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Capital gains tax in two states

We are MA residents who sold a family home in MD. Having a difficult time trying to figure out the credit for capital gains tax paid in MD. The MA Form 1 worksheet and instructions are geared for income tax credits. We paid over 12,000 to MD, part of which was non- resident tax. We also paid over 8,000 to MA. The MA return by our MD- based accountant listed a MA state credit for only about $900. This doesn't seem right. Any ideas how we can check accuracy? Or why the credit was so low? Thanks.

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1 Reply
TomD8
Level 15

Capital gains tax in two states

TurboTax does this calculation for you.  In order for the program to correctly calculate and apply the "other state credit", the non-resident state return must be completed first, before the resident state return is done.  If the state returns are not done in the correct order, the calculation will not be correct.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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