tax question - move out of state?

Question

I was a resident in maryland, recieved a promotion and got my first house in PA, I still work in Maryland with the same employment, when I started to do my state taxes with Turbo tax it stated that I owed quite a lot of money to Maryland. I reasoned that Turbo Tax assumed my income on my W2 was Maryland taxable. Am I correct in assuming I should use my last pay stub before I moved as my yearly income for filing with Maryland, and subtract that amount from my W2 income and use that solution for PA?

Answer 1

No.

You file a MD non-resident tax return listing all MD sourced income and pay any tax due. Then you file a PA resident tax return listing all of your income from all sources and take a credit for the MD taxes paid.

Since PA is your domicile now, it is entitled to tax your income from all sources. MD is only entitled to tax your income actually earned in MD.