How do I get a refund, via my income tax return, for Maryland non-resident seller transfer withholding tax that shouldn't have been paid during the sale of my home?

I lived in my MD home from 2013 to 2017, and sold it in mid 2019. I lived out of state from 2017 to late 2019, and rented out my MD home until a few months before it was sold.
KurtL1
Expert Alumni

Deductions & credits

To obtain a refund of the Maryland non-resident seller transfer withholding you would file a Maryland non resident Form 505.  Line 44 is where you would enter the amount withheld. See Maryland Tax Booklet - Form 505.

 

You will need to add Maryland as a state in TurboTax and file as a non resident.  

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Deductions & credits

I moved back to Maryland in December of 2019. Therefore, as of right now, I am filing as a part-year resident for both Maryland and Pennsylvania. Does that make a difference? 

Hal_Al
Level 15

Deductions & credits

No, part year resident won't matter. MD conforms to the federal home sales exclusion rules. 

 

But, tax will be assessed on the rental portion of the capital gain (the depreciation recapture).