topic Different license from home/work location in State tax filing

Different license from home/work location

linkZelda — Tue, 27 Apr 2021 02:23:04 GMT

Hi everyone! I’m in a bit of a tricky situation.

I have a Maryland drivers license, worked part-time in MD, attended college in MD, and lived in Maryland with my parents until February 2020. In February, I got a job in Virginia and moved to an apartment there. I lived in that apartment for the remainder of the year (and currently just moved to a different VA apartment). I still haven’t changed my Maryland drivers license to a Virginia license (with COVID and the fact that the car I’m driving is insured/owned by my parents and has a Maryland License plate). I still consider my parents home address to be my permanent/forwarding address (just because I foresee myself bouncing from va apartment to va apartment each year from now on).

Which state would I be filing from? Is there anything I need to add or include? Should I file for both states to be safe? Will TurboTax help with this? Thanks so much for your help!

Re: Different license from home/work location

ColeenD3 — Tue, 27 Apr 2021 02:24:02 GMT

You are filing as a VA resident. The fact that you haven't yet changed your license or that you use your parents' address because you frequently move from place to place in VA does not make you a MD resident.

The overriding intention is that you are a VA resident. " In February, I got a job in Virginia and moved to an apartment there. I lived in that apartment for the remainder of the year (and currently just moved to a different VA apartment)."

Re: Different license from home/work location

linkZelda — Tue, 27 Apr 2021 02:36:33 GMT

Thanks so much for your help! I guess it doesn’t matter that I also worked in MD part-time in January 2020? I was told that since it’s only a month, it wouldn’t necessarily count. I was worried and was about to do dual state tax just to avoid any potential penalities.
Again, thank you 🙂

Re: Different license from home/work location

DawnC — Tue, 27 Apr 2021 02:46:58 GMT

The wages you earned in MD do count and have to be reported. Any W-2 you received was also sent to the IRS. Not including one, no matter how small will delay the processing of your tax return. As Coleen stated above, you will file a VA resident tax return. You still need to file a MD non-resident return for 2020 since you did earn income there. When you prepare your state returns, complete the MD nonresident return first as you will get a credit on your VA return for any taxes that you may have to pay to MD.

TurboTax will walk your through completing the state returns. Review this FAQ first to ensure you have your personal information set up correctly in TurboTax.