Lived part year in MD and DE. All income earned in DE with only DE taxes withheld. Need help correcting residency/state filing.

Forum|Forum|2 months ago
May 7, 2026
1 reply
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Hi, I received a letter from the Maryland Comptroller asking for proof that I was a full year Delaware resident for 2025. My situation is that I lived in Maryland for part of the year and Delaware for the other half. However, all of my income was earned in Delaware, and only Delaware taxes were withheld from my paychecks the entire year. I filed my taxes through TurboTax, but now I’m confused about whether I should have filed as a part year resident for Maryland and Delaware instead of a full year Delaware resident. Maryland is requesting documents like my lease, ID, W2s, and Delaware return to verify residency. What would be the correct way to handle this situation through TurboTax? Would I need to amend my state returns, and if so, which ones?

TurboTax Online

RachelW33

Alumni - Expert

Because Maryland and Delaware do not have a reciprocal tax agreement, you will need to file part year returns for both states.

All of the money earned in Delaware will be taxed by Delaware. Maryland will tax the money you earned while living there; however, it will give you a credit for taxes paid to Delaware on that same income so that you are not double taxed.

To rectify this situation, you will need to Amend your Delaware return to reflect the correct residency dates. Even if your total Delaware tax liability remains the same because all your income was earned there, your residency status must be accurate to ensure Maryland correctly calculates the Credit for Taxes Paid to Another State (Form 502CR).

Next, you will need to prepare a Maryland Part Year Return, Form 502. This return will reflect the dates you lived in Maryland and tax the income you earned while living there. Credit for tax paid to Delaware on that income will be calculated on Form 502CR.

I recommend including a copy of the Delaware amended return and the Maryland Part-Year return with the other information requested by Maryland. If you have a Comptroller of Maryland office near you, it may help you get this issue resolved quicker if you make an appointment with them. They recently added virtual appointments using your computer or cell phone as well.

For more information, please see this TurboTax Help Article: How do I amend my state tax return?

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