part-year resident; where to file?

[bp2040]

What is the name of your state (only U.S. law)? Maryland
My wife & I separated several years, and are moving toward divorce. We have since sold our former marital home (in Delaware), and, our former vacation home (a double-wide manufactured home) & property (in Maryland) is now in my name. I refinanced the vacation home (with cash out, so I could buy out my wife's interest), and as a requirement (of the refiinancing) to do so, it is now my primary residence.

My question is: since we are not yet divorced, how do I (we) need to file tax returns (Federal, Delaware, and Maryland)? In short, I wasn't thinking about this issue, and we have actually already filed a joint return for both Federal & state (Delaware). No return has been filed yet for Maryland.

Thanks for your feedback.

 

[LdiJ]

What is the name of your state (only U.S. law)? Maryland
My wife & I separated several years, and are moving toward divorce. We have since sold our former marital home (in Delaware), and, our former vacation home (a double-wide manufactured home) & property (in Maryland) is now in my name. I refinanced the vacation home (with cash out, so I could buy out my wife's interest), and as a requirement (of the refiinancing) to do so, it is now my primary residence.

My question is: since we are not yet divorced, how do I (we) need to file tax returns (Federal, Delaware, and Maryland)? In short, I wasn't thinking about this issue, and we have actually already filed a joint return for both Federal & state (Delaware). No return has been filed yet for Maryland.

Thanks for your feedback.

Did you have any income in Maryland for 2010? The house refinance would not count as income.

 

[FlyingRon]

The first question: Where did you live in 2010?
If you resided in Maryland even for part of the year, you need to file the MD state income tax even if you didn't have income (Maryland considers residing if you have either your principal residence there for any part of the year or if your principal residence is elsewhere but you spent an aggregate of 6 months in MD).
Both full year and partial year resident returns are done on the MD 502.

As Ldij is aluding to is that if you are not a resident of Maryland, you only need to file in MD (as a non-resident) if you have income that would be reported on your Federal return from sources in Maryland. As stated, a refinance (unless there's some loan forgiveness involved) will not be income even if you took "cash out." If you sold the property for a capital gain, it would be a different story.

 

[bp2040]

part-year resident; how/where to file?

LdiJ and FlyingRon - thanks for your replies.
Neither of us have MD income for 2010 nor 2011. As mentioned in my original post, the MD home has been my primary residence (as a condition of refinancing) since last fall. At about that time, I changed my driver license and vehicle registration too. I didn't actually end up changing my address on my paycheck until early this year.

So, for purposes of filing a part-year, non-resident MD return, assuming I would need to file one for 2010, what income would be included on the return? What is considered the 'key' date for filing purposes? Given that we've already filed our Fed & DE returns (since we have nto yet divorced), it would be much easier to not have to contend with amended returns, etc. for 2010. However, I guess I'd need to know what the trigger will be for the Fed or MD, as to what income would be includable on a MD return, assuming I'd need to file one for 2010.

 

[FlyingRon]

You must file a resident return for the partial year in MD, since you were a resident of Maryland. The NON-RESIDENT issue is moot, you WERE a resident. All income from the date you established residence in MD is TAXED there (regardless of where you earned it).

I think you should find a tax professional that is familiar with the MD/DEL state taxes.