Income is Maryland-sourced when it is compensation for services performed in Maryland. Residents of Virginia, Washington, D.C., West Virginia and Pennsylvania who earn wages, salaries, tips and commissions for services performed in Maryland are exempt from Maryland SIT and SITW, because they have a reciprocal agreement with Maryland (Delaware does not). Compensation paid to a Maryland nonresident teleworking in Maryland is Maryland-sourced income and is therefore subject to withholding. (Credit AIPB.ORG)
