How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Lev Your Own Question
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
870116
Type Your Tax Question Here...
Lev is online now
A new question is answered every 9 seconds

I work company in MD. Many of the employees live in different

Customer Question

I work for a company in MD. Many of the employees live in different states. DO They need to file MD state tax form and their resident state tax form? So that taxes will be taken out from both states each pay period? Or do they just need to file in one state and then when they file their taxes their home state will work it out then?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
General rule for withholding is based on the place of employment. The employer must withhold taxes for the state where the employment place is physically located.Each employee will file tax return for both states - where he/she works and where is the residency.If the same income is taxed for both state - on the residential tax return the credit is allowed for taxes paid to other states.That woudl be a general approach.
Expert:  Lev replied 1 year ago.
Specifically for your state...Nonresidents who work in Maryland or derive income from a Maryland source are subject to the appropriate Maryland income tax rate for their income level, as well as a special nonresident tax rate of 1.25%.By law, the nonresident tax rate must equal the lowest local income tax rate paid by Maryland residents (currently 1.25%) combined with the top state tax rate.Employers must withhold Maryland income tax for nonresidents using the 1.25% rate.
Expert:  Lev replied 1 year ago.
Residents of the District of Columbia, Pennsylvania and Virginia who did not maintain a place of abode in Maryland for more than six months (183 days or more), are exempt from withholding of Maryland tax on Maryland wages and salary by the authority of a reciprocity agreement between Maryland and these jurisdictions.West Virginia residentsWage and salary income for residents of West Virginia is not taxable to Maryland, regardless of the amount of time spent in Maryland, and they are exempt from withholding of Maryland tax on Maryland wages and salary by the authority of a reciprocity agreement between Maryland and West Virginia.Local tax for certain nonresidentsThe local income tax is imposed on nonresidents employed in Maryland, who reside in local jurisdictions that impose a local income or earnings tax on Maryland residents.

Related Tax Questions