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Investors & landlords
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?
No. Just the opposite. You pay tax to MD (on only your MD source income). You also calculate tax on the MD income, on your VA return, but VA gives you a credit, or partial credit for what you pay MD.
Your MD taxable income is NOT $93,850. It's a negative number (the net loss on your rental property). You (apparently) have failed to allocate your income categories (wages, rent, etc) between the two states. Look at the MD non-resident form 505.
Since you have no positive MD income for 2019, just don't file a MD return for 2019.
May 30, 2020
5:25 PM