Delaware Reciprocal Assistance Agreement
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FAQ
Where do I pay state taxes if I live in a different state than my employer? As a remote worker, you must pay tax on all your income to the state you live in (if your state has personal income tax). This is true no matter where your employer is located.
Your income tax liability may change based on the state you're in, but you should expect to file taxes for both states: one return as a resident for the state where you live and a separate return as a nonresident for the state where you work.
Your income tax liability may change based on the state you're in, but you should expect to file taxes for both states: one return as a resident for the state where you live and a separate return as a nonresident for the state where you work. Learn more about filing taxes as a remote employee.
Does Delaware have reciprocity with other states? A. Delaware does not have reciprocity with any state.
You would not be required to file a tax return. But you might want to file a return, because even though you are not required to pay taxes on your Social Security, you may be able to get a refund of any money withheld from your paycheck for taxes.
Delaware has not entered into a reciprocal agreement with Maryland. You have a withholding requirement for the wages paid as compensation for services rendered in the Maryland office and those paid for services rendered while teleworking in Maryland.
Like H&R Block, TurboTax has a free filing option that allows you to file your federal return and one state return at no cost.
In some cases, spouses who live in different states can submit their federal tax returns as ?married filing jointly? while filing their respective state returns as ?married filing separately.? Other times, there may be tax advantages to filing jointly in one state, or the nonresident spouse will be required to file.
