I have the same problem. Resides in MD and employer took DC and MD taxes. What do I file in DC? Just D-40B Sub Nonresident request for refund? And then file the MD taxes for 100% of the income? Is there no reciprocal agreement between DC and MD that the refund passes through? I've been on hold with DC for a half and hour and still waiting.
It sounds like MD I should show the income as 100% from MD? Am I understanding correctly? Any help would be great.
thanks so much
File the D-40B in DC.
The reciprocal agreement between MD and DC is that if you live in one state and work as an employee in the other state, you only pay income tax to your resident sate.
Employee screwed up by allowing DC tax to be withheld.
MD return reports all of the client's income.