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Level 1
August 27, 2026
Solved

Maryland non resident refund denied... HELP!!!

  • August 27, 2026
  • 4 replies
  • 77 views

I have a client returns from 2024 and 2025 which the state of Maryland is refusing to issue the refund and it appears to be with how the software is handling the non-resident income. The Customer is a VA resident but had one W2 from MD. State of VA taxes all the income hence I filed a non-resident return for MD. Apparently it had to be a paper return because when I check the box which says not required to file, It doesn’t let me e-file however the refund is denied saying there is no MD income on the filed MD return. Looks like checking that box zeros out MD income making it possible for a full refund to be issued for taxes withheld. 

I need to file an amendment to get the customer’s refund- I’ve done it before and didn’t get good results hence I believe I’m not doing something right. ProConnect support hasn’t been helpful either. Has anyone been through this or have any idea on how I can effectively file this to get the customer’s refund approved?

Best answer by sjrcpa

You may be able to complete and file the return om MD’s website. Or fill out the forms manually and paper file the return.

4 replies

sjrcpa
Level 15
August 27, 2026

First pull the MD Nonresident return instructions to see how the return is supposed to be filled out in this situation. Only a few lines get filled out.  VA and MD have a reciprocal agreement for wages, so it is correct that no MD income shows on the MD 505.

The more I know the more I don’t know.
bessbAuthor
Level 1
August 30, 2026

Thank you so much for your response. ProConnect support team eventually confirmed that the software does not support the reciprocal agreement between MD and VA. So I have to figure out a way of re-filing outside of ProConnect. Not too happy about that. Not sure where to file without paying an arm and a leg for the full application.

sjrcpa
sjrcpaAnswer
Level 15
August 31, 2026

You may be able to complete and file the return om MD’s website. Or fill out the forms manually and paper file the return.

The more I know the more I don’t know.
bessbAuthor
Level 1
August 31, 2026

Great idea, thank you so much!