Virginia other state tax credit on wages reported to MD with MD withholding!
Please note that beginning in 2021 VA TAX is no longer allowing a state tax credit on wages reported to MD on VA residence. However, Lacerte is continuing to include MD wages from Line 1 Column 2 of the MD Form 505 in the calculation of the other state tax credit in the VA Form 760CG. Per a Tax Commissioner Ruling in 2021, the credit is apparently no longer allowed in VA on W-2 wages reported to MD: 21-45 | Virginia Tax.
