Maryland Tax Form Shows More Than I Earned as a Part-Year Resident
On my MD Form 502SU, Line ab, it shows more than I actually earned from U.S. Government obligations when in Maryland since I was only a part-year resident. The remainder of my earnings from U.S. Government obligations are in other states, which is even shown in FreeTaxUSA's returns for my other states.
Answers
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Hello,
It sounds like there may be an incorrect entry in the software. When you are a part-year resident, the software will ask you to allocate the income that was earned while a resident vs your total federal amount. This is probably where the error may have occurred.
For Maryland, please go to State -> (make sure that Maryland is selected) Maryland Income. There, you should see a list of federal income and a space for you to enter the amount of Maryland income. You will just want to enter the amount that is taxable to Maryland in the space provided, which means it may not be the same amount listed for the federal amount.
If you looked there and are not able to fix the error, I would recommend that you contact support because they can view your individual entries and see where the amount may be coming from.
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Thanks for your help. Yes, I made sure to enter the amount that is taxable in Maryland correctly so I am unsure how else to proceed besides having technical support look at it. My thinking prior was that maybe Maryland tax law is written where US gov bonds are tax free and counts against income even if it is not earned in Maryland.
