Reciprocity MD and PA: Reside in both MD and PA, tax resident of MD, work is in PA and income comes from PA job; employer withheld state income from both states.

[Lizy]

Thank you for the follow up @TomD8 

1) How do I make sure that the PA local income tax withheld from my W-2 I entered in MD 502CR form on line 11 ("total state and local income tax shown on tax return") as per the 502CR Instructions regarding PA local income tax for MD residents, also shows up also on line 12 ( "Credit for income tax paid to other state and/or locality. Your credit for taxes paid to another state and/or locality is the smaller of the tax actually paid (line 11).....") and on line 14, (" local credit for income tax paid to another state")?

MD 502CR Instructions, page 1, for reciprocal states: "NOTE: If you had wages subject to tax in a locality in Pennsylvania, you may file Form 502CR to claim a State and local tax credit. Enter the amount of tax that you paid to the locality on line 11, Part A of the Form 502CR."

2) One problem is that line 11 is asking for a tax return to be attached to support the amount on line 11, but there is no PA locality tax return available to be provided. But the 502CR instructions seems to imply that as long as I paid for locality tax, it can be included in line 11 (but I have no tax return to back this up, just the locality W2 which I assume is insufficient).

3) Currently lines 12-14 of MD502CR are all showing zero in TurboTax software despite an amount present on line 11

4) For 2020 tax, I assume that because line 14 was zero from the software filled form despite an amount present for line 11 (and on line 13 instead of line 14), my request for PA locality income tax credit was denied by MD Comptroller office and I had to appeal because their office thought I was requested PA state income credit (for which I already received refund by asking PA to refund me), but it was locality tax income credit I was requested. I am waiting final resolution to get my 2020 PA local income tax credit from MD . Therefore, I am trying to avoid the same problem with 2021 tax return.

5) Can you assist how to make the software include the amount of PA local income tax I am requested credit for to show up in all relevant lines (12 and 14) and not only on line 11 of MD 502CR, or am I supposed to just manually entered the amount on lines 12 and 14?  Many thanks for any assistance

[TomD8]

Unfortunately I don't have the MD or PA software on my computer, so I can't duplicate your situation (I'm a fellow user, not a TT employee).  But my first question would be: did you complete your non-resident PA return before you did your home state MD return?  You must complete the non-resident state return first in order for the program to calculate and apply the credit correctly.

[Lizy]

Yes, I followed all the guidance provided and completed PA non resident first. There appears to be a technical glitch with the software.

[Critter-3]

Contact TurboTax support and speak directly with a TurboTax support agent concerning this situation.

See this TurboTax support FAQ for a contact link and hours of operation -https://ttlc.intuit.com/questions/1899263-what-is-the-turbotax-phone-number