Maryland income tax question

[alexey]

I'm filling out a 502 form for Maryland as a part-year resident... It has a FROM and TO field to specity residency dates. The thing is, I moved twice last year. One move was from MD to DC in April, and the other back to MD in November... There isn't enough space on the form to insert both timeframes. What should I do?

[mtyquinn]

I am a professional tax preparer. Even though it does not exactly show what happened to you during the year, I would recommend that you add the time from you move back in to MD (November on) to your time originally in MD (January - April). This would have you showing approximately 6 months in each jurisdiction.


So let's say you moved out of MD on April 15 and then back to MD on November 20. You could show your dates of MD residency as January 1 - May 26. You do need to be precise as to the number of days in each jurisdictions because your deductions and exemptions will pro-rate.

[PleaseBlitz]

I am a professional tax preparer.


Noted. :)

[alexey]

I am a professional tax preparer. Even though it does not exactly show what happened to you during the year, I would recommend that you add the time from you move back in to MD (November on) to your time originally in MD (January - April). This would have you showing approximately 6 months in each jurisdiction.


So let's say you moved out of MD on April 15 and then back to MD on November 20. You could show your dates of MD residency as January 1 - May 26. You do need to be precise as to the number of days in each jurisdictions because your deductions and exemptions will pro-rate.
Thank you for the response!

Is there a difference between saying I lived in MD in the beginning of the year vs. at the end, i.e. Jan 1st - May 1st or Sep 1st - Dec 31st? I ended the year living in Maryland, does that make any kind of a difference?

I'm not sure what it means for my deductions and exemptions to pro-rate... Are you saying those things are calculated based on the number of days I lived in each state?

Thanks again for your help! :notworthy

[mtyquinn]

No there really is no difference whether you lived in MD at the beginning or end of the year. The pro-ration is based on the number of days you lived in each jurisdiction. For example, the standard deduction in MD for a single taxpayer living in MD for the whole year is $2000. If you lived in MD for 91 days (25% of the year) then your standards deduction would be 25% of $2000 ($500). The personal exemption amount for the whole year is $2400, if you lived in MD for 91 days (25% of the year) your exemption amount would be $600.

Hope this helps

[Sarge]

Quit trying to scam the Socialist Union of Maryland with all that diversionary move stuff. Just give them all the money in your account and you should be good to go

[da#1skinsfan]

Interesting, I am in a similar situation, part year MD part year PA. I found that MD taxes are much higher.

One thing I want to know, now that I am filing as PA, will I get a letter in the mail saying hey, your insurance, ID, etc needs to be changed over to PA?

[mtyquinn]

MD is a very high taxing state. PA is definitely lower but unlike MD you often have to file a local return in addition to the state return. You may get a letter directing you to change your ID, etc. Each state is different but most states expect you to change over your ID, etc within 6 months to establish residency.

[da#1skinsfan]

Ugh...not looking forward to that. You know whats funny, is I dont get a local tax in PA, but I DO get a hefty local tax in Montgomery County, MD.

You are right though, the Philly wage tax for one is HEFTY.

[mtyquinn]

MD uses a piggyback system where you have state withholding that encompasses both the state and county taxes. Be glad you don't work in NYC and live in PA because then you would also have to file a NYC non-resident return.