@DMarkM1 Thank you so much and your help has been extremely helpful.
I have some additional follow up questions.
1. Previously, you taught me how to calculate the portion that is double taxed by MA and MD by taking note of MA income taxable and MA Income tax when only recording my MA Income while Nonresident and wiping out my MA income while Resident.
If I compare the resulting MA taxable income and tax amounts from the above method to the incremental taxable income and taxes paid resulting from MA Nonresident Income Tax (calculating the difference between taxable income and taxes with and without MA Income while Nonresident in addition to MA Income while Resident in place), the amounts are somewhat lower in your methodology supposedly due to how deductions work. Would recording the incremental taxable income and taxes paid for MA income while Nonresident as part of my MD state filing be also an acceptable methodology, as this is really the difference I am paying additionally to MA from their nonresident tax rule?
2. Per the system MD is currently charging me interest charges for the taxes that are due during 2021. Because I will continue to be working in DC and my taxes will be withheld by DC in the future as well, I will always have my taxes refunded from DC and paid to MD during my tax filing after the calendar year. Is this interest charge really appropriate in my situation and would I always have to pay interest every year as my taxes are withheld in DC? Would the only way to avoid interest charges to pay double taxes to MD and DC prior to tax filing (vs. some exception allowed by reciprocity agreement between MD and DC)?
