topic Can't allocate Non-Maryland Income for Sale of Rental House in State tax filing

Can't allocate Non-Maryland Income for Sale of Rental House

user39545 — Mon, 09 Mar 2026 06:06:58 GMT

I am a resident of WA and sold a rental house in MD. I reported the sale in Federal and have a capital gain due to depreciation. However- in the MD nonresident return, that capital gain is not being allocated to MD. There is a page called Non-Maryland Income Allocation which lists the Federal total and the Non-Maryland total for capital gains, rents, etc. It says, "In the right column, enter amounts that should not be included in your Maryland taxable income". But, the right column is greyed out (not editable) and I can't allocate the capital gain to Maryland. How can I report it?

Re: Can't allocate Non-Maryland Income for Sale of Rental House

DaveF1006 — Tue, 15 Feb 2022 23:29:05 GMT

It depends. I am confused by what you wrote. I am looking at the non-Maryland allocation and the left column is the federal total and the right column B is non-Maryland allocation for capital gains. There shouldn't be any amount listed in column B.

Re: Can't allocate Non-Maryland Income for Sale of Rental House

user39545 — Tue, 15 Feb 2022 23:42:22 GMT

That is the problem. The left column has the federal numbers and they look accurate. But the right column for the non MD portion is prefilled with the exact same numbers as federal and is greyed out so I can’t edit it. I don’t see any way to manually adjust the capital gains. I tried in the mobile app and have the same problem.

Re: Can't allocate Non-Maryland Income for Sale of Rental House

DaveF1006 — Wed, 16 Feb 2022 00:14:57 GMT

OK, I apologize. I recreated the scenario in exactly the way you described and I have the same results, column B is grayed out and is not editable. At this point, you have two choices.

I can report the defect but it may take weeks before it is corrected in the online version.
You can switch to Turbo Tax premier Desktop and transfer the data in your online account into the software. I say this because the second column is editable in the software version. You will need to pay for the software up front but at least you can prepare and file your return without further delays. If you decide to purchase the download for the software, purchase it here.
Once your software has been fully installed, you can transfer your online return directly into the software. make sure you close your Turbo Tax software prior to transferring.
To transfer the tax file, go to tax tools>tools>save your 2021 return to your computer. You can even do this prior to purchasing you software. It will appear as a taxReturn in your documents. It becomes a tax file and when you begin working in your software, there will be a prompt that says find a tax file. This is where you will launch the data into your software.
I would advise you however to wait until the software has been installed and then perform step 4. When you click on the clickable link, it should automatically launch the software.

Re: Can't allocate Non-Maryland Income for Sale of Rental House

W Xu — Wed, 02 Mar 2022 19:49:50 GMT

I am having exactly the same problem. Sounds like this is a bug, and Turbotax needs to correct this quickly.

Re: Can't allocate Non-Maryland Income for Sale of Rental House

Scott0717 — Sun, 06 Mar 2022 04:17:52 GMT

I have run into the exact same problem. I need to allocate rental income and capital gains for a rental property i had and sold in Maryland in 2021 as part of my out of state filing (I live in New Jersey) but the allocation column for Maryland is all grayed out and cannot edit. I have double checked everything in my personal info and Federal return to be accurate. Has a solution been created for this system glitch in the online version of Turbo Tax yet? I am using Premier.