I moved from MD and retired on 31 Dec 2017. A lumpsum payment of unused leave was made in April 2018 and deducted MD taxes. Do I owe MD taxes? How do I get a refund?

[DanielV01 · Accepted solution]

You do not pay MD tax on this.  Although this income was derived from when you were an employee in MD, you were no longer living in MD at the time you received it.  You will file a nonresident MD return with zero income.  You will probably have to mail in your return, and you will want to attach the state tax return for where you now live (because the income is taxed in your resident state).  If you moved to a state that does not have an income tax, you would submit proof of your move that shows you received the income well after you moved.

[scott4]

I have receipts and documents associated with my arrival to establish residency in SD.  I will submit them with the non-resident tax forms.