Client Paying Taxes MD but living in Connecticut for 2022- How should I filed the State returns?

[TaxButterfly]

Hello Tax Professional,

I need your help!

I have a married client couple they are filing joint on the federal return for 2022, however they do not work or have any  income from Connecticut. The major earner is the husband, looking at is W2s his home address is listed in MD, paying a total state taxes  in MD of $13,411, however him and his family purchased a new home and moved to Connecticut in March of 2022 . He informed me that his primary residence is in Connecticut.  Can you guys give me some insight on how best to handle this situation? 

I have completed a federal Married filing joint on the Federal, but I am not sure how to proceed with the state side for this client.

Thank you!

[dkh]

You would need to file a part-year Maryland and part-year Connecticut.  

You say there is no income from Connecticut so did your client earn all his money in January-February while living in Maryland ?   Or does your client work from home for a Maryland company ?

[TaxButterfly]

Good Morning,

Thank you for responding. 

All of his income appears earned in  MD from January - December 2022. The address on his W2s is listed in MD. But, he purchased a new home in March 2002 - living in Connecticut and MD. The wife lives 100% in Connecticut.

I agree of filing a part-year for Maryland and part-year for Connecticut. But, what got my attention is that on the Connecticut state return, it was showing that the client would owe approxiately $ 12,000K to Connecticut. Yikes!!!

Any suggestions?? 

[dkh]

Address on W2 doesn't matter.  What matters is where the client lived.  Yes, client will most likely owe to Connecticut and get a refund from Maryland.      If this client is still employed by same company, hopefully they have changed address and state withholding.