DMarkM1
Expert Alumni

Get your taxes done using TurboTax

You and TurboTax have already figured the tax paid to another state, it's zero.  So there will not be a credit on your resident MD return for taxes paid to another state (NY).  Just confirm/enter the negative income and zero tax paid to NY.  

 

Typically, when there is income and it is taxed by a non-resident state that income is double taxed by your resident state.  In those instances the resident state offers a credit for taxes paid to another state to mitigate the double taxation.  However, since you have a loss and thus no income taxed by NY there will be no credit to claim on your MD resident return. 

 

Note:  The income loss is already taken on your resident return as it automatically transfers from your federal entries in the "Wages & Income" section, the self-employment/business topic to your resident return.    

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