MD state tax... Form 502, Form 505 or both?

Forum|Forum|4 months ago
February 9, 2026
1 reply
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I was a resident of Maryland for the first two months of 2025 and then moved to New Jersey, now my permanent residence. I own a Maryland (LLC) consulting business and derive all my income still in Maryland. For 2025, do I need to file a Maryland Form 502 (Part-year resident) or a Form 505 (Non-resident) or both? If both, I can't see how Turbo Tax Desktop produces both returns/forms. Right from the start, the program requires me to pick only one. Any guidance would be appreciated. Thanks.

TurboTax Home & Biz Windows

Best answer by MindyB

Yes, you can remove the amount from your time as a nonresident that is being included by using the screen entitled "Additional Info for Part-Year Residents." Type in the amount that should be removed and that will flow to Maryland Form 502 line 12.

MindyB

Level 13

The Maryland instructions state that you should file both a part-year and non-resident return according to your circumstances (page 15: "If you moved into or out of Maryland during 2024 AND received taxable Maryland income both while you were a resident and while you were a nonresident AND you are required to file a federal return, you are required to file two returns with the State of Maryland.")

The best solution is to create the part-year return along with your federal return. Then, in the Desktop product you can create another return to prepare the non-resident return. I'd recommend paper filing them both, as only one original return can be filed with the same social security number.

metrixtechAuthor

Level 2

Thank you for that guidance. I have a question. When I complete the MD 502 Part-Year, my entire year business income flows from the federal to the state return. I can't see where I would reduce or adjust my Maryland income to reflect the that earned over the two month period during which I was a resident of Maryland. Can you please point me in the right direction?