Maryland Residency Status - Resident vs Non-Resident for Individual Living and Working in UK

[MDMike]

Which is the correct 2023 residency status for a Maryland adult that studied abroad in UK to earn a master's degree in 2022, and now works and lives in the UK?  The tax filer earned all of their 2023 income in UK and does not own a home in MD (parents still do, same address as when they left for graduate school).  Would tax filing be under Maryland Resident (Form 502) or Non-Resident (Form 505)?  Person work in UK under a student visa and holds a Maryland driver's license.

[TomD8]

If she now lives in the UK, and the UK was her domicile (her main, primary home) for all of 2023, and she has no MD-source income, then she has no tax obligation to the State of Maryland.  In the Personal Info section of TurboTax, she would enter her State of Residence as "Foreign or U.S. Possession", which is the last choice in the state of residence drop-down window.

She must still file a federal tax return.  As a U.S. citizen, she is taxed on her worldwide income.  She'll be able to claim a credit on her U.S. return for income tax paid to a foreign country.

She should enter her mailing address in TT as the address she wants the IRS to use if they have to send her a letter or a check.  Her mailing address and her state of residence do not have to match.

[MDMike]

Just to confirm, since no tax obligation to the state of Maryland, that means she does not need to even file the return.  Correct?

[TomD8]

Correct.  She has no need to file an MD tax return.

[MDMike]

Thank you!