I work and live in Maryland but owns a property in VA, how do I claim the tax credit? Like can I claim it on my Maryland tax return since I am not filing VA tax return?

[meihuahe728]

I am not returning out the VA property. I let my parents live there rent free.

[Vanessa A]

Did the property in VA make you any money?  Did you rent it out to someone else prior to your parents?  If so, then you will need to file a VA return to report the income from the property.  Income from property would not be subject to any reciprocity agreements between the 2 states. 

If you are asking if you can claim a deduction for property taxes.  No.  You cannot claim a deduction for property taxes paid to VA on your MD return.

If this property does not produce any type of income, then as far as MD is concerned, the property is not relevant and not to be entered on your return. 

[meihuahe728]

Thank you Vanessa. No, I bought the house so my parents can live there without worrying about rent  because they make minimum wages. 

I see about that I can’t claim the tax credit. The sucks hahaha when I lived in VA (rental with my fiancé), the mortgage property tax provided some tax credit.  Just out of curiosity, do you know had I work and live in VA and claim the property tax credit my my vA tax return, how much would I save? Trying to see how much I am lossing back moving to MD just to be close to my work, wondering maybe I should move back to VA hah thanks!!

[meihuahe728]

Another question. Can I fill a VA tax return with zero income and add the deduction for the property tax? So potentially getting some tax refund back from VA?

[DawnC]

You would not be able to get a refund from the state of VA for claiming a property tax deduction.     All it can do is reduce your tax, but since you don't owe anything there, there would be no benefit in doing so.

[meihuahe728]

So it would be best for me to move back to VA so I can take advantage of the deductible for the property tax I pay then. Since now I am basically loosing money from not being able to claim it. 

[DawnC]

No, you are not losing money.   You can deduct the property taxes on your federal return if you own and pay the property tax on the VA property.   TurboTax will transfer your deductions to your MD return.   There is no need for you to file a VA return.   See these IRS Q and As - I paid mortgage interest and property tax on a second home; is it deductible?  

[meihuahe728]

Yea thank you so much! I was reviewing my tax return from last year and just realized this too. Thank you so much!