MD credit for taxes paid to another state

[Bang25]

I posted this question in a thread about CT, but it was suggested that I start a thread about MD since that's the main state in question for me.

My son earned wages in three states for approximately 4 months each. 

1) We live in Maryland (full-time resident state).

My son was at college for his last semester in the spring in Ohio. Had a service industry job for 4 months in the beginning of 2024 and he did pay local and state tax to OH (filing non-resident status with MD as state of residence).

3) Then he immediately got a job after graduating and we had to move him to Connecticut. He worked there and paid taxes there. After four months or so, his job was then changed to allow for being fully remote, so to save money he moved home and started paying taxes to MD. [Filing non-resident status with CT, since he was a "resident" of MD for the majority of the year (from when he moved back home and when he was a student in OH)]. 

I'm using TurboTax desktop. I have downloaded all three states from TurboTax. I have inputted both of his W-2s.

• OH's W-2 shows wages earned and taxes paid for four months in OH.
• CT employer's W-2 shows total wages earned with a state copy for both CT and MD showing wages and taxes divided and paid to each state.

Reported wages earned in CT and MD are practically identical since he worked in both states around +/- 4 months. Taxes paid to both states is also almost identical. He earned a lot less in OH while a student.

When I report all income and taxes paid to OH and CT as being double taxed in MD, TurboTax shows that he owes MD a large chunk of money, but that he's also due a large refund (but not the entirety of taxes paid to CT) from CT, and lastly also owes a little to OH. It's not what I was expecting, so I feel I'm doing this wrong. But maybe this makes sense to those who know better than me. 

[MaryK4]

You are missing the credit for tax to to other jurisdictions on the Maryland return.  Go back to Maryland and look for it in the Credits section.  (See below).

Please post again if you have questions as you are competing the section, or after you complete it.  

[Bang25]

I did complete that section using the total amount of state and local taxes paid each to CT and OH. Maybe it's correct then?

[KeshaH]

If you're treating your son as a resident of MD for the whole year, all of his income is taxed to MD. This could put him in the top tax bracket for the state. Since he only worked in OH and CT for part of the year, his income from those states is likely taxed at lower tax brackets.

If that's the case, it makes sense that he'd have a balance due to MD even with the credits. The credits are limited to the tax that he paid in the other states but it won't cover the full amount of tax on that income since the MD tax rate would be higher than the tax rate paid in OH and CT.