The client said that her employer said that they must withhold MD taxes. We discussed that 2 years ago with her when she asked if she should withhold MA taxes as well since she lives in MA, but MD taxes must be withheld according to her employer. MD taxes nonresidents if there is no reciprocity agreement. Nonresidents who work in MD or derive income from a MD source are subject to the appropriate MD income tax rate for your income level, as well as a special nonresident tax rate of 1.75%. So that was my assumption originally 2 years ago why her employer said that they must withhold. But now I see that if her income if not MD sourced, then this is not applicable.

@sjrcpa @rbynaker