I moved to Maryland last June making me a part-year resident for 2008. While completing my taxes using H&R Block's Tax Cut software, I see that my Maryland is listed at nearly $10,000 more than my wages listed on my W-2s. How can this be. I fear that this is the reason why I owe this year instead of receiving a return.

Could you please explain your situation in full, I am not exactly sure what the software is calculating.

You are were a part-year MD resident and so MD should only be taxing you on MD sourced income. I think you are sourcing all the income to MD! Please ensure that you have indicated that you are a part year resident of MD.

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In the software I have indicated that I am a part-year resident. It asks for what allocation of dividend and interest income were earned in Maryland (and number so small that it can't make a real difference (approximately $16). The software then asks me what portion of my wages were earned in MD and I input all of my wages that were earned in MD (approximately $31,000). It then goes though MD additions, subtractions, and adjustments. The only adjustment we have is our moving expenses. There are no additions. The only subtraction I have is the Maryland Two-Income Subtraction, which we (my wife and I) get the standard subtraction. The software then gives us the standard deduction of $3,908. After all of this it lists our Federal AGI, our MD additions ($0), our MD subtractions ($1,200), and our Maryland income, which it now lists as around $41,000. It makes absolutely no sense to me.