I live and work in VA as a real estate agent (licensed in DC and MD as well). I have several properties in MD. My rentals comes out to be a loss this year. I materially engage in all my properties since I am a real estate professional (does this have anything to do with my confusion?). To my understanding, I should be paying state taxes to VA instead of MD. I know I have to file MD state taxes but shouldn't I be taxed in VA with credit from MD if so? 'Maryland Taxable Income' as noted below does not seem correct as it seems like it's drawing the income from me being a Realtor which should be based in VA instead of just the income from the rental properties. I would rather pay state tax to VA since it's a much lower rate. I am very lost, please advise.
What I don't understand is that my 'VA Refund' at the top of TurboTax shows:
VA Tax Refund: $0 in Green
VA Tax Summary
VA Taxable Income: $86,586
Virginia Income Tax: $4,721
Total Payments: $4,721
My 'MD Tax Due' at the top of the software shows:
MD Tax Due: $6,047 in Red
Maryland Tax Summary
Maryland Taxable Income: $93,850
Total Maryland Tax: $6,047
Total Payments and Credits: $0
Tax Due: $6,047
Refund: $0
