I'm a subcontractor now--can I withhold taxes in Md and DC?

[wendybook]

I lost my job last year, but have a new job as a subcontractor. I like the work and the people, and would like this to work out, but the small subcontractor who is technically my emplpyer says I can withhold taxes in either Maryland (where I live) OR DC, where I work, but not both places.
Does this make sense? I don't want to be socked at tax time-I like getting a refund. I want taxes withheld in both places. I have to file in both places; I rent out my condo in DC and thus earn income there in addition to my salary.
Thanks for any guidance. This is new territory for me.

[Anonymous]

You will have to file a resident state tax form for MD where you live. They will want income taxes for money you earned while living there. You do not have to file a DC state form for the wages you earned as they give reciprocity for MD residents working on DC.

It will be easiest on you to have taxes withheld for MD so you don’t get hit with penalties for not paying taxes throughout the year.

You may still have to file in DC for your rental property income.

[Anonymous]

Maryland. They are basically the highest in the country anyway, so you should get max taxes taken out.

[Anonymous]

Why would you withhold any wage income in DC? If your rental property generates income you should set aside some of that for taxes.

If you want a big refund then withhold more than you expect to owe. The IRS has a calculator on the website to help you estimate