I am a North carolina resident, but have done some contarct work in Maryland. Do i have to pay MD Taxes??

Question

I am trying to file my taxes online myself using taxcut. My taxable income is automatically rolled over when trying to do my NC state taxes. But, i don't think i should pay NC tax on the money i earned in MD...help Please...

Answer 1

You're abosulutely right.

You have to do a part-year resident return for both states. You must show the money you earned while you were a resident in those states. An allocation has to be made.

Please seek out a professional to do it for you. A tax practitioner or CPA.

TC is not a good program. It has many flaws. Try using TT next year, you wont regret it.

Answer 2

Since you are a NC resident, you must list all income from all sources on your NC return. NC is entitled to tax your world-wide income, regardless of where it was earned.

Since you had earned income in MD, you must file a non-resident return in MD listing only the MD income and pay any MD tax due.

You will get a credit on your NC return for the MD state taxes paid.