Ask Experts Questions for FREE Help !
Ask
    vmarin's Avatar
    vmarin Posts: 1, Reputation: 1
    New Member
     
    #1

    Apr 3, 2007, 11:11 AM
    Filing state taxes in two states (IL and MD)
    Dear Tax Expert,

    I have the following questions for you:

    1. Both me and my husbands work on H1B visas and we are considered residents for tax purposes. Last year we filed a joint tax return for federal and IL state taxes. We plan on filing jointly this year.

    My husband changed jobs in Nov 2006 from an employer in IL to an employer in MD but he (we) lived in IL for the entire year 2006. For the 2 months in 2006 that he was paid from an employer in MD he received a W-2 form showing an income of $8000.0 in which he was taxed for IL but not for MD. Turbotax software indicated that we need to pay taxes to IL and to MD and fill the form MD-505 (non resident). However, the instructions for that form say:

    "IF YOU ARE A NONRESIDENT, YOU ARE
    NOT REQUIRED TO FILE A MARYLAND
    RETURN IF:
    your Maryland gross income is less than
    the minimum filing level for your filing status,
    OR.."
    And the table for persons under 65 years shows:
    Single persons (including dependent taxpayers) $ 8,450
    Joint return $16,900

    According to my interpretation (his income for 2006 from MD was $8000 and I am employed in IL) we don't need to file taxes for MD this year. IS THIS CORRECT? Or we should go by turbotax?

    2. Should my husband arrange for his employer to have MD taxes deducted form his paycheck in the future? We still live in IL.

    3. Is there any difference in us filing jointly or separately for federal or state taxes? I never knew how to file...


    Thank you for your help!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Apr 12, 2007, 03:01 PM
    If he worked INSIDE the borders of Maryland, then he must pay taxes on the Maryland-sourced income as a part-year resident or as a non-resident who earned money in Maryland.

    If he worked in Illinois (which seems to be the case), he owes NOTHING to Maryland and does not need to file a Maryland return.

    If you file jointly on the federal return, most states (including Illinois) require you file jointly on the state return.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Filing state taxes for two different states [ 1 Answers ]

I need to know if I'm filing state taxes for two different states,do I need a special form or do I file separate?

Filing Taxes in two States? [ 1 Answers ]

The first part of 2006 I was residing in Michigan and collecting unemployment while I was looking for another job. Unable to find employment I moved to South Carolina near my daughter and worked there for 6 months. I am now back in Michigan and I don't know how to go about filing taxes for...

Filing 2 states taxes at different times [ 1 Answers ]

I have a permanent residence in Maryland. But this past year I have worked 2 jobs in VA as well. I am asking if I can file my Maryland taxes seperatly from my VA. I ask only because I have not received all my VA w-2's and I ihave my Maryland. Any help for a confused soul?

Filing Taxes in Two states [ 1 Answers ]

Hi, I am a resident of California since Dec 2005. I have received some back salary payment from my old company in Missouri in 2006. They paid off my dues in 2006. I have two W2s with payments from CA (present employer at California) and the other from Mo (old employer at Missouri). Since...

Filing taxes for 2 states [ 4 Answers ]

Hi there, I normally do my taxes myself but for 2006, I'm a bit confused. I am a CA resident and worked in California for part of the year (8 months) and I paid CA state tax. Then for the remainder of the year, I worked in Connecticut (and paid CT state tax) -- even though I still have a CA drivers...


View more questions Search