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February 2, 2021
Question

I have to file indiana taxes which is fine...I need to file state and local taxes for maryland... Maryland state and local taxes are combine. How do I do this for my Maryland state and local tax on he

  • February 2, 2021
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1 reply

February 2, 2021

I am assuming you live in Indiana for the full year.  Please comment if this is incorrect.

 

Assuming you live in Indiana, but have income sourced from Maryland, you will need to prepare a nonresident income tax return from Maryland (or part-year resident return depending upon your situation).

 

You will be able to claim a credit in Indiana for any taxes paid in Maryland.  This ensures your income is only taxed once and you are given a credit on your resident state income tax return for any taxes paid in Maryland.

 

To ensure your return is calculated correctly, you will need to confirm a few items: 

 

In the My Info section of TurboTax, confirm that you have entered the correct state information: 

  1. Click Edit to the right of your name 
  2. Confirm your input under #2 Tell us the state(s) you lived in
  3. Go back to the personal information section, and verify the mailing address and "Other state income" section.  Be sure to answer yes to the question asking "Did you make money in any other states?" and select Maryland. 
  4. Be sure you report the wages in accordance with the states listed in box 15 for each W-2.  

Please note the following as it will affect the calculations: 

 

When you are preparing more than one state return, make sure you prepare the nonresident Maryland state tax returns first.   Be sure to answer the questions correctly to ensure only income sourced to that state specifically are reported.

 

Once you have entered all of the nonresident state information, then start your resident Indiana state income tax return.  This will ensure you receive any credits for taxes on income which may have been taxed in Maryland. 

 

Proceed through the screens in your Indiana return until you see credits and taxes. You should see Taxes Paid to Another State under the Credit for Taxes paid.   You can edit your information here if needed but the taxes paid to the other state should be listed in this section.

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