[rotzwe]

I "live" in MD and work in DC - been doing so for decades - and I've been filing just a MD return and nothing in DC because of the reciprocal tax agreement that exists with DC, MD, and VA. But, I got tired of the commute especially when working long hours. (I used to keep a sleeping bag under my desk.) So now I'm renting an apartment in DC.

The house I own is in MD, I have a MD driver's license, I am registered to vote in MD, most of my possessions are in MD, my family (extended, I'm single) lives with me in my house in MD, and most important of all, my dog is in MD! And yes, I spent new year's eve in MD. I understand this makes me a "legal permanent resident" in MD or "domiciled" in MD - and according to MD, I should file a MD tax return.

My 770 sq ft dc apartment has mostly my business clothes and a few things to keep me amused. I understand this makes DC my abode (but so is MD).

I am not a part time resident in either jurisdiction because I have not abandoned either abode.

I spend nights in either place. I likely slept more nights in my DC apartment but spent more waking (not work) hours in MD. But, never mind where I spent most of my time, because according to DC tax instructions, I need to file a DC return because I've maintained a place of residence in DC for over 183 days - even though my permanent residence was outside of DC. (I rented the apartment for the whole year.) Ok,.

MD has been getting the state taxes taken from my paycheck. But if MD gets these taxes - what do I do put on the DC return?

Now if you argue DC gets the taxes. Then the thing to do is file the dc return - give them the taxes- but then get a credit on the MD return so the money is refunded to me (so I can pay DC). - But according to MD instructions, you don't file for this credit if the other state is DC because of the tri-state DC MD VA reciprocal tax agreement. You just pay the taxes in the state where you "reside". <I reside in both places. What do I do with this?> And still according to MD instructions, I would only file a DC return if taxes were paid to them in error. Hmmmm... Does this trump DC's instructions?

Anyway, who gets my taxes this year? I need to file a MD return; am I also required to file a DC return? If so what do I put on the return? And, just for fun, does this apartment disqualify me from the MD homestead tax credit?




http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/2010_individual_income_tax_forms/2010_d-40_d-40ez.pdf

http://forms.marylandtaxes.com/current_forms/Resident_booklet.pdf

http://individuals.marylandtaxes.com/filinginfo/resident.asp

http://individuals.marylandtaxes.com/incometax/status.asp

http://individuals.marylandtaxes.com/incometax/outsidemd.asp

http://www.marylandtaxes.com/publications/bulletins/it/ar_it37.pdf

http://individuals.marylandtaxes.com/incometax/gtpitc/income.asp

[ebaines]

If you are planning to continue with the DC apartment, I would suggest facing up to the fact that you are now a DC resident. That's because you spend more nights sleeping in DC than you do in MD, and you have no intention of changing that. So your MD house is now your 2nd home, or vacation home if you like. Since you live and work in DC you should pay DC income taxes. Starting from the time you moved into the apartment you do not owe any MD income taxes, since you don't live there (you only visit) and you don't work there. I know you like to think that you're still a MD resident, and it's OK to tell your friends that, and root for the Ravens, Orioles and the Terps if you like, but from a tax persepective you are a DC resident.

For 2010 you should file part-year resident returns for both MD and DC. You were a MD resident up until the date you rented the apartment, and since then you became a DC resident.

There's another alternative - you could rent an apartment in MD that's close to work and has easy access to the metro.

[rotzwe]

Go ravens! Thanks for such a quick response.

From year to year, it could change which place I spend more nights.

This site makes the distinction between a domicile and an abode. Domcile gets you MD residency. Abode with 183 days of physcial presence also gets you MD residency - fail on the latter, pass on the former. http://www.marylandtaxes.com/publications/bulletins/it/ar_it37.pdf

It seems that I am still a permanent resident of MD, but have two abodes - DC and MD. You're absolutely right though. It would be much easier if I just made up my mind to be in one jurisdiction or the other.