I bought a condo in MD in April 2006. I was living in VA and did not move to MD till 12/28 All my income was earned while a VA, and I filed a VA return Do I need to file a MD Part Year resident form. If so, will MD view my VA earnings as taxable? Thanks for your help!
Victor
Moderator: Maryland has (or had) tax reciprocity with adjacent States except Delaware - plus you say you had no Maryland sourced income.
Maryland defines a resident to include any person who maintains a "place of abode" in the state for more than six months of the taxable year. You certainly wouldn't want to be considered a resident of both VA and MD at the same time, because in that case you could be subject to tax on your VA earnings by both states at the same time with no credit relief (the reciprocal agreement would actually be a disadvantage in that case, since each state would consider the other not to have jurisdiction to tax the income). However, MD case law interprets its somewhat ambiguous statute to mean that in addition to maintenance of a place of abode, a person is not a resident without actual residence or occupancy of the home for more than six months of the taxable year (Jack Lyndall vs. Comptroller of the Treasury, Income Tax 694, 10/01/1975). Unless you had some large transaction occurring between Dec.
28 and Dec. 31, such as a stock sale or receipt of a severance payment from a previous employer, you would have no need to file a Maryland return for 2006. Katie in San DiegoBeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.