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How can I get the Maryland state tax 2 income split does not correctly split the deduction for interest and dividends on U.S. obligations?

 
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LenaH
Employee Tax Expert

How can I get the Maryland state tax 2 income split does not correctly split the deduction for interest and dividends on U.S. obligations?

To properly spilt the deduction for U.S. obligations for Maryland state, please follow the instructions below:

  1. Open your return.
  2. When entering Interest Income, go to the screen titled, Do any of these uncommon situations apply? Then, click My state (ME, MD, MA, NH, NJ, or WV) doesn't tax all of this interest. Use the drop down menu to choose Maryland nontaxable interest, taxable to federal
  3. Now, open your state return.
  4. On the page, Here's the income that Maryland handles differently, click Edit next to Two Income Marriage Deduction.
  5. On the line, Capital Gains from Sales of U.S. Obligations, enter the amount for Spouse in the column. The remainder will be allocated to the other spouse.

 

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