AmyC
Expert Alumni

State tax filing

1. The program was right. As a nonresident, your last paycheck came from your work in MD. MD nonresident instructions state: Taxable or Reportable income...on income from a business, trade, profession or occupation carried on in Maryland.

 

Your MD return:

Your last paycheck would be reported on the MD tax return and could create a tax liability. Your wife does not work in MD, her income is reported on the MD return and then subtracted out.

 

Your resident SC return: MD and SC are not reciprocal states so you would need to claim a credit on your SC return for tax liability from MD return.

 

2. Once the federal is accepted, the states begin the process.  Since you filed electronically and it is taking longer than expected, you can call them at 1-800-638-2937. 

 

Final thoughts:

 

  • If they reject your return, you can fix it rather than filing amended returns.
  • At some point MD and SC will reconcile the credits on the tax returns. This could be anytime from now to the next 3 years.
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