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URL:  https://boards.fool.com/further-on-taxes-and-md-residency-kbm-is-18974650.aspx

Subject:  Re: residency requirements for state taxes Date:  4/29/2003  9:54 AM
Author:  lorenzo2 Number:  65218 of 131768

Further on taxes and MD residency:

- KBM is correct: you get credit for taxes paid to another state, which helps a bit.

- if you change your residence during the year, you can exclude income received while a non-resident.

So if you change your residence to CA (or wherever), then income received in your new state of residence is not taxed by MD. Likewise, if you move into MD from another jurisdiction, income received from your old state of residence is not taxed by MD.

The problem is that "resident" is never adequately defined, at least to my satisfaction. The MD booklet merely says that MD is your residence if your permanent home is in Maryland (your domicile) OR if your permanent home is elsewhere but you maintained and occupied a place of abode in Maryland for more than 183 days. So what does permanent home mean? I would think that where you vote, and what kind of driver's license you have, would speak to that (OP's daughter was going to CA but planned to retain MD voter registration and driver's license.) If you leave MD but plan to come back, does that count?

With regard to moving into or away from Maryland, it seems like the safest thing is always to move to Maryland on Jan 1 (planning to stay at least a year), and to move from Maryland on Dec 31 (having stayed at least a year).

Lorenzo
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