figure it out, so thank you so much. I did have 0 from wages on the form 505, where the money is being deducted is on line 42 Maryland tax after credit. Are they possibly charging me a percentage to withhold money (claim 0) since I live in PA and don't pay into Maryland? I was under the impression that they are reciprocating states.

DianeW777

Yes, Maryland (MD) is a reciprocal state for Pennsylvania (PA). Enter the W-2 as it is however made sure all of your wages are taxed to PA.. If there is no MD withholding, then you do not need to file the MD return. File all wages to PA and enter only PA withholding as shown on your W-2.

You must obtain a refund from MD and pay the necessary tax to PA including all income ONLY if there is MD tax withheld.

Reciprocity:

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.