Anonymous asked in Business & FinanceTaxesUnited States · 2 months ago

CPA advice! I work in Maryland but live in Virginia?

I don't really know how to go about my taxes. I just started a new job in Maryland but I'm a Virginia resident so I pay Virginia taxes, I'd assume. I was handed a Maryland W-4 but that's not what I should be filling out, right? I should be filling out a Virginia W-4? All the advice I can get will be appreciated! Thank you for reading.

3 Answers

  • 2 months ago

    CPA's are not really tax experts. necessarily.  That said, You file a MD non resident return and a VA resident return.  You pay MD income taxes, as your income is sourced in MD, and that is MD law.  You will get credit for MD taxes paid on your VA return.

  • Judy
    Lv 7
    2 months ago

    Your employer will just take out MD tax.  You'll file state returns in both states, but won't pay double.  You'll get a credit on your VA tax for the tax paid to MD.

  • danxp2
    Lv 6
    2 months ago

    If your employer has locations in MD & VA their payroll system should be set up to withhold VA taxes in your situation just work with the payroll/HR team. If they are just in MD then they may not be set up to do this. 

    If they are not set up to withhold VA taxes, your paycheck will have MD taxes based on the Md W-4 you submit. 

    MD and VA are a reciprocal state so you only have to report the wages as income in your resident state, not the state you work in as well when you are filing your annual state return. If you had MD income taxes withheld you would have to file as a non-resident tax return to get those taxes back. VA doesn’t have a credit for taxes withheld by MD. Depending on how much you make, you might have to make quarterly income payments to VA since your employer is not withholding for you. 

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