Maryland has reciprocal agreements with Pennsylvania, Virginia, West Virginia and the District of Columbia.
If your employer withheld tax for one of the reciprocal states, you can claim a refund from the reciprocal state. You cannot claim a credit on your resident return for the reciprocal state.
The credit for taxes paid to another state is automatically calculated in your account when you add a Nonresident return to your already created Resident Maryland return.
If you qualify for the reciprocal agreement, you will need to remove the automatic calculation by logging into your account and creating a Maryland Resident State return. You will then need to create the nonresident return to claim the refund.
Pennsylvania Nonresidents
If the other state is Pennsylvania, go to:
- State Section
- Nonresident PA return
- Adjustments to Income
- Reciprocal State Wage Adjustment
- Enter the wages as a negative number. Click Save, Cancel, Exit Pennsylvania Return to save
Pennsylvania requires proof that taxes were paid to the other state. You must print and mail the PA return along with a copy of the Maryland state return, the W-2(s) with the PA income and a statement explaining you are a resident of a reciprocal state. To claim exempt from future PA withholdings, file form REV-419 with your employer.
Virginia Nonresidents
If the other state is Virginia, a Virginia return is not required if your only source of VA income was from wages and salaries. Form 763-S is required to be completed to claim a refund for the taxes withheld. The form needs to be mailed to Virginia with a copy of the Maryland Resident Return and copies of the W-2 (s) used to create the return. The mailing address is located on the form. Complete form VA-4 to claim exempt from future withholdings. File the form with your employer.
West Virginia Nonresidents
If the other state is West Virginia, go to:
- State Section
- Nonresident West Virginia Return
- Basic Information
- Complete the section for Special Nonresident Income for Reciprocal States.
To claim exemption from future withholdings, complete form WV/IT-104 and file it with your employer.
District of Columbia Nonresidents
If the other state is Washington DC, go to:
- State Section
- Nonresident DC return
- Basic Information
- Enter the state abbreviation for your state of residency.
Click Save and exit the state return. To claim exempt from future withholdings, file form D-4A with your employer.
NOTE: The nonresident returns will refund some or all of the taxes withheld. You may still be liable for county or city taxes in the state where the income was earned. Check with the state for more information. Generally, the resident return will calculate an amount owed.