summer internship out of state

I worked in NYC for a summer internship (2008), and am a permanent resident of MD. I filed MD, NY and NYC taxes for 2008. I owed MD taxes on the income I earned in NY, but thought I would receive a full return for taxes I paid to NY and NYC. Apparently, NY state is saying I will not receive the full return, but only a portion of it because I still lived in NY for the summer. Is this correct? Should I claim these taxes back from MD? Please help.

Reply to
hkhan
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You thought wrong. When in such a situation, do the nonresident (NY) return first. You'll then know how much tax you paid to that state. Then you do your resident return (MD), on which you get a credit for the taxes paid to NY.

It sounds like you need to amend your MD return. You can do that through their website.

-------------- Phil Marti, VITA Volunteer Clarksburg, MD

Reply to
Phillip Marti

As Phil says, you should file an amended MD return to claim credit for the tax you pay to NY State.

However, you probably also need to file an amended NY state return (IT-203X). You were not a NY resident for any part of the year; you were a full year nonresident. You did have NY source income, which is subject to NY state income tax. However, nonresidents are not subject to the NYC personal income tax, and you should receive a refund of the entire amount paid to NYC.

You should prepare your amended NY return first to determine the correct amount of tax due. That is the amount for which MD will give you credit, limited to the proportion of your MD tax liability that relates to the NY source income.

Katie in San Diego

Reply to
Katie

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