State tax for another state

Forum|Forum|3 years ago
February 12, 2023
1 reply
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I live in MD and work as a Realtor. I am also still affiliated with my old brokerage in PA. I had one sale this year in PA. I'm trying to file my PA return, but it's adding ALL of my income, not just the $3000 made in PA. How do I correct this? Turbo tax is saying I owe PA $1600 and this can't be correct for one $3000 sale.

DavidD66

As you go through your Pennsylvania non-resident return, you will come to a page with "Nonresident business compensation". Click on YES and then enter the information for your business in MD and click on Continue. The next page will allow you to allocate your income, so that you are only reporting and paying tax on the Income earned in Pennsylvania. As a Maryland resident, you have to pay tax on 100% of your income, even if earned in another state. However, Maryland will give you a credit for tax paid to Pennsylvania. For the credit to properly calculate, you should prepare your non-resident return first, and then your Maryland resident return.

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