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    MD and HI split

    I have a married couple who lived in MD in 2013. They both have W2s and DFAS 1099Rs as income.

    He was transferred to HI in mid-November 2013 and began working in HI at that time.

    She will follow, and THEY are in the midst of moving in March 2014.

    I am allowed to file him separately in HI as a PY taxpayer, but I'm struggling with what to do for MD??

    What do I do with MD? I can't file them together on a PY MD return (I am allowed to do that in VA) because SHE is not a PY MD taxpayer.

    Must I file 2 separate returns for MD? My software doesn't support it. I would have to create 2 separate paper returns. I can do that, but does anyone have a better suggestion? Someone familiar with MD returns....

    Would it be best, or even possible, to file him as HI NON-RESIDENT, keeping them both as MD full yr residents?

    He hasn't moved there yet.

    I just can't bust out of this tax return!

    Thanks for any help!!
    "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

    #2
    My reading of the MD resident booklet, instruction 26g, is that you can indeed file jointly even though their residency periods were different.

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      #3
      Military domicile

      With military taxpayers, the domicile isn't necessarily where their current assignment stations them. Where is the domicile?

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        #4
        Have you checked the NR rules for Hawaii? I don't think he qualifies for part-year. did he work in Hawaii before the end of the of the year. Is he military? if so then both he and his spouse can claim residents of that state.
        Believe nothing you have not personally researched and verified.

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          #5
          he worked in HI

          Yes, he did work in HI before the end of the year. He "transferred" in November. They have not officially "moved" yet. They are packing up now. So, I believe he can file as non-resident in HI. Would that work?

          BTW, I wasn't real clear that they are retired military, and now working in non-military positions.
          "I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey

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