Working and living in different states

[Anonymous]

Say you live in MD and work in VA.

How does this affect taxes? Do you pay a higher or added %

[Anonymous]

None of the local jurisdictions have a commuter tax, do they? We work in DC and live in MD, we don't pay anything to DC--just to MD.

[Anonymous]

Theses states have reciprocity. This means you pay taxes only for the state where you live. Make sure you submit the correct state withholding forms to your employer.

[Anonymous]

You only pay taxes to your state of residence.

[Anonymous]

Anonymous wrote:You only pay taxes to your state of residence.

+1

DH has never worked in MD but lives in MD. Taxes are paid according to being a MD resident.

[Anonymous]

Anonymous wrote:None of the local jurisdictions have a commuter tax, do they? We work in DC and live in MD, we don't pay anything to DC--just to MD.

I thought DC was different

[Anonymous]

Anonymous wrote:Theses states have reciprocity. This means you pay taxes only for the state where you live. Make sure you submit the correct state withholding forms to your employer.

Correct. This is not NY-NJ-CT, which is entirely different and hella complicated.

[Anonymous]

I live in va and work in NYC!?! That's really crazy!

[Anonymous]

Locally no issue. But when I was a consultant and traveled I had to file in multiple states. But my employer grossed up at year end to more or less equalize me back to what I would have paid in my home state.

[Anonymous]

The pp's are correct. For MD and VA this is a non-issue. The only time it becomes an issue is if you live in MD and work in VA and your employer erroneously withheld VA tax. Then you may have to file a VA return to get the VA tax back. But it doesn't sound like that's your issue. If you use a program like TurboTax, this is one of the questions they ask so it is very very common.