Do I need to file a maryland state tax return if active duty military income...

[rheesr]

comes through another state (home of record is TX).  This makes us non-residents, so can we NOT file a Maryland state return?  There are no other wages earned in Maryland - except the only questionable item of "income" is an interest income form from our mortgage escrow account for $31.  I don't know if that is Maryland income or not?  And if it was Maryland income, would it be enough to require us to file a state return?

[DanielV01 · Accepted solution]

It depends, but probably you will not file a Maryland return.  As Texas residents, your military and your spouse's civilian jobs are taxable in Texas only.  In TurboTax, you state that you did not live or work in another state except for Texas.  Even the interest income is not taxable to Maryland.  It also is Texas income.  Since Texas does not have state tax, you will not have a state income tax to file, unless Maryland income tax was mistakenly withheld.  If this is the case, TurboTax (and the state of Maryland) gives you the option to file a nonresident Maryland return and select that taxes were mistakenly withheld.  Otherwise, there is no requirement to file there.