Maryland state taxes

[pb35]

I lived in Texas most of the year and moved to Maryland for last four months of the year. However my employer was in maryland for the full year (worked remote for the first part). I received two different W2s with two different state amounts in Box 16 showing the split between the different states.

Do i file maryland part-year resident for state taxes? If so how can i bring in the second box 16 amount showing the amount earned from maryland when a texas resident? Can those be combined in the state filing somehow in Turbotax online?

[MayaD]

Yes, you need to file Maryland Part year resident return. Only income earned while you were Maryland resident is taxable on your Maryland state return. TX does not have any income tax.

How do I file a part-year state return?

Is federal wage info in boxes 1–14  the same on both W-2s?

Did your employer enter TX in box 15 on one of the W-2? 

[pb35]

Shouldn't maryland income earned when I was a Texas resident also be taxable in Maryland since the employer was in Maryland? Normally if someone did that for a full year that would be "non-resident" state tax.

But in this situation does this mean i need to file both part-year resident tax for the maryland income earned as a resident (last few months) and maryland non-resident income tax for the maryland income earned rest of the year as a texas resident? Seems like there should be a single filing where i can pay state taxes on both portions?

[ThomasM125]

You wouldn't owe taxes to Maryland if you did all the work in Texas. Per this excerpt from the instructions to Maryland Form 505, your income would only be taxed in Maryland if it was from a business, trade, profession or occupation carried on in Maryland. Even though your employer is located in Maryland, unless you physically worked there or were an owner in your employer's business, you would not be considered to being carrying on business activities in that state. So, you just need to file as a part-year resident in Maryland for the months you worked or lived there.