Live in NC and work MD

Forum|Forum|1 year ago
January 18, 2025
1 reply
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I moved to NC and my HQ is in MD, my employer deducted taxes to MD? What can I do?

ItsDeductible Online

Hal_Al

Employee

Q. What can I do?

A1. Claim a refund when you file your non-resident MD return (or part year resident return if you move took place in 2024).

A2. Going forward, ask your employer to stop withholding MD tax. They may be unwilling to withheld NC tax. If so, you will need to make quarterly estimated payments to NC.

You are not subject to MD tax just because your employer is headquartered there. If you occasionally go to MD, you are technically subject to MD tax on those days you physically work in MD. But, NC will give you a credit for any tax you pay to MD (so many people just don't bother with it).

TomD8

Employee

If you moved from MD to NC during 2024, then you must file a part-year resident tax return in each of the two states. This TurboTax help article explains how to do that:

How do I file a part-year state return?

As @Hal_Al explained, your employer's location has no bearing on your state tax obligations. Your state tax obligations are determined by where you live and where you physically perform your work.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.