How is "Non-Maryland Income" calculated for part-year resident?

Forum|Forum|6 years ago
January 16, 2020
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Every reply I've seen so far is not sufficiently accurate.

I lived in Maryland for a month and a half before moving. I have two W2s - one for PA, where I moved, and one for MD.

Which of the following is my "non-maryland income" based off of:

1. the Maryland "State wages, tips, etc" (W2 Box 16) subtracted from:

Gross pay
W2 Box 1 (wages, tips, other comp)

2. State wages, tips, etc for the non-Maryland state? (W2 Box 16)

I can't find any straight answers about what exactly is "non-maryland income", and most of the links to Maryland's tax website from Google are broken. The instruction PDFs are also ridiculous complex and basically require filling out the entire 502 form, which I thought is what Turbotax is supposed to be helping me do. The fact that TurboTax doesn't elaborate or calculate what goes into this field is pretty disappointing, considering they know the dates I lived in each state.

Any clarity or help would be greatly appreciated. Thanks in advance.

TomD8

Employee

To answer your question, we need to know the state(s) in which you worked, as well as the states where you lived.

Where did you work when you lived in MD?

Where did you work after you moved to PA?

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

ccrook2020Author

I worked in DC while living in MD. I still work for the same company, but work remotely from PA now.

mglauner

Your 'non-Maryland income' is any income NOT on a W-2 with code MD in Box 15, or income earned while you were not a Resident of Maryland.

If the two-letter state abbreviation is not shown on your W-2 in Box 15, you can add it when entering your W-2s into TurboTax. This alerts TurboTax what state the income in Box 16 belongs to.

If you paid taxes to DC while living in Maryland, you will need to file a Non-Resident return there, and get credit on your Maryland return for tax paid to DC.

You are correct that you may need to to do some calculations if your two W-2s don't specifically allocate the Maryland and Pennsylvania income with MD and PA in Box 15.

Either of the two methods you suggest would work. Subtract MD income from total, and balance is 'non-Maryland income'.

Click the link for more detail about Filing Part-Year State Returns.

Al816

Thanks for your answer.

Question with my scenario: I moved from DC to MD on Aug 12, 2019 and worked at the same company throughout 2019. So I have a W2 that shows my DC state wages/tips (in Box 16) and and another W2 that shows my MD state wages/tips (in Box 16).

However when you add DC wages/tips (Box 16) with MD wages/tips (Box 16)...the sum do not equal the

total wages, tips, other comp. in Box 1...and in fact the sum is about $6k less than that of Box 1.

So going back to the original question, should I be using the DC-Box 16 as my "non-Maryland income"? Or the difference of Box 1 and MD-Box 16?

Thanks!

BillM223

The question is "why do the two state wages numbers (box 16) not add up to the amount of wages in box 1?"

You say that you have two W-2s from the same company. Are the amounts in box 1 of each W-2 your total wages for the year (including from both states)? If so, then this presents a problem, in that if you enter both of these, your federal income will be doubled.

Or is the Box 1 amount in each W-2 supposedly the amount of wages earned in that state? If so, why would the box 1 amount be different from the box 16 amount?

Normally, an employer would give you one W-2, with two rows of information entered on boxes 15-17, one row for MD and the other for DC. I wonder why your employer did not do that. Are you working for different divisions of the company?

My answer is tempered by the fact that I am not sure what your employer intended by creating these W-2s. Could you give us sample numbers of the W-2s that aren't real but are sort of representative of what you got?

If you can, please give us for each W-2:

Box 1

Box 3

Boxes 15, 16, 17

Thanks.

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