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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.
- If the move was at the beginning of the year, I would file MD non-resident and VA resident.
- If later, file both as part-year return, see How do I file a part-year state return?
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.
- 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?
- THEN prepare your resident state VA return and it will generate a credit for your income already being taxed in the non-resident state.
- 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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‎April 7, 2020
4:38 PM