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November 16, 2023
Question

State Taxes

  • November 16, 2023
  • 1 reply
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I live and work in Virginia full-time. I telework daily while my employer is based in Maryland. Why do I have to pay Maryland State Income Tax in addition to Virginia State Income Tax? I do not commute to Maryland for work at anytime.

    1 reply

    SteamTrain
    Employee
    November 16, 2023

    You don't pay MD taxes  (as long as you are a W-2 employee)

    The employer should only be withholding VA taxes.

     

    Not only are you not physically working in MD, but MD and VA also have a reciprocal tax agreement, whereby cross-border workers are only taxed by their state of residence.

     

    So,

    1)  did the employer actually withhold any MD taxes?

    OR.

    2)...is it just your software that has the MD forms in it, because you mistakenly indicated that you worked in another state ( MD )?

    ____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
    Employee
    November 16, 2023

    And IF your employer is mistakenly withholding MD taxes, file MD Form MW507 with them as soon as possible, checking the appropriate box on line 4:

    https://www.marylandtaxes.gov/forms/current_forms/mw507.pdf 

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.
    b405192Author
    November 17, 2023

    Either Turbo Tax factored in my employer's state of Maryland or I made a mistake and answered a question incorrectly. Either way, because of that I'm deemed as owing taxes in Maryland so I assume I need to amend my taxes some how.