How does Maryland tax remote workers?

There are a few situations to consider. You may fall into more than one category.

1. I lived in Maryland.
• If you're considered a full-year or part-year resident of Maryland, you'll be taxed on all income earned from any source during your time of residency. Be sure to file the appropriate return.
2. I worked remotely from Maryland.
• Except for residents of states that have reciprocal agreements with Maryland, Maryland taxes income earned for personal services performed while in Maryland (even if you're a nonresident). This includes remote work for an employer or clients based outside Maryland if you were physically in the state while doing the work. If you are a resident of Pennsylvania, Virginia, West Virginia, or the District of Columbia and your only income is from wages and salaries working in Maryland, your wage income is not taxable in Maryland and you can be exempt from having Maryland tax withheld on that income.
• You may be able to claim a credit for taxes paid to another state on your resident return for any income required to be reported in multiple states.
3. My employer was based in Maryland.
• If your employer was based in Maryland, they may have withheld Maryland taxes from your W-2. However, if you didn't live or work in Maryland, your employer was not required to withhold Maryland tax and you won't owe Maryland taxes on those wages. If the employer withheld Maryland tax on income from working remotely in a state other than Maryland, file a nonresident return to claim a refund of those withholdings.
• As a nonresident of Maryland, you would only need to file if you have taxable Maryland income, or your employer withheld taxes on income that was not taxable in Maryland.

If your wages were minimal and you didn't do any other business in Maryland, it's possible you'll be exempt from filing regardless of residency. See the Maryland Form 505 or the Maryland Nonresident Booklet for more information.