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My home address is in Pennsylvania but I rent a room in Maryland during the week since I work there. Do I owe state taxes to both Maryland and Pennsylvania?
ANSWER
Expert Carlton Melton's Answer:
A nonresident of Maryland is required to file a Nonresident Income Tax Return if they have income derived from:
1. Tangible property, real or personal, permanently located in Maryland;
2. A business, trade, profession or occupation carried on in Maryland; or,
3. Gambling winnings derived from Maryland sources.
A nonresident is not required to file if:
1. Your Maryland gross income is less than the minimum filing level for your filing status;
2. You had no income from a Maryland source; or
3. You reside in Pennsylvania, Virginia, West Virginia or Washington, D.C., and earned only wages in Maryland.
The exception listed in (3) above states that if you work in Maryland but reside in a reciprocal tax state (Pennsylvania, Virginia, West Virginia or Washington, D.C.), and your only income from a Maryland source is wages, you can be exempt from Maryland income tax and Maryland withholding tax on those wages.
Additionally, you may have to file a Maryland Form 515 if you reside in a local jurisdiction of Pennsylvania that imposes a local income or earnings tax on Maryland residents. You will need to contact your local government to see if your jurisdiction is included.
You may or may not need to file a Pennsylvania personal income tax return depending upon whether or not you meet the filing requirements which state:
1. Every resident, part-year resident or nonresident individual earning, receiving and realizing more than $33 in gross Pennsylvania-taxable income for their taxable year beginning on or after Jan. 1, 2004 ($35 for taxable years beginning on or after Jan. 1, 1993 and ending Dec. 31, 2003), even if no tax is due (e.g., when an employee receives compensation where tax is withheld).
The specifics of your particular situation will determine which states, if any, that you must file a personal income tax return in.
