@DanielV01 , thanks again.
Unfortunately, I now worry that my DC return is wrong and that I have made the situation worse.
Because I indicated a MD-based income in response to the intial prompts, the TurboTax system started the MD forms and it added tax credit to my DC return. I filed and DC accepted my return before resolving the conficting guidance on whether the MD unemployment was taxable nonresident MD income.
I didn't realize nonresident returns should be done before filing resident returns. (Did TurboTax file the incomplete MD nonresident return along with my completed DC return? I cannot tell now.) Beause MD has extended its filing deadline to July, I thought I had time to resolve this issue, but I didn't see any reason to delay filing in DC--where the deadline was fast approaching. Wish now that I hadn't filed either state return until I had resolved this issue and deleted the incomplete MD return from TurboTax.
I went back into TurboTax today after deleting the unfiled and unfinished MD nonresident return, which I now know that I don't need to file, and it adjusted the DC taxes, showing that I get a much lower refund.
From what I have found, I will either have to file an amendment or DC will catch the error and adjust/reduce my refund. Also, it seems that experts recommend against filing any amendments until the initial return has been processed. Would you agree? If I wait and DC doesn't catch the error and adjust/reduce my refund on its own, will I get penalized for receiving the higher $ return or, worse, audited, before I can amend my DC return?
What a mess!
Do you have any advice for me?
Thanks!
