@ajitv123 Somehow I ended up with two TT accounts, but this is morpate.
Yikes, that's even worse than I had to deal with. I am not a CPA, but you may want to look into when income is considered "earned" in MD. Depending on the law and your particulars, the 2/1 paycheck may be considered income you earned while you lived in MD, and thus you would only need file form 502.
If not, and you have to file 505 and 502, what I did was, through the Turbotax DOWNLOAD only (not online)
1. Create my federal return
2. Create my resident return (in my case California)
3. Create my part-year resident return for MD. (form 505)
I had to do 505 first, because the non-resident taxes from MD had to be calculated in order to properly determine my other state tax credit in CA. That won't apply to you, since you will have no credit to claim in your new state.
I then filed the Federal and CA returns (NOT MD505), and saved the file (return 1). Then, I deleted the CA and MD 505, and created a new MD 502 return, and filled it out. I saved the new return (return 2) with the 502 as a new file.
Then, I printed the 505 from the 505 return and the 502 from the 502 return and filed by paper. In my case, I return to MD regularly, so I filed in person so the desk clerk could check the return was complete and I could get a receipt.
Turbotax download was required because
(A) I could not get the online software to allocate the W2 MD withholdings properly (which were to one return until I had no tax liability and the rest to the other return). The online software will allocate 100% of the MD taxes on your W2 to EACH return (so overclaiming a refund), and I couldn't change it.
(B) I couldn't get the online software to allocate my exemption, which has to be prorated based on percent of income earned while a resident and non-resident (and for which the instructions are entirely unclear in the MD tax booklet)
(C) The online software doesn't let you make a copy of a return and then modify it. The download let me file the federal and CA, and then save a copy and add the 502 on the copy only, which saved time and let me import my federal return.
I couldn't file the 502 online directly because of my tax situation. I was also told by the state of MD that unless you efile BOTH returns simultaneously, you are at risk of MD not associating them together as one return and rejecting the second return because you've already filed.
In 2020, turbo tax won't know that you filed two returns, and so will calculate the taxes paid in 2019 incorrectly (important if you itemize), so keep careful records of the total taxes you pay MD this filing season.
In the end,
@dmertz predicted what I would have to do last year and what would happen this year with stunning accuracy.
