MonikaK1
Employee Tax Expert

Get your taxes done using TurboTax

Each state has its own method of calculating the tax to be owed by nonresidents on income earned in that state. Maryland applies tax to the percentage of income earned in that state versus the taxpayer's Federal Adjusted Gross Income (California also uses this method). 

 

It may seem unfair that you would pay more tax on the Maryland income than would another taxpayer with a lower Federal AGI - but this is how Maryland taxes nonresidents and is not due an error in TurboTax. This is why you see a difference in the amount of Maryland tax when you remove your Texas income from your Federal return. 

 

Please see the screenshot below, of a blank Maryland Nonresident Tax Calculation Form 505NR, with the relevant areas highlighted.

 

 

For more information, see the Maryland Nonresident Income Tax Return Instructions

 

@bwdenbow2000

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