3111099
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Why do we owe taxes to Maryland when we file the Maryland non-resident 505NR, despite receiving a K-1 indicating a loss?

My company is registered in VA, so I received a W-2 and a VA K-1 (profit). My husband's company is registered in MD, and he received a W-2 and a MD K-1 (loss) last year. We have been living in VA since 2018. Therefore, we need to file both Virginia resident and Maryland non-resident taxes. When I prepared the MD Form 505NR (non-resident income tax return), it indicated that we owe taxes to Maryland in the amount of $1500 or more. It just doesn't make sense to me since my husband's K-1 shows a loss. To my understanding, our W-2 and my K-1 income will be reported on Virginia tax forms, and only his K-1 will result in tax liability to Maryland if it has income. Now, since his K-1 shows a loss, there shouldn't be any taxes owed to Maryland. Am I right?

 

I don't know if I did something incorrectly. If not, could someone please help me understand it if TurboTax is actually correct?

 

Thank you very much!

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Why do we owe taxes to Maryland when we file the Maryland non-resident 505NR, despite receiving a K-1 indicating a loss?

TomD8
Level 15

Why do we owe taxes to Maryland when we file the Maryland non-resident 505NR, despite receiving a K-1 indicating a loss?

On the Maryland K-1, did you enter the loss as a negative number?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question