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Level 3
December 2, 2024
Solved

How to file two Maryland returns for the same client

  • December 2, 2024
  • 2 replies
  • 10 views

Hello friends.

I have a client that moved from Maryland to Delaware in 2024.  I will need to file part year returns for both states.  I will also need to file a non-resident return for Maryland as the client continued to work for their Maryland employer during the period of non-residence.  I can't find a way to add a second Maryland return.  How can I do this with ProConnect?  

Thank you much,

AnnieK

    Best answer by sjrcpa

    Yes, it seems weird to me too, but the instructions clearly state I have to file two.  Here is a copy/paste of the instructions.

    IF YOU ARE A:

    Taxpayer who moved into or out of Maryland during the tax year and received income from Maryland  sources while you were a nonresident of Maryland.

    YOU SHOULD FILE:

    Form 505 Nonresident Return and Form 502 Resident Return

     

     

     


    @AnnieK  You are reading correctly and your proposed solution is viable.

    However, I have been known to make it work by filing a 502 part year return and including as MD income the MD source income earned while a nonresident.

    CAGMC.

    2 replies

    George4Tacks
    Level 15
    December 4, 2024

    The client is part year resident of each state. Indicate Delaware at the top of the Client Information screen for Resident State as of 12/31.

    You will need to split some of the income between states $GrThttps://accountants.intuit.com/support/en-us/help-article/multi-state-taxes/entering-multi-state-amounts-proconnect-tax/L61jemqC2_US_en_US?uid=m494rk6v

    Additionally you will likely need to use N and S to not duplicate income. $GrThttps://accountants.intuit.com/support/en-us/help-article/state-taxes/understanding-source-column-proconnect-tax/L8OmfdBUe_US_en_US?uid=m494wdvg

    As you get into this, you may want to contact support for more help. THIS IS HARD TO LEARN. 

     

    Answers are easy. Questions are hard!
    AnnieKAuthor
    Level 3
    December 4, 2024

    Thanks George4Tacks.  I get that part and you are right, it is hard.  This situation is one step harder though.

    The income that was earned in Maryland has to be split to two Maryland returns.  One for part year resident, and one for the income earned in Maryland while nonresident.

    From what I see, the only way to do 2 Maryland returns would be to duplicate the federal return and file Maryland only on the second one.  I just want to make sure there isn't a better way.

    George4Tacks
    Level 15
    December 4, 2024

    I don't do Maryland tax returns, but that seems weird. I have never seen a state require 2 returns. From what I see in quick read of the instructions is you would file a RESIDENT return for MD and a part year for Delaware. You would prorate all income on MD to indicate income taxable to MD and do similar proration for DE. There may be a credit paid to another state for the duplication of income in MD while a DE resident. 

    Maybe @sjrcpa has some experience

    Answers are easy. Questions are hard!
    Level 4
    June 18, 2025

    Same issue in 2024 Virginia for my taxpayer who moved to TN from VA. Decided to file as VA PY and put all income to VA and deduct TN pro-rata non-VA income as adjustment allowed in instructions/forms.

    Also, had some out of state income (LA) so claimed out of state tax credit (OSC) on VA PY tax return.

    Had to include attachment of LA nonresident return with VA PY e file.

    No military taxpayers on this one. No Federal or State taxpayer employees involved.

    VA instructions specifically indicate requirement to file two separate returns?? Pro series would not allow 2 separate e file returns for same taxpayer.