State Taxes

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I am a graduate student and my permanent residence is in Maryland, but I have only had income and withheld taxes in Oklahoma. Do I need to file Maryland State Taxes or only Oklahoma?

AmyCAnswer

Alumni - Intuit

My general question I am trying to figure out is why do I owe more when I add in Maryland. What I did last year in TurboTax was do my Federal form and then do my Oklahoma form and then Maryland. What has happened the past two years is that When I finish Oklahoma i have an amount as expected return. Then when I complete the Maryland form this amount changes drastically. From the discussion above I understand Maryland has different tax rates.

How can I figure out what additional amount Maryland is owed so for 2022 I can adjust my withholdings?

You can see this year's tax brackets for MD on pages 25-31. Locate your income and then plan for that amount of tax, then subtract out the OK credit. Here is the OK form with tables on pages 28-39. Check your income and withholdings through the year, so you can adjust as needed. You may want to make estimated payments to MD.

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BillM223

Level 15

Generally, you owe tax to the state where you live, and to the state(s) where you work.

Since you worked in Oklahoma, you would file a return there. And since you live in Maryland, you would file a return there. Note that you should enter Oklahoma (non-resident) return first, then your Maryland data. This allows Maryland to calculate and apply a credit for taxes paid in Oklahoma.

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connormbruceAuthor

Level 2

When you say "live" do you mean am a resident of because I don't physically live in Maryland. I live and work in Oklahoma. Due to state regulations, I cannot change my address and become a state resident of Oklahoma as I am only here for school, but I am here 12 months a year. Last year when I went to file I was getting a large return from the state of Oklahoma and then when I added a Maryland return I owed money. I am confused on why Maryland would be taking much more than Oklahoma when I never worked in Maryland.

BillM223

Level 15

"Domicile" is a matter of facts and circumstance. Your domicile (your permanent residence) is where you plan to return to after you are finished doing whatever you are doing out of state. It is where you have a permanent address, an landline (as if), your drivers license, your voting registration, and so on.

Your domicile remains what it is until you take positive steps to change it. In your case, this means, rent/buy property in Oklahoma, getting a landline there ( 🙂 ), registering to vote there, and telling all your friends that you have moved there.

On your last year's return, did the Maryland return show a credit for "Other state taxes paid" (i.e., Oklahoma's)?

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