Question

Resident in Maryland, Remote worker for NH

Forum|Forum|3 years ago
August 31, 2022
1 reply
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Hi!

I am a permanent resident in Maryland, in Baltimore City, but have a remote job for a company based in New Hampshire.

How should they be taxing me? If they do not withhold MD taxes, are there any fees or challenges I may come across when filing?

They are currently doing Medicare Employee, Federal Withholding & Social Security Employee, but no state taxes.

Thank you!

rjs

Since you are a Maryland resident you have to pay Maryland tax on all your income, no matter where the income is from. If your employer does not withhold Maryland tax, you have to make estimated tax payments to Maryland during the year. If you don't, the "challenge" that you will come across is that you will have a huge payment due when you file your Maryland tax return at the end of the year, plus a penalty for not having paid anything during the year.

New Hampshire has no income tax on wages, so you do not have to worry about New Hampshire tax, and you do not have to file a New Hampshire tax return.