Case: I have a new client who is a Virginia resident. For tax year 2024, all of his and his wife's income—W-2 wages, interest, capital gains, and K-1 income—is from Virginia. However, he purchased and began renting out a property in Maryland in 2024.

Questions:

1. How should the Maryland rental income be reported for state tax purposes?

2. Should he file a Maryland non-resident income tax return (Form 505)? Are there any specific issues or common pitfalls I should watch out for when preparing Form 505? Is there a way to double-check the form to ensure it’s completed accurately?

3. Can he claim a credit for taxes paid to Maryland on his Virginia resident return (Form 760)?

Thank you very much!