I lived in two states- DC and MD. I earned capital gains only while DC resident, but the MD form automatically includes this income and won't let me remove it. How can I?

[MayaD]

If you lived in DC and MD you need to file Part year resident for each state and allocate the Income between the states. On MD return TurboTax will ask about the amount of capital gain earned while you were living in MD, make sure to enter 0. 

[garzington]

This appears to be incorrect- I am not given the option to say how much was earned in MD- only how much was from US obligations.  It automatically filled in the portion for MD.  Yes, I did partial-residency returns for DC and MD.

[DavidD66]

There is a page in the Maryland return where you can enter your non-Maryland income so that it won't be taxed.  See the screenshot below:

[garzington]

This is exactly the kind of page I need, but it simply never takes me there.  I've been back and forth dozens of time- I never see this page.  I only have the page where that # is already determined, and I can choose how to allocate between me and spouse.  Is it possible it matters which state return I start first?  I did DC first since I lived there first, but could it somehow be causing a problem?

I get a page called 'additional info for part year residents' that just has one box for "non-Maryland income."  It doesn't break it down into Capital Gains, Dividends, Interest, etc?

Thanks!

[AmyC]

Please make sure that you are in the part year resident return for MD. You will not see that screen as a full year resident.

@garzington

[garzington]

I am definitely on part year resident form.

[garzington]

Is there someone who is experienced with this kind of issue who could share screen and walk my through it?  I spoke with a couple people on the phone to help who were friendly but unable to solve the issue.  Otherwise, I will go with Plan B and delete both state returns and try doing MD first to see if it changes anything, and will report back.

[garzington]

Hello-

Exactly  when and how did you come to this page asking for non-Maryland income allocation?  I do not get that page, and I am definitely on the part-time resident form.

Thanks!

[AmyC]

Online version:

Review MD part year information and see this screen:  

1. Click on Income and start.
2. For a married couple, it asks about the amounts for one spouse and allocates the rest to the other. Continue.
3. Then you see Here's the income that Maryland handles differently.
4. Scroll to the bottom when finished and click Done with Income.
5. The next screen says Additional Info for part-Year Residents.
6. It looks exactly the same as the desktop version below.
7. Enter Non Maryland income and continue.

Desktop gives you an allocation screen like this:

[garzington]

Thank you AmyC.  I do see this page; would Capital Gains earned in another state be included in this total?  I had understood it to mean just Salary/Dividend/Interest Income.

[AmyC]

Yes, those boxes mean all non-Maryland income, including out of state capital gains. Same for the losses and adjustments. One big lump total. You are very welcome. I hope this let's you get finished!