Will my income be taxed in 2 states?

I live in Maryland but interned in California for 3 months. Maryland defines a resident as anyone who held a valid MD address on last day of 2007 or had more than 183 days of residence in MD. Its state tax form 502 line 13 has a provision of subtracting income received from other states during period of "non-residence". But since i do not qualify for non-resident status do i have to pay tax on my CA income to Maryland too?

Public Comments

1. No. You pay your Maryland income taxes, and if you filled out paperwork for California income taxes with a California address, then you will owe California their state taxes. You will also have to file both sets of income in your Federal income tax filing.
2. Unless the two states in question have a reciprocal tax agreement, your wages can be taxed BOTH by the state where you earned them and by the state where you are a resident. But it isn't as bad as it sounds, please read on.... First you will need to fill out California Form 540NR Form: http://www.ftb.ca.gov/forms/07_forms/07_540nrlong.pdf Instructions: http://www.ftb.ca.gov/forms/07_forms/07_540nrlongins.pdf You can probably qualify to fill out the much shorter 540NR Short Form: Form: http://www.ftb.ca.gov/forms/07_forms/07_540nrshort.pdf Instructions: http://www.ftb.ca.gov/forms/07_forms/07_540nrshortins.pdf Once you have filled out your California return, you can fill out your Maryland income tax return. If your California tax liability (as shown on your Form 540NR) was greater than 0 (that is, you didn't get all of your withholding back), then you can claim a credit against your Maryland taxes for the amount paid to California. You do this by filling out Maryland Form 502CR http://forms.marylandtaxes.com/07_forms/502CR.pdf and attaching it to your Maryland Form 502: http://forms.marylandtaxes.com/07_forms/502.pdf The net result is that you will pay tax on the income you earned in Califonia at the higher of the two states' rates. You will not pay double tax.