Where do I enter MW506NRS?

Forum|Forum|7 years ago
June 5, 2019
2 replies
0 views

I reside in Ohio. I owned a farm in Maryland. I sold the farm. The Title Company used form MW506NRS (Maryland Return of Income Tax Withholding for Nonresident Sale of Real Property) and took 7.5% of the proceeds. Where do I report this?

TurboTax Premier Windows

Hal_Al

Level 15

You probably have to file a MD non resident return to report the sale and claim a refund, if any.

In TurboTax (TT), enter at:

Federal Taxes Tab

Deductions & Credits

-Scroll down to:

--Estimates & other taxes paid

-Other Income taxes

On the next screen, scroll down to

-Other income taxes paid in 2018

- Withholding not already entered on a W-2 or 1099
-On the next screen, enter the amount of withholding and the state

You may want to mail your MD return (rather than e-file) so your can attach a copy of the form showing the withholding.

If you itemize on the federal return, you should still enter the state withholding to get the deduction.

Hal_Al

Level 15

I'm not from MD and not familiar with their specific procedures. The above is a generic state answer. But, an internet search reveals there may be a special (and easier) form for claiming a refund. You may be able to avoid the TT fee for an extra state return.
<a rel="nofollow" target="_blank" href="https://forms.marylandtaxes.gov/18_forms/MW506R.pdf">https://forms.marylandtaxes.gov/18_forms/MW506R.pdf</a>

BumbleBall

Level 2

@Hal11_2_AI I couldn't find much help on the subject at the link you provided. Just takes you to the Comptroller of MD's website. Your earlier answers were better. Thanks !

BrittanyPreparesTaxes

Level 2

the above information is incorrect. State tax withholdings DO NOT get entered into Federal information section. they need to be entered on the state return walk though.

To enter the MW560NRS for an Individual it would be entered as an estimated tax payment. This is found in Turbotax starting within the Maryland return:

Answer all questions and file as a "Non Resident".
you will come to the "Take a look at Maryland credits"
scroll down and look under "other credits" for "Maryland Withholding on Real Estate Sales".
click start and answer the questions.

Efile the MD return, do not send a copy of the MW506NRS. These filing instructions can be found on you Copy C of your MW560NRS.

trailbound

Level 2

There is no section called "Maryland Withholding on Real Estate Sales" in TurboTax Premier for a Maryland state return under the Credits section. This seems to be completely missing from 2022 TurboTax.

DaveF1006

Level 15

Enter this in the following manner.

Go to federal>deductions and credits
-Estimates & other taxes paid>other income taxes
Go to Withholding not entered on a W2 or 1099.
Then enter the amount in State Withholdings after selecting Maryland as your non-resident state
Be sure to file a Maryland non-resident return to either receive a refund for excess taxes paid or to receive a credit in your resident state return. Be sure to prepare the Maryland non-resident return first.

@trailbound

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