A PA resident is not taxed on their W-2 income in MD and visa versa. If the W-2 lists MD withholding the program will not understand and you will have to file for a refund in MD showing it all to be taxable in PA. You do this by starting with the Information Worksheet and reporting a nonresident state and overriding the amount to be taxed in MD.  If however there is income from anything other than W-2 wages then there is tax in MD as the reciprocity only applies to wage income.