District of Columbia has a reciprocal agreement with Maryland & Virginia. Nonresidents from Maryland & Virginia are exempt from taxation on the wages, salary and other compensation for personal services rendered in District of Columbia, and DC residents are exempt from taxation on wages, salary and other compensation for personal services rendered in Maryland.
If the taxpayers employer withheld Maryland or Virginia taxes in error, the taxpayer will need to file a Maryland or Virginia return to claim a refund. The taxpayer cannot claim a credit for taxes paid to the other state on the District of Columbia return.
If the other state is Maryland:
- Add or Edit Nonresident Maryland Return
- Income and Adjustments
- Wages, Salaries, Tips, etc.
- Adjustments to Wages - Enter as a negative amount
To claim exempt from future Maryland withholdings, complete form MW507 and file it with the taxpayers employer.
If the other state is Virginia:
If the other state is Virginia, a Virginia return is not required if the taxpayers 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.
- Add or Edit the Virginia Nonresident Return
- Personal Information
- Other Categories
- File Form 763-S
The form needs to be mailed to Virginia with a copy of the West Virginia 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.
Additional Information: