filing nonresident taxes in Maryland after sale of primary residence

[lynno]

We no longer live in Maryland but in 2025 we sold what had been our primary residence there. We applied for and received the MD state tax exemption, and have a signed copy of MW506E showing that we obtained a full tax emption for the sale. The sale is indicated on the federal return but doesn't seem to be indicated anywhere in the Maryland NR return, the way Turbo Tax has filled out the forms. I called the Maryland tax help line and was told that I don't need to include a copy of MW506E with my return, so I'm unclear on whether the MD NR return has been filled out correctly with Turbo Tax. Thanks for any guidance anyone can provide. 

[MaryK4 · Accepted solution]

The MW506E exemption is for the withholding requirement when you sell property.  Maryland follows the federal exclusion from the gain of your primary residence, so the amount for the federal is the same for Maryland.  TurboTax will transfer the taxable amount (if any) to your Maryland return, so your Maryland tax liability will be based on that amount.  

ONLY IF there is a taxable gain that was not excluded; it would be on your 1040 Line 7a, and in the Maryland section section of TurboTax, you would be asked to allocate the amounts from the federal return.  

[lynno]

And since 1040 line 7a doesn't show any capital gain, it sounds like the MD forms are probably filled out correctly. Thank you for your help!