Wrong automatic entry on the state withheld

pajakdwiina · Mar 23, 2023 1:43:46 PM

<P>I live in New York state but get W-2 income from Maryland. When I scan the W-2 for the federal tax, the turbo tax entered the state withheld as New York, rather than Maryland.</P><P>When I working on the state of Maryland in the Turbo Tax, I able to manually change the state withheld on the form 505 (nonresident), However, when I working on the New York State at the Turbo Tax I am not able to change the amount into zero. Please help. Thank you</P>

Full credit is a relative term as it depends on the state giving the credit rather than where you paid it. The credit will be the lower of the state tax liabilities on the same taxable income.

It gets even trickier when the states use different amounts for the taxable income. Again, the lowest taxable income is used.

The end result is the least amount of tax credit on the least amount of taxable income.

You should consider making an estimated payment or two to the state during the year due to the difference in credit allowed. You can pay MD online at Pay It!

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