Additional Info for Part-Year Residents - PA to MD

[ironman0723]

Hi, I moved right in the middle of last year around 6/15/24 - from PA to MD.

I am working on my Maryland state return and am asked to enter any income I received while not living in Maryland. I need to fill two boxes - one for Non-Maryland Income, and one for Non-Maryland Losses and Adjustments.

I worked for the same company throughout the entire year, doing the same job, the only difference is that I moved. So on my W-2 from the same company, I have a MD section and a PA section. In Box 16 for MD, the state wages were $46,218.51, and in Box 16 for PA the state wages were $51,309.26.

Is this as simple as listing $51,309.26 in the Non-Maryland Income box? I've seen some recommendations in previous years when this question has been asked to subtract the Box 16 for MD from Box 1. My Box 1 is $92,426.50, so subtracting MD income (46,218.51) from that would give me $46,207.99. 

These two numbers are very different - Box 16 for PA at $51,309.26 versus the subtraction of Box 16 from Box 1 at $46,207.99.

Which way is the right way?

I have not even gotten to the Non-Maryland Losses and Adjustments box yet, but I was going to look at this next. 

Thanks ahead of time for the help!

[MaryK4]

The correct Non Maryland income would be the Box 1 minus the Box 16 Maryland amount.  The Box 16 for Pennsylvania includes some items that Pennsylvania taxes as compensation (most notably Employee contributions to an eligible Pennsylvania retirement plan and or contributions to a qualified deferred compensation plan) that Maryland does not tax.  This is why the two Box 16s are more than the Box 1.  

[ironman0723]

Great - thank you for this answer. When I submitted the question I also realized I was only calculating my own W-2 and not my wife's. My wife worked at the same company for the same period at the same time, so I am adding her info the exact same away and including the total for both of our W-2s for non Maryland state income in the same box, correct? Do I also need to add any interest earned on Savings accounts while living in Maryland?

With that Question answered, I need to move on to the Non-Maryland Losses and Adjustments box. I'm not quite sure I know what this is - how would I calculate this?

[DianeW777]

Yes, in the Maryland (MD) return you will be able to add interest earned while a MD resident. 

As far as the non MD losses and adjustments you can use your statements for dates to decide what belongs to MD and what belongs to Pennsylvania (PA).  If you are still unsure then a simple equation would be amount divided by 12 months then multiplied by the number of months in each state.

@ironman0723 

[ironman0723]

Hi @DianeW777 , I am confused about what the Non-Maryland Losses and Adjustments is actually calculating. I see two screens that reference the same number. One screen is "Additional Info for Part-Year Residents", and one screen is "Allocate Federal Amounts to Susannah". Both screenshots are below.

They both reference a number - $86,192, but I cannot figure out what this number is. As previously stated, this tax return is joint for my wife and I. When I look at the income numbers on our W-2s for both PA + MD, I cannot tell what combination of incomes add up to this. We also have some savings account interest, some dividends and capital gains, but I cannot cleanly find a combination of numbers that add up to this amount, so I am not clear on what number is relevant to put in the box.

1. Can you give me an idea on how this number is calculated so I can understand what the number pertains to?

2. How do I know what my Non-Maryland Losses and Adjustments are? What is considered a Loss or Adjustment?

3. How do I calculate income received during Non residence? I will need to know the answer to number 1 and 2 first, but may still need to know how to input this info with those answers.

Thank you!

[DianeW777]

You can enter the income you know is not taxable in Maryland (MD) because of the timing of the income. Make sure you are using the information from your pay stubs and statements for income other than wages. Enter the correct income in both screens. The second screen indicates there are capital gains so again, if this is not income sold during the PA residency, you should remove it or enter the correct number.

My advice would be to print the returns to see how these figures come together from the federal entry. You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready.

• Can I print a copy of my return in TurboTax Online before filing?

If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.

@ironman0723