Crank Posted February 26, 2011 Report Share Posted February 26, 2011 Have a client that lived and worked in PA for the 1st half of 2010 then took a job in MD in the second half of 2010. Still owns the home in PA, not on the market yet, has an apartment in MD. One w-2 lists PA address and the other lists the MD address. Client acquired a MD Drivers license and plates (I believe). He plans on listing the house and purchasing another in MD possibly this year (2011) How do I determine which locations are the Resident and Non-Resident State or do I have 2 Resident states each for 1/2 of the year? Quote Link to comment Share on other sites More sharing options...
GeorgeM Posted February 26, 2011 Report Share Posted February 26, 2011 Have a client that lived and worked in PA for the 1st half of 2010 then took a job in MD in the second half of 2010. Still owns the home in PA, not on the market yet, has an apartment in MD. One w-2 lists PA address and the other lists the MD address. Client acquired a MD Drivers license and plates (I believe). He plans on listing the house and purchasing another in MD possibly this year (2011) How do I determine which locations are the Resident and Non-Resident State or do I have 2 Resident states each for 1/2 of the year? You should file a part year resident in each state. I know CT and Ma and RI allow this PA and MD should do the same. Quote Link to comment Share on other sites More sharing options...
Crank Posted February 26, 2011 Author Report Share Posted February 26, 2011 Thanks George. I believe you are correct as I did some research and it points toward this. Wondering how to allocated other items such as interest, dividends & capital transactions. Leaning toward capital trasactions allocated based on the date of sale, interet based on location of institution (one is in PA and another in MD), and prorating the dividends based on dates of residence. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted March 1, 2011 Report Share Posted March 1, 2011 I agree file part year resident returns for each state. You have to separate the income pertainint to each state. The federal total will flow to each state return and you will have to allocate for income and taxes paid. The big dividing factor is the W-2 forms Quote Link to comment Share on other sites More sharing options...
Crank Posted March 1, 2011 Author Report Share Posted March 1, 2011 Yep, thats what I did. The W-2 were easy since it was a new job so the w-2s corresponded to each individual state. I divided interest and dividends pro-rata and stock sale as of the sale date. The only issue Im am still researching is that MD's return does a calcualtion based on the % of time as a resident and applies that to the federal returns numbers. Since it does this there is an allowance to deduct the income attributable to the other state (Pa) on the MD form. All 3 are being efiled and I havent found anything stating that a physical copy of the federal or Pa returns need to be mailed to MD to verify these amounts. It would be so easy if the efiles were able to do this. Wondering if I should just have the TP mail copies of the Fed & Pa to MD anyway but dont want to complicate the process if it is unnecessary. Thanks for the replies! John Quote Link to comment Share on other sites More sharing options...
Julie Posted March 2, 2011 Report Share Posted March 2, 2011 No, don't have him mail anything. At least not yet. It will probably make a mess of their processing system. Quote Link to comment Share on other sites More sharing options...
Crank Posted March 2, 2011 Author Report Share Posted March 2, 2011 I dont think I am going to send anything unless they specifically request the returns as Julie suggested. Thanks :) Quote Link to comment Share on other sites More sharing options...
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