Multiple State Filing

[sshah]

My situation is slightly unique when it comes to state tax returns.

I am married filing jointly with my spouse. I worked in NY and lived in NJ from Jan to August 2019. We then moved to MD in Aug 2019 and we both began work in DC. She was withheld with DC taxes, whereas I had a reciprocity waiver and got withheld NJ taxes since my permanent home is in NJ. My driver's license and voter registration is also in NJ along with co-owning a property in NJ. We leased an apartment in MD around end of August.

My question is I know we need to file NJ, NY, and DC (for my spouse only) return. Do I need to file MD state tax return as well. The law states that I need to live in MD for 183 days or more to be considered a resident, which I didn't. For part-year and nonresident returns, I need to work in MD, but I worked in DC instead. I've heard some people tell me to do a part-year MD return and some tell me just do a full year NJ return. I was withheld NJ taxes while working in DC so I did pay state income taxes. Please let me know what to do and how to file on Turbo Tax online. I am getting super weird refund results right now.

[JotikaT2]

It actually depends on if you are planning to stay within Maryland.  

If you are, you should file in MD as a part-year resident even though you were not there for over 183 days as you are planning to stay there.

If you are planning to stay in MD, you should also file a part-year resident return for New Jersey up until the date of your move in August.

When you are preparing your returns, you should prepare the nonresident returns first for New York and DC.  Then go ahead and prepare New Jersey and Maryland.  

Make sure you complete the credits for taxes paid to other states for the state you will be keeping as your resident state (it will depend upon your answer regarding the MD return.)

If your wife is planning to keep working in DC while working in MD, be sure she contacts her employer to request that they withhold taxes for her state of residence.  DC does not withhold taxes for nonresidents.  If you are able to do this, you should not have a filing requirement in DC if your current situation remains the same.

[sshah]

Thank you JotikaT2. So if I am planning to stay in Maryland this year, then I should file a part year resident return for 2019, but I am actually planning to move to Virginia around July, so then what shall I do? Maryland was always meant to be temporary hence I also kept my mailing address in my permanent home in NJ where I grew up.  

[AmyC · Accepted solution]

MD is just a stopping point on the way to VA. No income from MD and not a resident, don't file a MD return. Enjoy VA!