How to E-file 1040 with Multiple states (Non-resident State)

[workhard2022]

Hello, Can anyone please help me with this Efile non-resident state return question:

I have a client who lives in VA for the entire 2022 but one of his W-2s has Maryland withholding. So I want to Efile his state tax returns as a VA resident and MD Non-resident. But after I input all client's tax documents, I received the following three diagnostics which prohibit me from Efile the client's MD state return. I had a similar situation before when I use TurboTax and HR block, they all can Efile VA residents, and MD Non-residents at the same time. Why can't Proconnect software do that? I wasn't sure if I missed anything with Proconnect inputs, or if it just already has this paper file issue very long with Proconnect.

I have these three Proconnect Diagnostics:

(1) Income from Maryland sources is zero. In order to prevent the tax from being computed for this return, the checkbox labeled "Not required to file Maryland return", in the "Maryland Part-Year/Nonresident Info" input screen should be check-marked.

Question Here:  how do I know if I should check the box "Not required to file MD return"?

(2) Nonresident returns that had taxes withheld in error are not currently supported for electronic filing in the tax program. Please file this return on paper.

(3) Due to a reciprocal agreement with Virginia, wages, salaries, tips etc., have been excluded from the Maryland return.

Also, If I have to paper file this client's MD non-resident return, Proconnect produces an MD Form 505, but the MD tax department requires  "Additionally Form505NR (MD tax computation) included".  How can I get that?

Any thoughts or advice would be very appreciated!

Thanks!

[The-Tax-Lady]

You usually have to prepare the other state returns before doing the resident state return.

In this case though, the software is prohibiting you from e-filing the MD return because MD has the reciprocal agreement to not tax residents of the other bordering state VA, and should not be withholding MD tax in the first place, so as far as the software is concerned, there is no MD income, so probably checking the "not required to File" box might get you in there, and provide the 505 NR form you need

You would be filing for a full refund on the MD tax, which Intuit appears to not to support in the e-file software, and is forcing you to paper file it for the refund. 

There will not be a credit to VA for taxes paid to other states because the taxes withheld will be refunded in full by MD.

If that doesn't work, you could try filing it directly on the MD website, if available, or print the form you need from there and paper file it with the return you get from Intuit.