I'm a full-time Maryland resident, using Turbotax Home & Business. My business is simply a DBA. I have income from Maryland, but also received a 1099-MISC completing payment for an invoice issued when I lived and worked in Massachusetts. How do I properly divide this for state tax purposes?
You'll need to sign in or create an account to connect with an expert.
If you're a full time resident of one state, that means you didn't live in another state, but I see that you said you lived and worked in MA, as well. I'll explain the two situations.
If your primary resident is Maryland (you lived there all year), but you have business income that was earned in another state (MA), then you'll file two returns. First, a nonresident return for MA reporting only the income earned in that state. Second, a resident return for Maryland, which will claim all of your income, including the income earned in MA (because your resident state lays claim to all).
However, your resident state will give you credit for taxes paid to another state so that you're essentially not double taxed. For the software to calculate this, you'll need to update the non-resident state first and the resident state last.
Otherwise, if you lived in two states during the year, then you'd file a part year resident return for each state. MA has an interesting apportionment way of allocating wages, but the software handles it for you and you simply report the amount earned in that state.
If you're a full time resident of one state, that means you didn't live in another state, but I see that you said you lived and worked in MA, as well. I'll explain the two situations.
If your primary resident is Maryland (you lived there all year), but you have business income that was earned in another state (MA), then you'll file two returns. First, a nonresident return for MA reporting only the income earned in that state. Second, a resident return for Maryland, which will claim all of your income, including the income earned in MA (because your resident state lays claim to all).
However, your resident state will give you credit for taxes paid to another state so that you're essentially not double taxed. For the software to calculate this, you'll need to update the non-resident state first and the resident state last.
Otherwise, if you lived in two states during the year, then you'd file a part year resident return for each state. MA has an interesting apportionment way of allocating wages, but the software handles it for you and you simply report the amount earned in that state.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Cat108
Level 1
tommyzed
Level 1
Autumnpv
New Member
Dannyapp
Level 2
mojo03
Returning Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.