MD and PA taxes

Forum|Forum|2 years ago
March 11, 2024
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My wife and I both work at a hospital in PA but live in Maryland. We are not employees of the hospital in PA since we work through an agency, we are contractual employees through our agency. Our W2 lists the state as MD in Box 15. When filing our taxes, do I need to click "yes, we made money in a state other than Maryland"? I understand that later I can change my taxable income for PA to "$0." However, by clicking this box, turbo tax says that I need to send copies of my 1099-R and also pay taxes on capital gains that I have through stock accounts to PA. My question is this, do I need to report that I "made money in a state other than Maryland" if our W-2's say MD, there is reciprocity, and no document that I have actually has PA listed anywhere on it?

DianeW777

No, do not check the box saying you made money in another state. Maryland (MD) and Pennsylvania (PA) have a reciprocal agreement and you have no PA withholdings on your W-2.

Do not file a return for PA.

PA Nonresident Filing Requirement with Reciprocal Agreement:

PA has reciprocal tax agreements with Indiana, Maryland, New Jersey, Ohio, Virginia and West Virginia. Under these agreements, one state will not tax a resident of the other state on compensation subject to employer withholding.

File your resident return claiming all of your worldwide income.

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