Thank you very much @DMarkM1 , and I have couple additional follow up questions if you wouldn't mind...
1. If I earned an annual one-time bonus payment after I moved to MD (but before 9/13), should I try to split this to record a part of this as MA Income while Resident (to represent the time I worked in MA to earn this bonus) or should this rather entirely count toward MA Income while Non-Resident as I was physically in MD when I received this payment?
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Some additional questions related with my Wife's income for state filing. My wife worked for an MD university for 2021 (remotely during her time in MA until 7/9) and as such her W-2 only states MD state wages and income tax withholding for boxes 15 - 17.
2. Would her MD-withheld income during her residency in MA (1/1 - 7/9) count as MA Income While Resident or should this be 0?
3. Should our non-Maryland income include the portion of her income recorded for #2 (MA Income While Resident)?
4. Would there be any Credit for Taxes Paid to Another State that should be recorded either for MA or MD State Filing given she withheld MD taxes but is counting her income toward MA taxes in #2?
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5. In general, I am confused about the high amount of additional state taxes due for MD in my situation as a product of the Turbotax system (2.2% of our aggregate wage in box 1 of our W-2; 3% of our wage additional due for MD is currently being offset by 1% tax return amount from DC).
Based on me and my wife's W-2, in 2021 we withheld 5.1% of our aggregate wage for state taxes. Based on my review of state tax rates in the applicable states, both MA and MD state tax rates come out to ~5.0% for our income bracket. Is it possible that I am appropriately due another 2%+ of our wage on top of the 5.1% already withheld or would there be any areas for common mistakes that I can double check to stay closer to the estimated 5% state tax range?
Thank you very much.
