- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
State tax filing
A corrected W-2 isn't possible because your withheld taxes have already been deposited with NC. Therefore your original W-2 is correct. It shows what was actually done with your withheld funds. You should enter your W-2 into TurboTax exactly as it appears.
You need to file a part-year resident tax return for each of the two states. On the NC return you report only the income you earned while still a resident of NC. This will result in your excess NC withholding being refunded to you. On your MD return you report only the income earned after becoming a resident of MD. You will of course owe taxes to MD on that income, since no MD taxes were withheld for you.
For tax purposes, you became an MD resident (and ceased being an NC resident) on the day you began living in your new home in MD.
If all your work is going to be done remotely from MD, ask your employer to withhold MD taxes only. As an MD resident, you are only subject to NC taxes if you physically work inside NC.