DianeW777
Expert Alumni

Get your taxes done using TurboTax

If you worked evenly throughout the year you can simply divide the total wages by 12 then multiply by 3 to get the MD wages, the balance will be DC. If you did not work the full year, then you can use the same formula with a reduced overall number of months. If the income was not received evenly you can use the pay stubs as you indicated, but only necessary if you received different pay at different times which is unusual.

 

The withholdings will be exactly as they show on the W-2 because that is where the state withholding was paid by your employer.

 

When you enter your W-2, be sure to put the correct state wages for each state and the applicable withholdings with DC as noted.  This will carry the correct wages to your part year resident states.  To be clear, since you actually moved, you do not have reason to use the reciprocal agreement rules, they can be disregarded.

  • There will likely be a balance due on MD and possibly a refund on DC.

The address on the W-2 is fine because your employer updated your address.  You may want to check with the payroll department so that they begin to withhold MD tax instead of DC for 2021. It's not too late for them to make the change before making any payments or making adjustments for the next payment.

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