Solved: Will be living in CT for work for at least a year. Primary home in MD
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Will be living in CT for work for at least a year. Primary home in MD

I will be renting a small apartment in CT for at least the next year.  My main residence is in MD & I will be coming home every weekend to my home in MD. Which state will the IRS consider my primary residence? CT or MD? My employer will be giving me the money to cover my rental as well as a per diem.  Will this added money be considered earned income and then taxable?

Also, how does my wife factor into this as she will be remaining in MD during the whole period. I am head of household (ie: Married filing jointly) and she only works part-time working from home.

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Level 10

Will be living in CT for work for at least a year. Primary home in MD

Based on your facts, it would appear that MD will continue to be your state of residency (domicile).  As such, you will continue to file as an MD resident.

You will also be required to file a CT return, but you would file this as a nonresident.  I would also assume that your employer would be withholding CT tax as well.

When it is time to complete your tax returns, complete your federal first and then CT.  Finally, complete your MD return and include form 502CR.  Your MD return will report ALL your income, however, form 502CR will provide a credit for taxes paid to other states, in your case CT.   This credit minimizes your paying tax on the same income twice. You will also be required to attach a copy of your completed CT return.  See the attached discussion from the MD website.

http://taxes.marylandtaxes.com/Individual_Taxes/General_Information/Tax_Credits_and_Deductions/Incom... II - Reciprocal States

*A reminder that posts in a forum such as this do not constitute tax advice.*

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2 Replies
Level 15

Will be living in CT for work for at least a year. Primary home in MD

You are NOT head of household if you are married ... you should file a joint return. HOH is a single person filing status only.
Level 10

Will be living in CT for work for at least a year. Primary home in MD

Based on your facts, it would appear that MD will continue to be your state of residency (domicile).  As such, you will continue to file as an MD resident.

You will also be required to file a CT return, but you would file this as a nonresident.  I would also assume that your employer would be withholding CT tax as well.

When it is time to complete your tax returns, complete your federal first and then CT.  Finally, complete your MD return and include form 502CR.  Your MD return will report ALL your income, however, form 502CR will provide a credit for taxes paid to other states, in your case CT.   This credit minimizes your paying tax on the same income twice. You will also be required to attach a copy of your completed CT return.  See the attached discussion from the MD website.

http://taxes.marylandtaxes.com/Individual_Taxes/General_Information/Tax_Credits_and_Deductions/Incom... II - Reciprocal States

*A reminder that posts in a forum such as this do not constitute tax advice.*

View solution in original post

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