I am in the military and a TX resident (no state tax). My wife and I live in MD and she works and pays taxes there. We have several savings accounts that have a couple of thousand dollars in interest income for the year. They are joint accounts. How do we figure how much of that joint interest is subject to MD state tax?
Half of the interest from TX (community property state) accounts plus all of the interest in any accounts anywhere else. If she is a not a MD resident like you then file a joint nonresident MD return and pay tax only on her wages. Interest income is never taxed in nonresident states.
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