Hello,

I came across a similar individual tax situation as the one posted above. The taxpayer is a Virginia (VA) resident and received a Schedule K-1 (Form 510/511) from Maryland (MD), which is the only source of MD income reported.

Here are the key details from the MD K-1:

• Letter A - Line 1 and Line 2, Member Income: -$30,000 (negative, same as federal K-1, Box1 number)

• Letter B / Line 3 - Net Decoupling Modification: $35,000 (positive)

I’ve followed the helpful guidance shared earlier, but I’d appreciate some clarification on the following points:

1. Should the Maryland return (Form 505) reflect a tax due based on the K-1 information?

2. On the Virginia return (Form 760CG), should a credit be claimed for taxes paid to Maryland?

Thanks so much for your continued guidance and support! Wishing everyone a great week ahead.