Dual Status help

Flyingdhruv · Post by **Flyingdhruv** » Mon Mar 21, 2016 6:37 pm

[quote="nelsona"]an exemption (2555) is better than a 1116 tax credit.

Feel free to try out both ways.[/quote]

Ok thank you, will try out both ways in Tubortax.

Flyingdhruv · Post by **Flyingdhruv** » Sat Apr 02, 2016 5:38 pm

[quote="nelsona"]an exemption (2555) is better than a 1116 tax credit.

Feel free to try out both ways.[/quote]

Hey Nelsona, I have a question regarding my state return. I moved to Maryland from Canada in May 2015 and used Form 2555 to exclude my Canadian Income I earned before I moved. Tax software is recommending me to file Part-year Resident return for Maryland.

Filing Part-year return form MD-502, it asks my income outside Maryland and I entered the income I made in Canada that I already used for exclusion in Federal return using 2555. Then software calculates my Maryland income as below.

Adjusted Gross income from 1040 (total worldwide income - excluded income from Canada on 2555) - Income received during period of non-residence (which I entered same amount as Canadian income on 2555)

This reduces my Maryland adjusted gross income by quite a lot. Is it correct though? Can I file part year return for Maryland and subtract my 2555 excluded income AGAIN which was already subtracted in 1040 to calculate my Federal adjusted gross income?

Sorry for the long post. I am really confused and would appreciate your help.

nelsona · Post by **nelsona** » Sun Apr 03, 2016 9:42 am

Obviously, the purpose of a part year state return is to report income made while living in that state. so whatever your software needs to get that amount accurate is between you and sw firm.