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Level 7
April 16, 2025
Solved

Maryland credit for other states' work

  • April 16, 2025
  • 3 replies
  • 18 views

Maryland resident worked in Vermont and Virginia as well as MD. Form 502CR does not seem to populate by itself. Any suggestions appreciated.

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Best answer by dascpa

Maryland and Virginia have reciprocity so there would be no Maryland other state credit beause it doesn't apply. If there was VA withholding, apply for a refund.  It's all taxable to MD. After you complete the Vermont tax return, and there "is" tax generated to VT the Maryland credit will appear on the 502CR automatically, for both state and local tax calculations. You will need to attach a copy of the VT return to the MD return.  If there is no tax in VT (for example, below the mininum level) then there would be no MD credit for out of state taxes.  If you've done it properly go back to the VT return and then back to the MD return.  It could be your calculate automatically is turned off.

3 replies

dascpa
dascpaAnswer
Level 11
April 16, 2025

Maryland and Virginia have reciprocity so there would be no Maryland other state credit beause it doesn't apply. If there was VA withholding, apply for a refund.  It's all taxable to MD. After you complete the Vermont tax return, and there "is" tax generated to VT the Maryland credit will appear on the 502CR automatically, for both state and local tax calculations. You will need to attach a copy of the VT return to the MD return.  If there is no tax in VT (for example, below the mininum level) then there would be no MD credit for out of state taxes.  If you've done it properly go back to the VT return and then back to the MD return.  It could be your calculate automatically is turned off.

GretaAuthor
Level 7
April 17, 2025

Thank you! But I now discover from client that he was part-year MD and part-year VA! I know how to do part-year VA, but I need help with part-year MD. It has only two choices, resident and non-resident. I apologize for my ignorance, I will read their Instruction Booklet!

dascpa
Level 11
April 17, 2025

The concept of other state tax credit would not apply to part year residents. You apportion the income to each state and the calculation of limited dependent deductions and/or limited standard deduction would be automatically calculated by P.S. for you.