Part Year Resident and Capital Gains

Taxman10888
Taxman10888 Member Posts: 4 Level 2
in State Filing

I lived in DC Jan - March 2025 and sold stock. For my DC return, I indicated that 100% of the capital gains is for DC. When I moved to MD, I had no capital gains.

When filling out the "Maryland Income," I indicated $0 in the MD column for capital gains. In the MD State Summary, it is showing the federal amount of capital gains being subject to additional tax. I don't think this should be the case because I did not make the sale when living in MD. I'm not sure how to resolve this.

Thanks for any feedback!

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Answers

  • JanaA
    JanaA FreeTaxUSA Agent Posts: 134 image
    Hello Taxman10888! Thank you for reaching out. Maryland passed a new tax law regarding capital gains taxation that went live with the 2025 filing. We are fixing our software to account for the non-resident situation you are asking about. Can you please check back next Friday? This is when the update will be available which will allow you to exclude this from your Maryland return. We appreciate your patience as we make the necessary updates.

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