DE resident working in MD and taxes

[MelodyRNurse]

Can anyone tell me please how this works. Do you end up paying taxes for both states????

[kanling]

First the bad news: Maryland and Delaware don't have any kind of agreement on taxes. If you are a resident of Delaware and work in Maryland, you will have to do a tax return for both states.

You will have to do a Maryland return for your income in Maryland using the non-resident form here:

http://individuals.marylandtaxes.com/taxforms/07forms.asp

and Maryland will screw you with a higher tax rate on that income than they would if you lived in Maryland. (Totally unfair since you are using less services- but that is typical Maryland style.)

More information here:

http://individuals.marylandtaxes.com/incometax/nrinsidemd.asp

Now the good news: If you also have to file a Delaware income tax return because of additional Delaware income (or for whatever reason), you should be able to take a direct credit for the Maryland taxes you paid. So, you aren't really getting double taxed, you are just getting taxed at the higher of either Delaware or Maryland. (If that makes you feel any better.)