Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Owing state tax Interest and a result of living in Maryland and working in Virginia
The reciprocity agreement in the Washington DC area means that you only pay income taxes where you live, not where you work. Because you live in Maryland you only need to pay income taxes to Maryland. You need to do the following things. Line 3. If you are not subject to Virginia withholding, check the box   on this line. You are not subject to withholding if you meet any one   of the conditions listed below. Form VA-4 must be filed with your   employer for each calendar year for which you claim exemption from   Virginia withholding.  (a) You had no liability for Virginia income tax   last year and you do not expect to have any liability for this year. ... (d) You are a domiciliary or legal resident of   Maryland, Pennsylvania or West Virginia whose only Virginia source   income is from salaries and wages and such salaries and wages are   subject to income taxation by your state of domicile. My company has its only office in Maryland, and conducts all of its   business there. Several of our employees are Virginia residents who   commute to work on a daily basis. Are we required to withhold Virginia   income tax from their wages? No. Because your company is not paying wages to employees for services   performed in Virginia, you are not required to withhold Virginia tax.   If you would like to withhold the tax as a courtesy to your employees,   you may register for a Virginia withholding tax account online or by   submitting a Registration Application. Additional withholding per pay period under agreement with employer.   If you are not having enough tax withheld, you may ask your employer   to withhold more by entering an additional amount on line 2.