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pennylundgren3
New Member

How can Turbo Tax charge for tax returns for 2 states when PA & MD have a reciprocal tax agreement?.

 
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TerryA
Level 7

How can Turbo Tax charge for tax returns for 2 states when PA & MD have a reciprocal tax agreement?.

If the only income you earned in the other state was wages, and the employer did not erroneously withhold that state's income tax, then you indeed don't have to file a nonresident return for that state.

If TT is prompting you to complete that nonresident state it's because you told it that you "made money" in that state and so need to file a nonresident return for it. Go back through Personal Info and in the screen Did You Make Money in Any Other States?, click No. Notice that the screen says not to select <that state> if your only income there is from wages (or at least it does in the Desktop version of Deluxe). That will turn off TT's desire to prepare that nonresident state's return.


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TerryA
Level 7

How can Turbo Tax charge for tax returns for 2 states when PA &amp; MD have a reciprocal tax agreement?.

If the only income you earned in the other state was wages, and the employer did not erroneously withhold that state's income tax, then you indeed don't have to file a nonresident return for that state.

If TT is prompting you to complete that nonresident state it's because you told it that you "made money" in that state and so need to file a nonresident return for it. Go back through Personal Info and in the screen Did You Make Money in Any Other States?, click No. Notice that the screen says not to select <that state> if your only income there is from wages (or at least it does in the Desktop version of Deluxe). That will turn off TT's desire to prepare that nonresident state's return.


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