You referenced "Pewrsonal tax tip #55". It provides a link to "Administrative Release 1 - Military Personnel and
Civilian Spouses - Both Residents and Nonresidents of Maryland". Although that link goes to a Maryland General Tax page, My daughter found the web link to the specific page we think you are trying to reference.
https://www.marylandtaxes.gov/forms/Tax_Publications/Administrative_Releases/Income_and_Estate_Tax_R...
Page 1, Paragraph C.1 is about a Military servicemember's civilian spouse.
Page 1, Paragraph C.1.a specifically says "Is not subject to Maryland taxation on income for services performed within this State (e.g. wages, salaries or tips) .
Paew 2, Paragraph III.B.2.b (last paragraph on page 2, continuing on page 3) is for a military member with a nonresident spouse (which they are). They did file a joint federal return with TurboTax electronic filing. They have the MD TurboTax form ready, but it includes my daughter's "service" income which was from a health care provider.
My daughter's W-2 form shows income, and it does not have any taxes withheld.
TurboTax shows on Form 505 paragraph B that she has a Maryland adjusted gross income before subtraction of non-maryland income of about $18000. If this is exempt, why is it listed here? Her husband's income from the military is listed on line 22. That isn't MD taxable, which we undersatand, but line 25, shows all $18000 as taxable. Why?
The references that you sent me seem to contradict the way TurboTax is calculating her taxable income.
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