I am a Washington DC resident and my taxes are withheld by the State of Maryland. What should I do?

Question

I am living in Washington DC. But I work in Maryland. My W2 form states that I paid taxes to the state of Maryland. So, I filled my tax return for Maryland online, and I found out that they are goind to refund me 100% of the money they withheld. So, should I also fill a tax return for Washington DC? Please, advice with some links to official web pages so I can explore further this issue.

Answer 1

MD and DC have a reciprocity agreement as to wages. You should have had the employer withhold DC taxes not MD. MD has a form for wages withheld in error, you can get all of your money back using that form.You will have to file as a DC residenmt and pay DC tax.
File the MD form as soon as possible, get the money back before April 15th and then file DC.

Answer 2

At her income level she won't owe any federal tax and probably no DC or MT taxes either. Students attending school away from home don't change their domicile so for tax purposes she is a non-resident of DC. She would file a DC non-resident return and would pay tax only on the DC sourced income. She would then file a resident MT return and would pay tax on her world-wide income. MT would give her a credit for the DC taxes paid, up to the amount of tax that MT would have collected. For tax purposes, DC is treated as a state even though it isn't legally a state. States must give credit for taxes paid to another state but not necessarily for local city and county income taxes. Again, this is really a moot point at her income level. She'll have to decide if it's worth the hassle to collect a $3 refnd from DC.

Answer 3

Here's the actual Washington DC Office of Tax and Revenue website.

Answer 4

I assume the reason you get all of your money back is because you're not a resident of Maryland.

So if WDC has an income tax, you'll have to claim your income two ways:

On Maryland's tax form as non-resident income.
On WDC's tax form as out-of-state income.

I'm sure you're required to file in both states, but you might want to look it up at your state's and district's web sites.

Answer 5

hai
for any tax filing clarifications go for the web sites. here is one of the link of tax filing website. this may be use full for u just check it out