After finishing my U.S. return, I start on Maryland. There I see the following prompt: Next, keeping in mind that I'm a Part-Year MD resident (no place of abode there after June 30, and having e...
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After finishing my U.S. return, I start on Maryland. There I see the following prompt: Next, keeping in mind that I'm a Part-Year MD resident (no place of abode there after June 30, and having established new domicile in Pennsylvania on July 1) as set forth in the part-year residence resident box on the first page of MD Form 502, I get to the following screen: This automatic subtraction is incorrect. Recall that $524 is ALL of my interest on U.S. government obligations. As we know, I will only recognize the portion of the dividends I received from the relevant mutual fund while I was a Maryland resident (see below), and I can only deduct the portion of the interest I received from U.S. government obligations while I was a Maryland resident. There is, however, no obvious way for me to correct it. Eventually, I come to the following prompt: This prompt is a bit of a head-scratcher, but I figure my income received while a resident of a state other than Maryland (PA income, in my case) includes, among other things, all of the dividends paid by the relevant mutual fund while I was a PA resident less the interest on U.S. government obligations paid by the fund while I was a PA resident (doing the math, the latter amount comes to $311.46). So far, I think I've done everything TurboTax has asked me to do. But when I look at my Maryland Form 502SU, line AB, and Maryland Form 502, line 13, I see that TurboTax has deducted ALL of my interest from U.S. Government obligations for the entire year ($524) from my Maryland income. That amount can't be right. It exceeds the amount of interest I received from U.S. Government obligations while I was a resident of Maryland. In fact, it exceeds the amount of all of the dividends I received from the relevant fund while I was a resident of Maryland. So what to do? (More . . . )