AmyC
Expert Alumni

State tax filing

It depends on when you moved, how to claim the money. You will get a MD refund and will owe VA. File both returns now. Get your MD refund and use it to pay VA by the new deadline.

Here are the steps to file using the first option, resident VA, MD non-resident.

 

Your resident state taxes all income but gives a credit for income taxed by another state.  Please carefully follow these directions.

You will need to prepare the states in a special order. You may need to delete both states and begin again.

  1. First, prepare your non-resident MD  return. This creates your tax liability for the non-resident state. How do I file a nonresident state return?
  2. THEN prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state.
  3. The credit will be the lower of the state tax liabilities on the same income. You may owe your resident state.

It isn't possible for the program to create a credit before it knows the liability. Your returns may be wrong if you do not prepare the states in this order.

 

 

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