Working in Maryland but Living in West Virginia? Here’s How to File

Individuals who work in Maryland but reside in West Virginia face specific tax filing requirements that necessitate careful consideration of both state regulations. Understanding the obligations for each jurisdiction ensures compliance and prevents potential penalties.

Maryland Tax Filing Obligations

Employees working within Maryland are generally required to file a non-resident income tax return if they earn income within the state. Maryland imposes a state income tax on all income earned within its borders, regardless of the taxpayer’s residence (Maryland Comptroller, 2023). Non-residents must file Form 505, Maryland Nonresident Income Tax Return, reporting only the income derived from Maryland sources.

West Virginia Residency and Tax Responsibilities

As a resident of West Virginia, you are subject to West Virginia state income tax on your worldwide income. West Virginia residents are required to file Form IT-140, West Virginia Personal Income Tax Return, and report all income earned during the tax year (West Virginia State Tax Department, 2023).

Dual Filing Requirements and Credits

Since income is taxed by both states—Maryland for income earned within its borders and West Virginia for overall income—taxpayers may be eligible for a credit to mitigate double taxation. West Virginia offers a credit for taxes paid to other states on the same income (West Virginia Code §11-21-10). To claim this credit, taxpayers must attach documentation of taxes paid to Maryland when filing their West Virginia return.

Practical Steps for Filing

1. File Maryland Nonresident Return: Complete Form 505 to report Maryland-sourced income.
2. File West Virginia Resident Return: Complete Form IT-140, reporting total income.
3. Claim Credit: Attach documentation of Maryland taxes paid when claiming the credit on your West Virginia return.
4. Maintain Records: Keep copies of all filings and payment receipts for future reference or audits.

Additional Considerations

Tax laws are subject to change; therefore, consulting with a qualified tax professional or reviewing official state resources is advisable before filing. Both states’ departments provide detailed instructions and assistance:

• Maryland Comptroller’s Office: https://www.marylandtaxes.gov
• West Virginia State Tax Department: https://tax.wv.gov

By adhering to these guidelines, individuals can ensure proper compliance with both states’ tax laws while optimizing their filings.

Navigating a multi-state tax situation doesn’t have to be stressful. Partnering with JC Tax Services for the upcoming tax preparation season ensures your Maryland and West Virginia filings are completed accurately, on time, and with every applicable credit and deduction considered. We review your unique work-and-residency setup to provide clear recommendations and help you avoid overpayment, surprises, or compliance issues.

Ready for a smoother filing experience?
Schedule your tax prep with JC Tax Services today and let us handle the details—so you don’t have to.

References

Maryland Comptroller. (2023). Maryland Income Tax Instructions. Retrieved from https://www.marylandtaxes.gov

West Virginia State Tax Department. (2023). Personal Income Tax Instructions. Retrieved from https://tax.wv.gov

Note: Always verify current forms and regulations as they may be updated annually.

jptpc

See Full Bio