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vdots
Level 2

Part year resident MD

I moved from WA to MD in June 2019. I am filing part-year resident 502 for MD. Towards the end of the interview TT asked me what portion of my income was from non-MD sources. Should I consider ALL incomes: retirement, SS, capital gains? Some of these incomes sources are treated differently in MD, I believe, but the interview asks just for a single sum without categorization. How will TT know to treat what portion of such incomes to be MD-based?

4 Replies
MarilynG1
Expert Alumni

Part year resident MD

Since you enter the dates you moved to Maryland in your Federal return in the MY INFO section, all your 'Unearned Income' should be Allocated between MD and Washington, based on % of time lived there.

 

Click this link for more info on Allocating Income on a Part Year Resident Return

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vdots
Level 2

Part year resident MD

I sold a rental property before I moved to MD. Do the capital gains from that transaction also need to be allocated to MD on a % basis? The sale occurred on a date months before my move to MD.

vdots
Level 2

Part year resident MD

The examples under "Unearned income allocation" in the TT help link you provided  (thanks, btw) suggest that I would allocate all of the gains from the sale of property before moving to MD to the state where the sale occurred. So, the % allocation seems more appropriate for accounts where interest is earned continuously. Where I have evidence that the unearned income occurred on a specific date, it seems correct to allocate the income to the state of residence on that date. Am I right?

Irene2805
Expert Alumni

Part year resident MD

Yes - The sale of the rental property should be allocated to WA.  As you stated the % allocation is more appropriate for the accounts where interest is earned continuously.

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