I’ve recently moved to Maryland and now I my state return says I owe Maryland state taxes, why?

It depends.

 

Maryland taxes residents on all income if you meet the filing threshold. (See page 7 in the link below for the threshold amounts.) 

 

MD Filing instructions with filing threshold amounts

 

If you did not have enough withholdings on your earnings for Maryland, this could also account for the tax liability.

 

If you moved to Maryland during the year but earned income in another state, you may be entitled to a credit for any taxes paid in the other state to ensure your income is not taxed twice by 2 different states.

 

I recommend you review the following to ensure your returns are calculated correctly.

 

In the "My Info" section of TurboTax, confirm that you have entered the correct state information: 

1. Click "Edit" to the right of your name 
2. Confirm your input under #2 "Tell us the state(s) you lived in" 
3. Do the same for your spouse if you are married filing jointly. 
4. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes to the question asking "Did you make money in any other states?" to report your income that is not from Maryland.

This will then allow you to enter your state returns for the nonresident state as well as the resident state. 

 

Please note the following as it will affect the calculations: 

 

Make sure you prepare the prior resident state tax returns first.   Be sure to answer the questions correctly to ensure only income sourced to those states specifically are reported.

 

Once you have entered all of the nonresident state information, then start your Maryland return.  This will ensure you receive any credits for taxes on income which may have been taxed in both states. 

 

 

In the MyInfo section, enter your State of Residence as of December 31, 2020.  If you moved to MD in 2021, it is not your state of residence for purposes of your 2020 tax returns.

 

But enter your current mailing address when you enter your address info into TT.