Which States does Maryland Have a Reciprocal Agreement With?
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Maryland has reciprocal agreements with Pennsylvania, Virginia, West Virginia and the District of Columbia.
If the taxpayers employer withheld tax for one of the reciprocal states, the taxpayer can claim a refund from the reciprocal state. The taxpayer cannot claim a credit on their resident return for the reciprocal state.
If the other state is Pennsylvania:
- State Section
- Add or Edit Nonresident Pennsylvania state return
- Adjustments to Income
- Reciprocal State Wage Adjustment - Enter the wages as a negative number.
Pennsylvania requires proof that taxes were paid to the other state. 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 the taxpayer is a resident of a reciprocal state.
To claim exempt from future PA withholdings, file form REV-419 with the taxpayers employer.
If the other state is Virginia:
A Virginia return is not required if the 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 the taxpayers employer.
If the other state is West Virginia:
- State Section
- Add or Edit Nonresident West Virginia state return
- Basic Information
- Special Nonresident Income for Reciprocal States
To claim exemption from future withholdings, complete form WV/IT-104 and file it with the taxpayers employer.
If the other state is Washington DC:
- State Section
- Edit Nonresident DC state return
- Basic Information - Enter the state abbreviation for your state of residency.
To claim exempt from future withholdings, file form D-4A with your employer.
Note: The taxpayer may still be liable for county or city taxes in the state where the income was earned. Check with the state for more information.
Additional Information: