Owe state taxes?

[nicklowsoccer]

Im in the military. Paid $731.17 in 2016. Why do I owe $420 to MD?

[DanielV01 · Accepted solution]

It depends.  Maryland does tax active duty military income (like the Federal Government does) to Maryland Residents serving within the 50 states.  If stationed overseas, the first 15,000 is excluded from Maryland taxable income.  If you are a Maryland resident, therefore, there are two possibilities.  The first is that not enough tax was taken out of your income.  The second is that you need to enter into the Maryland state return the amount you made stationed overseas, if that applied to you, to have that income excluded. 

However, if your state of record with the military is not Maryland, and you are only stationed in Maryland, you do not owe Maryland any tax.  You will need to go to the Personal Info tab and select “no” for the question “Did you work in another state besides [state of record]?” You also mark “no” to the question if you lived in any other state besides your state of record.  Maryland will be removed from the return and you will owe them no tax.  Please note this FAQ regarding your residency:  https://ttlc.intuit.com/replies/3302301