What gives the state of MD a right to tax income earned out of state (credit, home)

[tech2enable]

As far as I know, if a Virginia resident works in D.C he/she has to pay tax on that income, now D.C does not tax non-residents and is not a state, attempts to enact such as a tax have been struck down by the courts, my question is this

What case law or federal interpretation gives the state of Virginia a right to tax income being earned out of state, a person goes to work in D.C earns the income in D.C , so where does Virginia come into play. Maryland has a tax , so they have a double taxation agreement.

What gives the state of Virginia a right to collect income earned out of state.

People residing in Maryland pay taxes other than income, and not all Maryland residents may pay income tax, so I am not sure about the right of Maryland to collect income taxes on simple residence. Now its a bit strange, other states do the same , but the district is not a state, does the commerce clause make an exception,

I know people living in Tennessee and working in Mississippi will have to pay its income tax though since Tn has not tax not the other way around although commuter from TN would pay MS tax despite lack of TN state income tax if they work there.

What gives the states of Virginia and Maryland the constitutional right to do this, does west Virginia do this too, how about Pennsylvania. If one could theoretically live in a no income tax state and work in DC, no tax, it seems MD and VA are taking advantage of the coffers.

[janetvj]

MD has reciprical agreements with many other states/jurisdictions (including VA and DC) so that individuals who live in one state but work in another are not subject to tax in both jurisdictions. In addition, MD allows a credit for tax paid appropriately to another jurisdiction. If you are a MD resident, you will not be able to get out of paying tax just because you may work in a state that does not impose an income tax. Taxes go toward paying for services extended to you as a resident - fire and police protection for your property, schools for your children, roads that you drive on, natural resources that you use, etc, etc.

[tech2enable]

Yes, but they are milking D.C, as D.C does not tax non-residents.

[lscalder]

I am tired of tax. If you get base 50k working in VA and living in MD you really do not make 50k due to all these taxes you have to pay. I hate tax.

[tech2enable]

I agree, perhaps MD/VA should stop non-residents then if they want to play fair.

[dkf747]

The same thread is going on in the DC forum. You have been shown to be wrong over there and it's the same here.

[cpterp]

I think most states are like that. Would you rather paying taxes to the state you worked in? I can just imagine how poor Maryland would be if it didn't collect out of state income taxes...

[tech2enable]

Originally Posted by dkf747

The same thread is going on in the DC forum. You have been shown to be wrong over there and it's the same here.

The difference is I have not been wrong, not if there are any misconceptions, you ought to read the thread carefully, people get a bit confused especially when it comes to taxation, liabilities, and law and what's going on.

[dkf747]

Originally Posted by tech2enable

The difference is I have not been wrong, not if there are any misconceptions, you ought to read the thread carefully, people get a bit confused especially when it comes to taxation, liabilities, and law and what's going on.

As mentioned over there, you have not made clear which taxes you are talking about. It can't be income taxes because all 3 jurisdictions have reciprocity agreements for those (you pay where you are a resident). Please clarify.

[tech2enable]

Originally Posted by dkf747

As mentioned over there, you have not made clear which taxes you are talking about. It can't be income taxes because all 3 jurisdictions have reciprocity agreements for those (you pay where you are a resident). Please clarify.

Okay both Maryland and Virginia are allowed to tax non-residents who work in their states, if I work in VA and live in MD and vice versa, however they deliberately opt not to do so and have a tax agreement of sort, in the case of D.C. non-residents are not taxed by D.C. at all, so there is no need for an agreement by Virginia and Maryland although residents are taxed, if D.C was able to tax non-residents just like MD,VA are , MD,VA would probably credit the taxes paid to D.C and it would put D.C on a more equal footing, instead MD and VA only give you tax credit for states that levy income taxes, including pennsylvania and other states in which taxes are levied by the home state, is deliberately orchestrated.

I am wondering though, what gives the constitutional right to collect a resident's out of state income