Trying to figure out how to maximize refund as it seems NJ does not tax unemployment while MD does. Here is the info:
- Moved to MD
- Received $20k NJ unemployment benefits in 2021 and $0 in MD unemployment benefits
- Husband received w2 in MD
- No other income in NJ besides NJ unemployment 1099-G
- Sold NJ home as primary residence in 2021 so no cap gains but paid $5k in property taxes
What's the best filing option?
- Do I file MD resident, NJ non resident?
- Am I able to pull the NJ unemployment to the NJ non resident form and pull it out of MD taxes
- Use the NJ unemployment numbers based on 1099 but not pay any taxes as unemployment not taxed and no other w2 income
- Decrease income in MD by the NJ unemployment number so no tax on this amount
- Does anything happen to the NJ property taxes as would have no income taxable as seems NJ unemployment is not taxable (1099-G)
- Seems like no property tax deduction as would have no income
- This method would lead to MD tax savings on $20k unemplyment benefits???
***If can't do this, do I just fill out MD resident and include NJ unemployment as income and pay the 8% taxes on it?
******From TurboTax online question page on Maryland Taxes:
Credit for Taxes Paid to Another State
Did you pay taxes to another state or United States territory or possession on income you also included in your Maryland taxable income?
To claim the credit, you must meet these requirements:
- You must have earned the income in the other location.
- The income must be taxable by the other location.
- The income must be taxable by Maryland.
You cannot take a credit for wages, salaries, or other compensation you earned in Pennsylvania, Virginia, Washington, D.C., or West Virginia.
