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Level 3
June 1, 2026
Question

Other income and Digital assets not taxable

  • June 1, 2026
  • 1 reply
  • 13 views

I am sourcing a portion of Other income from crypto income and Digital assets from crypto staking income to Maryland, but it is reporting 100% of the federal taxable amounts on Line 12 of the Maryland Form 502 (Income received during period of nonresidence (See Instruction 26.)). Even when I show MD and S in the Source column, it doesn't place the MD sourced income. In my reconciliation, I am off by the amounts from these two income items only.  Any ideas how to fix this or does Intuit need to program it properly? 

1 reply

PhoebeRoberts
Intuit Community Champion
June 1, 2026

Oooh, Maryland has a weird tax return. Looks like the appropriate presentation per the MD forms instructions (https://www.marylandcomptroller.gov/content/dam/mdcomp/tax/instructions/2025/resident-booklet.pdf page 23 / 31 of the PDF) is to subtract off the income earned during the nonresident period as a Maryland Subtraction on Line 12.

Use the override field called Income Received While Nonresident [O] under State & Local, Modifications, Maryland, Maryland Subtractions.

Totally not a satisfying fix, but it appears to get the job done.