dmertz
Level 15

Tax help for military filers

This is the first time I've looked at MD regarding real estate taxes since 2017 when I used to itemize.  Real estate taxes are not added back when determining MD itemized deductions.  They are taken into account to determine how much state and local income taxes to subtract from federal itemized deductions so that federal itemized deductions are reduced only by the amount of state and local income taxes that brought the total federally deductible state and local taxes up to the $10,000 limit.

 

If TurboTax is populating the State and Local Taxes Worksheet for MD Form 502, apparently you are itemizing.  See Instruction 26(l) (lower case L) in MD's Resident Booklet to determine how determine your MD part-year itemized deductions.  By default the full-year amount is prorated by the MARYLAND INCOME FACTOR and is what I would expect TurboTax to use, so I don't think you would have to do anything special with regard to the real estate taxes.  Alternative methods of allocating deductions to MD are are permitted upon written request to MD's Revenue Administration Division, but is probably outside the scope of TurboTax's calculations without using an override.

 

MD's Resident Booklet:  https://marylandtaxes.gov/forms/19_forms/resident_booklet.pdf