You can subtract the state income from your federal income to determine your non-Maryland income, if the correct amount of Maryland income is listed on line 16 on your W-2 form. TurboTax did not account for that when you entered your W-2 income, as there could be other factors that contribute to the calculation of the correct amount.
The answer you give should not result in the double taxing of income, but you can look at your state tax summary to confirm that the correct amount of income is being listed on your Maryland return as follows:
While working on your Maryland state return in TurboTax:
- Choose Tax Tools from your left menu bar in TurboTax Online
- Choose Tools
- Choose View Tax Summary
One reason you may have to enter the Maryland non-taxable income is that the state income reported on your W-2 may be in error, as is common when taxpayers change their resident but their employer fails to report that change properly on the W-2 form. There may be other reasons as well.
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