This would be a good time of the year to talk to a tax preparer or accountant to find out what you should be doing to make filing your taxes easier. They can also tell you what, if any, expenses will be deductible. You will need to make sure that SC income tax issue is properly handled & withheld by your employer, not MD otherwise it will be much more complicated for you later. You may not have to file taxes in MD if you are working entirely from SC but if your employer reports your wages to MD, they will probably expect you to file something with them verifying you owe no state taxes there.
Many will be glad to talk to you for at least a basic free consultation hoping to get your biz when it is tax time.
Maryland Income Tax Information
For tax year 2007, the Maryland income tax rate is set at 4.75 percent and it applies to the taxable income of residents and nonresidents who derive income from a Maryland source. Nonresidents are subject to a special nonresident tax rate of 1.25 percent, in addition to the 4.75 percent rate, for an effective tax rate of 6 percent.
How do I File a Nonresident State Tax Return? - TurboTax Customer Care & Support
Myth: I need to pay tax to the state my employer is based in
True or False? Linda, a full-time Maine resident, is a remote employee who works from home, handling customer service calls for an insurance company located in Ohio. She therefore needs to pay Ohio taxes on her income.
False. What matters is where she earned her income, not where her employer is located. Any income she earns while working in Maine is subject to Maine – not Ohio – income taxes. She should only have to file a Maine tax return.
However, if Linda's employer mistakenly withheld Ohio taxes (perhaps out of habit because most of their employees do work in Ohio) then Linda will also need to file a nonresident Ohio return to recover the erroneous withholdings. She'll declare that she earned no wages on her Ohio return, and TurboTax will calculate a full refund for Ohio taxes withheld.