4. What if I live in Maryland but commute to work in Delaware?
If you live in Maryland and work in Delaware, you must file tax returns with both states. To avoid dual taxation, you can get a credit for taxes paid to Delaware by completing Maryland Form 502CR and filing it with your Maryland income tax return. Be sure to include a copy of your Delaware return. For more information about the tax situation for commuters, see Maryland Residents Who Work in Another State.