I moved halfway through the year from Maryland to DC while working in DC. I have both DC and MD in my W2. Do I still have to file as a part year resident for both? Steps?

[lisawhohu18]

I lived in MD from 1/2017 to 4/31 and moved to DC from 5/1 to end of 2017. On my W2 there is a DC and MD state wages and income tax section. Do I have to file for both as a part year resident? I thought DC and MD had reciprocity. What do I need to change to show the correct information? I partially completed 2 for DC and MD and it said I still owed MD 1,500 dollars in taxes? Although I probably didn't complete the adjusted gross income correctly. 

[IreneS]

Yes.  You have to file part-year returns for both DC and MD and allocate your wages between the two states. 

Reciprocity doesn't apply in your situation since you moved from one state to another.  Reciprocity would apply if you lived in MD the whole year and worked in DC.  You would only have to have MD taxes withheld from your paycheck (even though you worked in DC).

Prepare your MD return first, since you now live in DC.  Each state return will ask you how much income was earned in each state -- not just wages, but also interest, dividends.  You can just take a percentage of the other income and allocate 1/3 to MD and 2/3 to DC.  For your W-2 wages, you can use the amounts reported on your W-2 or use the fractions. (1/3, 2/3).

[lisawhohu18]

I am completing the DC part now, I'm in the section where it asks me" You had adjustments to your federal adjusted gross income of $476. Enter the portion of these adjustments that applies to the time you resided outside DC." How do I calculate this? Where did the $476 come from?

[IreneS]

Without seeing your return, I can't tell where the figure came from.  Maybe it's the state refund?  Enter 1/3 of the 476 ($159) since that's the amount of the year you lived in MD.