Two State Taxes Resident or Non-Resident

[arun1rain]

Hello Experts,

I am trying to work through the step-by-step option in Turbotax but have not been able to find what needs to be done. My situation is following (and not that unusual):

1. For the first nine months of 2024 I lived in MD and worked for an employer in MD.

2. For the last three months of 2024, I moved to SC but continued to work in MD remotely for the same employer.

My understanding is that I need to file:

1. Resident tax in MD for first nine months.
2. Non-Resident tax in MD for the last three months.
3. Resident tax in SC for the last three months.

Using Turbotax deluxe, I cannot get to doing this.

I tried various other options (part-time resident for MD and SC, part-time resident for MD and Resident for SC etc.) but none gives the returns I expect.

Your insight on with what residency in MD and SC state taxes to file and how to do it in Turbotax will be much appreciated.

Thanks.

[JohnB5677]

Your resident state is SC because that is where you lived at the end of the year.

• You were a part year resident of MD.
• Use your W-2 to allocate the state percentage of income.
• The portion earned while living in SC is taxable in SC.
• If 100% is allocated to MD, you will get a credit for taxes paid to other states on the SC return.
• Process the MD return first.

[arun1rain]

Thanks for the response. Let me try again and do the following:

1. Do a part-time resident tax for MD. 100% wages were in MD.

2. Do a resident tax for SC for the last three months.

and check if (a) MD takes out the locality (county and city) tax for the first nine months. and (b) if SC credits for MD taxes for the last three months.
I will post an update.

Thanks.

[MaryK4]

If you did not work in Maryland the last three months, you would not report the income to Maryland.

Your South Carolina tax return is resident or nonresident for the entire year.  

If you moved to South Carolina during the year, you are considered a part-year resident. As a part-year resident, you may file as a full-year resident or a non-resident. 

If you file as a part-year resident, you will claim all of your income as though you were a resident for the entire year and take credit for any taxes paid in another state. As a nonresident, you will report only income earned in South Carolina. Your deductions and exemptions will be prorated by the same percentage as your South Carolina income compared to your total income. 

@arun1rain