Question

We live in VA. I received a W-2 and a Virginia K-1, while my husband received a W-2 and a Maryland K-1. Do we need to file state taxes in both VA and MD?

Forum|Forum|2 years ago
November 18, 2023
1 reply
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My company is registered in VA, so I received a VA K-1 (profit). My husband's company is registered in MD, and he began receiving a MD K-1 (loss) last year. We have been living in VA since 2018. Do we need to file state taxes in both MD and VA? I was told we will need to file both a MD 505 (non-resident income tax return) and a VA resident individual income tax return.

Currently, we are using TurboTax. Without entering his K-1 loss in the Virginia State Tax section, we would receive a refund from the Federal tax return but owe taxes to Virginia. How can we account for his K-1 loss to offset our income if we report his MD K-1 in a non-resident return in Maryland?

If we must file in both states, should we report my W-2 and VA K-1 with Virginia, along with my husband's W-2, and only his MD K-1 with Maryland?

Thank you for your help!

TurboTax Home & Biz Windows

M

Mike9241

you prepare your federal return including the W-2, Federal K-1 for VA and Federal K-1 for MD

Since MD is a loss you can next prepare your VA return which would include the MD loss. VA starts out with Federal AGI so the MD loss should already be included. MD may allow a net operating loss carryforward in which case filing there as a nonresident would be crucial should there be MD income in the future. others more familiar with MD taxes may advise you further

E

EllenHarrAuthor

Hi Mike,

Thank you for your answer. I downloaded the Maryland State Tax section in TurboTax. After entering the K-1 information, it shows that we owe Maryland taxes in the amount of $5000+. On the other hand, the Virginia section indicates a refund of $700+ instead of owing taxes of $1000+ as it did before. I'm uncertain if this is correct or if something went wrong.