When you are in the federal return, be sure you have the correct amount of wages, entered for VA and also MD. You can use your pay stubs to determine the amount earned in each state. If only one employer and you worked in both states be sure to add another state to that W-2.
If you did not have any wages while you lived in MD, then you need not be concerned with the federal W-2 section.
In the Personal Info section be sure to say you earned money in another state if you had wages in MD and VA. Once this is completed you should be able to enter the correct income on each part year resident return as you go through each state return.
MD and VA rules for unemployment benefits:
- MD: Benefits for qualifying filers. UI payments are currently subject to federal and state income taxation. Beginning with Tax Year 2020 and including Tax Year 2021, the Act exempts from the state income tax the UI benefits received by an individual earning less than $75,000, and couples filing jointly or individual heads of households earning less than $100,000.
- VA: Virginia does not currently conform to federal tax legislation enacted during 2021, including the American Rescue Plan Act of 2021. If related unemployment compensation was excluded from federal adjusted gross income, it should be added back as a Fixed Date Conformity Adjustment on your 2020 Virginia return. Use code 37 to subtract any applicable unemployment compensation benefits.
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