Where do I enter MW506NRS?

[whymes]

 I reside in Ohio. I owned a farm in Maryland. I sold the farm. The Title Company used form MW506NRS (Maryland Return of Income Tax Withholding for Nonresident Sale of Real Property) and took 7.5% of the proceeds. Where do I report this?

[Hal_Al]

You probably have to file a MD non resident return to report the sale and claim a refund, if any.  

In TurboTax (TT), enter at:

Federal Taxes Tab

Deductions & Credits

-Scroll down to:

--Estimates & other taxes paid

   -Other Income taxes

On the next screen, scroll down to

     -Other income taxes paid in 2018  

       -  Withholding not already entered on a W-2 or 1099
         -On the next screen, enter the amount of withholding and the state

You may want to mail your MD return (rather than e-file) so your can attach a copy of the form showing the withholding. 

If you itemize on the federal return, you should still enter the state withholding to  get the deduction.

[Hal_Al]

I'm not from MD and  not familiar with their specific procedures. The above is a generic state answer. But, an internet search reveals there may be a special (and easier) form for claiming a refund. You may be able to avoid the TT fee for an extra state return.
<a rel="nofollow" target="_blank" href="https://forms.marylandtaxes.gov/18_forms/MW506R.pdf">https://forms.marylandtaxes.gov/18_forms/MW506R...>

[BumbleBall]

@Hal_AI I couldn't find much help on the subject at the link you provided.  Just takes you to the Comptroller of MD's website.  Your earlier answers were better.  Thanks !

[BrittanyPreparesTaxes]

the above information is incorrect. State tax withholdings DO NOT get entered into Federal information section. they need to be entered on the state return walk though. 

To enter the MW560NRS for an Individual it would be entered as an estimated tax payment. This is found in Turbotax starting within the Maryland return:

• Answer all questions and file as a "Non Resident".
• you will come to the "Take a look at Maryland credits"
• scroll down and look under "other credits" for "Maryland Withholding on Real Estate Sales".
• click start and answer the questions. 

Efile the MD return, do not send a copy of the MW506NRS. These filing instructions can be found on you Copy C of your MW560NRS.

[trailbound]

There is no section called "Maryland Withholding on Real Estate Sales" in TurboTax Premier for a Maryland state return under the Credits section. This seems to be completely missing from 2022 TurboTax.

[DaveF1006]

Enter this in the following manner.

1.  Go to federal>deductions and credits
2. -Estimates & other taxes paid>other income taxes
3. Go to Withholding not entered on a W2 or 1099.
4. Then enter the amount in State Withholdings after selecting Maryland as your non-resident state
5.  Be sure to file a Maryland non-resident return to either receive a refund for excess taxes paid or to receive a  credit in your resident state return. Be sure to prepare the Maryland non-resident return first.

@trailbound 

[cubuffalobarb]

Is Marlyand Income Tax witheld from MW506NRS entered as estimated tax payments on line 44 of form 505?

[HopeS]

Since you are a resident of Ohio who sold real estate in Maryland, you will need to file a resident return for Ohio and a non-resident return for Maryland. You will be able to claim the credit for the taxes withheld (MW506NR) on the MD non-resident return.  First, you will enter the sale of the property (Farm)  on your Federal return. Review the link below to see how to enter the sale of the farm.   Please ensure the gain from the sale of the farm flows to your MD Non-resident return.

You want to do is make sure you've filled out the Personal Info section correctly:

1. With your return open, select My Info in the left-hand menu.
2. Then, on the Personal info summary screen, scroll down to Other State Income, and select Edit.
3. At Did you make money in any other states? the question, answer Yes, and make sure your nonresident state(s) are selected from the drop-down.
4. Select Continue to return to your Personal info summary.

After you finish your federal return, you'll automatically move to the State tab, where you'll see your nonresident state(s) listed in addition to your resident state.

Tip: To ensure accurate calculations, always complete the non-resident return first if filing in multiple states because your resident state might give you a credit for any taxes paid in that situation.

You will enter the MW506NR as follows:

1. Go to federal>deductions and credits
2. -Estimates & other taxes paid>other income taxes
3. Go to Withholding not entered on a W2 or 1099.
4. Then enter the amount in State Withholdings after selecting Maryland as your non-resident state

While completing the Maryland non-resident return you will come to this page (see screenshot below) in the State Interview for MD.  Click on Maryland withholding on real estate and enter the amount shown on Form  MW506NRS.

See the link below relating to the Sale of the Farm:

Sale of Farm

@cubuffalobarb 

[Edited 4/5/2023|9:09AM PST] @cubuffalobarb