Filing State Tax for Two States

[sulty]

Hi there, if I interned in a company in Maryland and because of the Covid-19 pandemic I had to work from my home state in Texas. Do I need to file federal taxes and state taxes for Maryland. I know Texas doesn't do state taxes. Please advise.

[MarilynG1]

If you never worked in Maryland, you are not subject to Maryland Tax as a telecommuter in another state. 

However, if Maryland Tax was withheld on your wages, you can file a Non-Resident State Return to Maryland to get a refund. 

Click this link for more info on How to File a Non-Resident State Return.

Yes, you would also report your income on your Federal Return (no matter where you lived).

[Edited 4/8/2021 | 3:05 pm]

[SundayInSalem]

You do not have to file a Maryland income tax return if you never worked in Maryland. Your earnings are sourced to Texas which has no income tax.

Maryland explains in Example 3 of Employer Withholding Requirements for Teleworking Employees During The Covid-19 Emergency. (A MD withholding requirement means the employees wages are taxable to Maryland).

My business is based in Virginia with offices in Maryland and Washington D.C. Both of
my employees are Virginia residents. Generally, one works in the Maryland office and
the other in the Washington D.C. office. Both are teleworking in Virginia. Do I have a
Maryland withholding requirement?

No. Your employees are not Maryland residents and they are not performing services in
the state. 

[sulty]

Thanks @SundayInSalem. Do you mean I just need a federal tax? Since Texas doesn’t have a state income tax and I don’t need to

file a Maryland tax. I forgot to mention that Maryland withheld some income.

Lastly, do I need to file the non resident tax as @MarilynG1 @stated. 

Thanks so much!

[AnnetteB6]

Yes, since Maryland taxes were withheld you will need to file a non-resident Maryland tax return to get a refund of the amount that was withheld.  

Follow the instructions provided in the link shared by MarilynG1.

@sulty

[sulty]

Thank you all! One last question. Can I file my federal taxes separately and then file the non resident return after after?

[DMarkM1]

Yes you can file the federal returns first and then later file the state return. 

[sulty]

Hi all,

I've filed my federal tax but confused as to how I can go ahead with Non Resident State Return? Can you please advice?

Thanks,

Sulty 

[SundayInSalem]

File a nonresident Maryland income tax return. 

• In the Maryland section go to Maryland Wage Income
• Change Wages From Maryland Sources to $0

Maryland Wage Income

• Keep going to Maryland Tax Withheld in Error and check the box.

Maryland Tax Withheld in Error

[sulty]

Hi there,

I started this process but I see that I'm getting a new federal refund even though I already received that and I'm just doing the non state resident refund for Maryland. Is this expected or am I doing something wrong?

[DanielV01]

The link below gives the instructions on two options on how to do this and still e-file the state return.  If you are "past the point of no return" as it were, and can't use either option, you can mail in the state return (and ignore the Federal information).  Please see this link:

• Can I file my federal taxes now and skip my state for later?

[SundayInSalem]

@sulty Hi Sulty. You will see a new federal refund if you filed your taxes before the $10,200 unemployment exemption became law. TurboTax was automatically updated for the change.

The IRS has said you do not have to file an amended return to get this refund. The Service expected to begin issuing unemployment refunds this month and continue issuing refunds though the summer.

Tax Treatment of Unemployment Compensation