Do I have to pay Maryland taxes if I have a permanent address in Texas and live there?

Forum|Forum|1 year ago
June 17, 2024
2 replies
0 views

I filed my taxes with a Texas address, but was still required to pay Maryland State Tax. Why?

TurboTax Deluxe Online

xmasbaby0

Employee

Please explain clearly how MD is involved. Did you work in MD---physically work in MD?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

tammygoweAuthor

I lived in MD before joining the Army in 2018. In August of 2023 I purchased a house in Texas and that is now my permanent residence.

SteamTrain

Employee

And...

1) Are you in the military, with HOR as being MD, but posted in Texas for now?

2) or a college student in TX, and a dependent of parents who live in MD?

3) moved to TX from MD during 2023?

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

tammygoweAuthor

I am in Army and MD was my HOR. I purchased a home in Texas in August of 2023, but when I changed my address on my tax forms, I still had to pay MD taxes?

SteamTrain

Employee

@tammygowe

In spite of buying a house in TX, you are still considered a legal resident of MD, and taxed by MD.....until such point in time that you change your State of Legal Residence (SLR) to TX. with Army Personnel/HR and Finance....After which you will be considered a resident of TX for tax purposes.

In the year you legally change you SLR to TX (AND the Army accepts it), you will have to file a Part-Year tax return for MD, declaring all your income before that date as being subject to MD taxation. In the tax software, you will use TX as your SLR for that year onward, and no longer use your HOR for tax purposes.

In order to change your SLR to TX for tax purposes, you will need to file a form DD-2058 to the Army, showing that you have taken steps to change your SLR....registered to vote, changed banks to local branches, registered vehicles...etc...

Read the following, but also ask questions in your Unit's HR/Personnel and Finance staff, as there may be steps the following FAQ does not cover.

___________________________

What is my military state of residence? (intuit.com)

____________________________

IF YOU DID ALREADY FILE YOUR DD-2058 LAST AUGUST??:

Then, if the Army accepted it back then, you owe Part-Year MD taxes for 2023 on all your income before August (or whatever date the DD2058 was approved in 2023) and in the software you indicate that you were a TX resident at the end of 2023, and that you "Moved" from MD on the date your DD2058 was approved.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*