It depends.
Yes but only if you have rental income in your
nonresident state where the property is located and you meet the minimum filing requirements for that state as a nonresident status filer. For any taxes paid to
this nonresident state, you will be allowed a resident state tax credit.
If you
have nonresident rental losses and this is your only source of nonresident
income/loss, you have no filing requirement in that nonresident state. However,
you may want to consider filing a return anyway so that you can establish with
your nonresident state that the rental property produced a passive loss (which
can be carried forward and used against future passive income).
You
will still need to include your rental activities (income or loss) on your
federal and resident state tax returns.
If you have rental income from both MD and non-MD sources, you will need to make an allocation of this income on your MD nonresident state income tax return (screenshot)
