JustEm Posted January 16, 2020 Share Posted January 16, 2020 So, I can't figure out how to handle our residency in terms of state filing. We moved from DE to MD at the end of Feb 2019. All of our income is from DE. We use Turbo Tax online for our filing and it suggests filing as a full-time resident in MD since we've been here for more than 6 months. But when it comes time to do DE taxes it doesn't suggest anything. It does say that generally people would file part time resident under our situation but will that affect the full-time residency status of MD? Do we file as part time residence for both states? I simply don't know. Any advice? 1 Quote Link to comment Share on other sites More sharing options...
Frances Posted January 16, 2020 Share Posted January 16, 2020 It might be best to go and look at the state tax department web sites for each state. I know if you moved to my state at any time after January 1, you would file as a part-year resident for the first year and then a full year resident in subsequent years. There is a place right at the top of the part year tax form to enter your dates of residency. So when we moved here, I filed part-year returns for both our former and current state for the first year. 3 Quote Link to comment Share on other sites More sharing options...
Carrie12345 Posted January 16, 2020 Share Posted January 16, 2020 Are DE and MD not reciprocal states? PA and NJ are. When we lived in one and got paychecks from the other, we only had to file where we lived. I would expect DE and MD to be the same, given their size/commuter radius. Quote Link to comment Share on other sites More sharing options...
JustEm Posted January 16, 2020 Author Share Posted January 16, 2020 No DE and MD are not reciprocal states. Thanks all, I will look on both states website's Quote Link to comment Share on other sites More sharing options...
Lanny Posted January 16, 2020 Share Posted January 16, 2020 I am not a "tax expert" but IMO you are using the best tax preparation software available and the one with the best help. That's TurboTax... A few days ago, I started the 2019 returns (Federal and NC) for my DD with TurboTax Online, a Free version. PLEASE NOTE: You can call them for Free help, and I did that once, when trying to set up an account to do my return, Free, but it was an issue with their platform and not about a state income tax situation like you have. So, I suggest, that it will be easier for them to understand your situation, if you can send them an email or post in their Online Forum. TurboTax is probably correct, suggesting that you file as an MD Resident, for the 2019 tax year, but then that leaves you wondering if DE is going to come after you for not filing for the first 2 months of 2019. The State returns, IMO, are extremely complicated, and I come from a state that doesn't have an income tax, so I don't have that experience. Personally, I have more faith in TurboTax than I would in paying an I.R.S. Enrolled Agent, or, a C.P.A. who does Personal Income Tax, and you have already seen that with your visits to H&R Block and the other company that have Brick & Mortar offices. OH... H&R Block. If I wasn't using TurboTax for the 2019 returns for DD, I would probably use H&R Blocks Online service. My impression is that TurbiTax is somewhat more complete and that TurboTax has better "Help". Possibly create an account on H&R Block Online and input all of the information and see what H&R Block comes up with, with regard to the State returns. Good luck with your 2019 returns! 1 Quote Link to comment Share on other sites More sharing options...
SereneHome Posted January 16, 2020 Share Posted January 16, 2020 (edited) You are taxed where you live and where you work. Your DE income will be taxed by DE and MD, but then you should get credit on MD return for DE income So.....if you make $1K/mo. You will pay DE Tax on $2K at DE rates. You will pay MD tax on $12K at MD rates, you will get credit for what you paid to DE on MD return at MD rates. You CAN be a full time resident and still have other state's income.....it's two different things.... ETA: this is how you suppose to do it....how people file in reality I am not sure. But I do think Turbo Tax has different screens for states, you might have to buy the edition that has multi state returns Edited January 16, 2020 by SereneHome 1 Quote Link to comment Share on other sites More sharing options...
vonfirmath Posted January 17, 2020 Share Posted January 17, 2020 15 hours ago, SereneHome said: You are taxed where you live and where you work. Your DE income will be taxed by DE and MD, but then you should get credit on MD return for DE income So.....if you make $1K/mo. You will pay DE Tax on $2K at DE rates. You will pay MD tax on $12K at MD rates, you will get credit for what you paid to DE on MD return at MD rates. You CAN be a full time resident and still have other state's income.....it's two different things.... ETA: this is how you suppose to do it....how people file in reality I am not sure. But I do think Turbo Tax has different screens for states, you might have to buy the edition that has multi state returns My dad was a travelling educator (and an independent contractor). So my mom would keep track of all the places he travelled to to hold classes and file tax returns in each of those states with the amount earned in that state. The main state tax returned was South Carolina. The first year he was independent, she went to a CPA with all the information and they put it together for her. Then she held onto the information she gave her and filled it in and used it for many years thereafter, just having the CPA go over it at the end and file it for a nominal fee. 2 Quote Link to comment Share on other sites More sharing options...
SamanthaCarter Posted January 17, 2020 Share Posted January 17, 2020 TurboTax charges a lot for multi state returns. If your tax situation is not complicated otherwise, I’d look it up on the state dept of revenue sites and fill them out by hand. 1 Quote Link to comment Share on other sites More sharing options...
JustEm Posted January 17, 2020 Author Share Posted January 17, 2020 8 minutes ago, SamanthaCarter said: TurboTax charges a lot for multi state returns. If your tax situation is not complicated otherwise, I’d look it up on the state dept of revenue sites and fill them out by hand. The way it is now they aren't charging me anything for federal or either state Quote Link to comment Share on other sites More sharing options...
G5052 Posted January 17, 2020 Share Posted January 17, 2020 On 1/16/2020 at 5:29 PM, Lanny said: Personally, I have more faith in TurboTax than I would in paying an I.R.S. Enrolled Agent, or, a C.P.A. who does Personal Income Tax, and you have already seen that with your visits to H&R Block and the other company that have Brick & Mortar offices. YMMV. I had a really tough situation some years back that confused Turbo Tax and all of their help resources available at the time. I ended up going to an EA. She didn't charge me the full rate because I had already done most of the work in Turbo Tax, but she immediately knew what to do and found another deduction that paid for her fee and more. Now Turbo Tax offers CPA/EA's for a fee, and I probably could get that particular situation resolved. 1 Quote Link to comment Share on other sites More sharing options...
SereneHome Posted January 18, 2020 Share Posted January 18, 2020 On 1/16/2020 at 5:29 PM, Lanny said: I am not a "tax expert" but IMO you are using the best tax preparation software available and the one with the best help. That's TurboTax... A few days ago, I started the 2019 returns (Federal and NC) for my DD with TurboTax Online, a Free version. PLEASE NOTE: You can call them for Free help, and I did that once, when trying to set up an account to do my return, Free, but it was an issue with their platform and not about a state income tax situation like you have. So, I suggest, that it will be easier for them to understand your situation, if you can send them an email or post in their Online Forum. TurboTax is probably correct, suggesting that you file as an MD Resident, for the 2019 tax year, but then that leaves you wondering if DE is going to come after you for not filing for the first 2 months of 2019. The State returns, IMO, are extremely complicated, and I come from a state that doesn't have an income tax, so I don't have that experience. Personally, I have more faith in TurboTax than I would in paying an I.R.S. Enrolled Agent, or, a C.P.A. who does Personal Income Tax, and you have already seen that with your visits to H&R Block and the other company that have Brick & Mortar offices. OH... H&R Block. If I wasn't using TurboTax for the 2019 returns for DD, I would probably use H&R Blocks Online service. My impression is that TurbiTax is somewhat more complete and that TurboTax has better "Help". Possibly create an account on H&R Block Online and input all of the information and see what H&R Block comes up with, with regard to the State returns. Good luck with your 2019 returns! Ummm.....I disagree 100% So, I use TurboTax for my own taxes. i also prepare taxes for a living using a sophisticated tax software. I think TurboTax is fine for people who have very simple returns or actually know what they are doing bc TT doesn't always ask the right questions. It also doesn't flag you if your input is wrong. A few years ago I had to run my parents' info through my software at work to figure out what TT wasn't picking up. They live in MD and their state tax was completely out of whack. It would have cost them additional $1700 in state tax..... Now, I don't think OP's situation is that complicated, but I wouldn't say that TT is more reliable than a CPA. Full disclosure - I am not a CPA, I work for one and I do have Master's degree in tax 3 Quote Link to comment Share on other sites More sharing options...
SamanthaCarter Posted January 18, 2020 Share Posted January 18, 2020 Wait, TT is free now? I’ve been just using FreeFile to save the money the last several years....I do like TurboTax though...Even though I hate Intuit... Quote Link to comment Share on other sites More sharing options...
JustEm Posted January 18, 2020 Author Share Posted January 18, 2020 17 hours ago, SamanthaCarter said: Wait, TT is free now? I’ve been just using FreeFile to save the money the last several years....I do like TurboTax though...Even though I hate Intuit... using turbotax online is free. Sadly, it is not working properly for my situation. So, I'll likely just file federal and do both states by hand Quote Link to comment Share on other sites More sharing options...
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