MD state tax... Form 502, Form 505 or both?

[metrixtech]

I was a resident of Maryland for the first two months of 2025 and then moved to New Jersey, now my permanent residence.  I own a Maryland (LLC) consulting business and derive all my income still in Maryland.  For 2025, do I need to file a Maryland Form 502 (Part-year resident) or a Form 505 (Non-resident) or both?  If both, I can't see how Turbo Tax Desktop produces both returns/forms.  Right from the start, the program requires me to pick only one.  Any guidance would be appreciated.  Thanks.

[MindyB]

The Maryland instructions state that you should file both a part-year and non-resident return according to your circumstances (page 15: "If you moved into or out of Maryland during 2024 AND received taxable Maryland income both while you were a resident and while you were a nonresident AND you are required to file a federal return, you are required to file two returns with the State of Maryland.")

The best solution is to create the part-year return along with your federal return. Then, in the Desktop product you can create another return to prepare the non-resident return.  I'd recommend paper filing them both, as only one original return can be filed with the same social security number.

[metrixtech]

Thank you for that guidance.  I have a question.  When I complete the MD 502 Part-Year, my entire year business income flows from the federal to the state return.  I can't see where I would reduce or adjust my Maryland income to reflect the that earned over the two month period during which I was a resident of Maryland.  Can you please point me in the right direction?

[MindyB · Accepted solution]

Yes, you can remove the amount from your time as a nonresident that is being included by using the screen entitled "Additional Info for Part-Year Residents."  Type in the amount that should be removed and that will flow to Maryland Form 502 line 12.