updawaz00[at]hotmail.com wrote:

- quote -

Your friend was considering the question in terms of
eligibility for the federal gain exclusion on the sale of a
principal residence. Your question has to do with state
income tax liability, a totally different issue.

There is a reciprocal agreement between PA and MD, so that a
resident of one state who works in the other pays state
income tax only to the state of residence. In your case,
however, your earnings are actually in DC, where they are
not taxed because you are a nonresident (due to a provision
in the Home Rule Act).

If you maintain a place of abode in MD (e.g., your apartment
there)for more than six months of the taxable year, you are
a MD resident taxable on all of your income, regardless of
source.

If you are now domiciled in PA (i.e., PA is your main home
and principal establishment, the place to which, whenever
absent, you intend to return), you are also a PA resident,
subject to tax on all of your income, regardless of source.

Whether either state will allow you credit for the tax you
pay to the other is problematic. Your earnings have a
source in a third jurisdiction, DC. As a result, it is
possible that neither state will give you any credit.

You should consult a local tax practitioner with a good
understanding of PA and MD state income tax laws as soon as
possible.

Katie in San Diego

The foregoing is intended for educational purposes only and
does not constitute legal or professional advice.

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You may need to file taxes in both MD and PA. Check each
state's tax guidelines.

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I recently purchased a primary residence in PA. I have an
apartment in MD and work in DC, so I stay in MD 3 days a
week. My W2's are MD and so is my drivers license car reg. I
was going to change my license and vehicle reg to PA,
however, a former accountant told me it was not necessary to
change everything over unless I was going to actually sell
the PA residence...

So I'm taking it that I still have to perform a MD state tax
form instead of a pa form?

cheers

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