Moved to a state without taxes

[AngFaye]

I moved from Maryland to Alaska in September 2024. I changed my residency upon arrival. My W2 shows that state wages were lower than that of my federal wages. Within Turbotax, I am completing the part-year residency. One question asked me to identify the non-maryland income....  Using my W2, am I to subtract the state from the federal and put the difference in this box, or has Turbotax already accounted for this when I entered my W2 information in the beginning? This is very confusing because if I were to input this number, it would appear (to me) to be double-dipping. If not, why is this question here? Is the question there as a way to correct a mistake in the event my W2 might have both Fed/State wages the same? I want to ensure that I complete my taxes correctly. Appreciate your speedy response.

[ThomasM125]

You can subtract the state income from your federal income to determine your non-Maryland income, if the correct amount of Maryland income is listed on line 16 on your W-2 form. TurboTax did not account for that when you entered your W-2 income, as there could be other factors that contribute to the calculation of the correct amount. 

The answer you give should not result in the double taxing of income, but you can look at your state tax summary to confirm that the correct amount of income is being listed on your Maryland return as follows:

While working on your Maryland state return in TurboTax:

1. Choose Tax Tools from your left menu bar in TurboTax Online
2. Choose Tools
3. Choose View Tax Summary

One reason you may have to enter the Maryland non-taxable income is that the state income reported on your W-2 may be in error, as is common when taxpayers change their resident but their employer fails to report that change properly on the W-2 form. There may be other reasons as well.