Maryland Tax Return

Forum|Forum|5 years ago
January 25, 2021
9 replies
53 views

I have a PA resident and the software is showing tax in MD, a reciprocal state. I understand the special NR tax but not the income tax. Has anyone found a way to do this without overriding?

ProSeries Basic

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sjrcpa

Level 15

Is it W-2 income?

Or some other type of income?

The more I know the more I don’t know.

J

Joe MeatAuthor

Level 2

Yes it is from a W-2 and the software calculates tax for MD. There is withholding for the special nonresident tax and that is correct but I am also getting income tax. I could just not file a MD return. Let them ask for it later as no tax is due. .

dascpa

Level 11

A PA resident is not taxed on their W-2 income in MD and visa versa. If the W-2 lists MD withholding the program will not understand and you will have to file for a refund in MD showing it all to be taxable in PA. You do this by starting with the Information Worksheet and reporting a nonresident state and overriding the amount to be taxed in MD. If however there is income from anything other than W-2 wages then there is tax in MD as the reciprocity only applies to wage income.

T

Terry53029

Intuit Community Champion

If your employer is withholding taxes from the state you are working in, and you live in a reciprocal state you need to have employer correct W2 so it doesn't happen next year. There is no need to override anything in the program, as you just file a non resident return for the state that taxes were withheld from, and a resident return for where you live. At the bottom of the federal worksheet part X1 is the info for nonresident tax info.

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