Moved from DC to MD

[Anon31]

Hi everyone,

I moved from DC to MD in April of 2022 but worked in Maryland all year. I was planning to file a part year DC and part year MD tax return but I’m being told I may need to file a part year DC, part year MD, AND nonresident MD tax return since I earned MD income while living in DC. Essentially this will make my income earned while living in DC taxed twice, once on my DC part year tax form and again on my MD nonresident tax form. I know MD and DC have a reciprocity agreement so I feel like I should not have to file a nonresident MD return but want to double check with the community here. 

[SharonD007]

You will file part-year resident state tax returns for both states that you lived in last year. You will not file a nonresident tax return for MD. When you prepare each states tax return, you will be able to allocate the income for each state. Make sure that you answer the questions in the Personal Info Section correctly regarding the states that you live in to ensure that you prepare accurate state returns. 

Please note, prepare the state that you moved from first (DC), followed by the state you live in now (MD). Please review the TurboTax article How do I file a part-year state return? and How do I allocate (split) income for a part-year state return?

[Anon31]

Thanks that is what I thought but the Maryland nonresident  instruction booklet (https://www.marylandtaxes.gov/forms/22_forms/Nonresident_Booklet.pdf) (page 1) states in their table: "Taxpayer who moved into or out of Maryland during the tax year and received income from Maryland sources while you were a nonresident of Maryland." should file "Form 505 Nonresident Return AND Form 502 Resident Return."

Does this not apply since DC and MD have reciprocity agreements? I can't find any source to state that this section doesn't apply for a move from DC to MD.

[MaryK4 · Accepted solution]

Yes, you only file the part-year returns.  Applying the reciprocal agreement allows you to file the Maryland income on your resident Maryland return so you do not have to file the nonresident Maryland return.  @Anon31