Thanks!
Actually, I didn't fix my DC return before filing it because I didn't get the MD unemployment question resolved till after I'd filed our DC and Federal returns. It was only after learning that we don't owe MD that I noticed the MD tax credits on our DC return (which I suspect came from the incomplete and unfiled nonresident MD return that the TurboTax system started for us).
The MD Tax Department advised us to file a nonresident return with the 502LU, but I think it misunderstood the question and it assumes we'd qualify for the subtraction. But MD didn't withhold anything, which makes a lot more sense to me now, and MD can't give us back $ we owe to DC on those benefits. In fact, The message from the MD tax department specifically references unemployment "withholding," thereby supporting my belief that it assumed we wanted $ back and not that we wanted to know if we owed. (So, no need to file a MD nonresident return to get a refund, either, as we didn't have any MD withholding.) Besides, we don't qualify for the MD relief act anyway.
In any event, I will wait until the DC return has been processed to do anything else. I'm hoping DC will realize we aren't eligible for the MD tax credits and simply reduce our refund. If not, then I will file an amendment or whatever else is needed after the dust settles on this whole mess.
