I lived in MD until March, moved to AL from March-September, & moved back in MD from September until present. How do I file this for residency & complete in TurboTax?

[allykat994]

I worked in Maryland for the months above, and I worked in Alabama for March-September. So I have income tax in both states.

I assume it is a part year resident for MD, but I am unsure for AL. Additionally, how is this possible to do in TurboTax - I can't figure out how to do it when I left the state and came back in the same year.

[DanielV01 · Accepted solution]

File Alabama as a nonresident.  You will file full-year resident for Maryland.  You were in Alabama too short of a time to have established Alabama as a domicile state (move was not permanent).  So, because of Maryland resident rules, you are at least a statutory resident of Maryland (were there more than 183 days).  (Maryland really is your domiciliary resident state as well).

This simplifies your tax return from the standpoint that you file Maryland as a resident and Alabama as a nonresident (which is not difficult to do in TurboTax).  There is an implication:  Maryland does tax the income earned in Alabama, but will issue a credit for taxes that you pay to Alabama on that income.  You will want to prepare the Alabama return first so that TurboTax computes your credit.