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Q&A: I am a Maryland resident and my taxes were witheld by Delaware. What should I do?

by tom44 on March 18, 2013

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Question by Mr. Knowitall: I am a Maryland resident and my taxes were witheld by Delaware. What should I do?
Job is in Delaware and home in Maryland. When I took the job my payroll dept was taking out taxes in both states and I told them to only take taxes out DE taxes. Was this right thing to do based on my situation?

Best answer:

Answer by DemocracyDog
I don’t think so. If you live in MD, you probably owe MD tax. You may have to file a DE return to get your withholdings back. Call MD and tell them what happened because you need to send them some money right away or you may be subject to interest and penalty for not having the tax withheld from your checks.

You may also owe DE tax, but remember that the states cannot tax each other, so you will get credit from MD for what you have to pay in DE and vice versa….. and the taxes go on and on and on.

Know better? Leave your own answer in the comments!

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