See below

pbutler

I sold my home in Maryland on Jan 10, 2025 and moved to DE that day. I had no income in MD other than the sale. I lived in house for 39 years. I got divorced in 1997. I am single. Do I have to file taxes?

JanaA

Hello pbutler! Based on what you've described, here is some general guidance on your situation.

On the federal side, since you lived in your home as your primary residence for 39 years, you very likely qualify for the home sale gain exclusion. As a single filer, you can generally exclude up to $250,000 of gain from the sale of your primary residence, as long as you owned and lived in the home for at least 2 of the last 5 years before the sale. You easily meet that test. Your divorce in 1997 does not affect your eligibility. If your gain on the sale is $250,000 or less, the home sale would produce no taxable income. Whether you are required to file a federal return at all depends on your total income from all sources for the year, not just the home sale.

On the Maryland side, because you sold your home on January 10, 2025, you were still a Maryland resident at the time of the sale. That means if you are required to file a federal return, Maryland would generally require you to file a part-year resident return. If your home sale gain is fully excluded at the federal level, Maryland follows that same exclusion, so there may be little or no Maryland tax owed. However, if Maryland withholding was taken from your sale proceeds at closing, you would want to file a Maryland return to claim a refund of that withholding.