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:
- Add or Edit Nonresident Pennsylvania return
- Pennsylvania Taxable Income
- Gross Pennsylvania Compensation
- Calculated Wages
- Complete Schedule NHR
Pennsylvania requires proof that taxes were paid to the other state. The return must be printed and mailed along with a copy of the Indiana state return, the W-2(s) with the Pennsylvania 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 the 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:
- Add Nonresident West Virginia Return
- Are you a full -year resident of a Reciprocal State with West Virginia Income Only from wages, tips and salary? - Answer Yes and Select Pennsylvania from list of states
Select the taxpayers resident state and complete the section for Special Nonresident Income for Reciprocal States.
To claim exempt from future withholdings, complete form WV/IT-104 and file it with the taxpayers employer.
If the other state is Washington DC:
- Add or Edit Nonresident DC state return
- Commuter/Domiciliary State Exemption - 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: