Maryland Tax Credit
Monday, October 17, 2011 at 9:28AM Sometimes it pays to complain. You can thank Brian Wynne, a taxpayer who challenged an aspect of the Maryland tax law, for the most recent taxpayer "break" in Maryland taxes. At issue was whether the credit for taxes paid to other states could be applied against the local income tax as well as the state income tax.
This past June, Brian won a constitutional challenge against the Maryland State Comptroller. A circuit court judge overturned the comptroller's practice of allowing the credit to only be applied against state income tax, but not local (county) tax. So what does this mean to you? If you have paid income tax to states other than Maryland since 2008, an amended return might be in order to claim a protective refund. Generally speaking, the tax rate for the other state must be greater than the MD state rate, and ideally greater than the state and local rates combined, to make amending worth your while. Of course the Maryland Comptroller will most likely appeal the decision so we will continue to monitor the case as it develops. Please contact us if you're interested in exploring whether amending makes sense for you.
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Reader Comments (3)
It is not making any scene to me. SO i don't care what they are doing in Maryland.
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With the state trial court decision, the state can expect tons of refund claims even if there's an appeal. tax relief attorney
Tax issues are big problem not only in Maryland but globally. We need to be responsible in this case because it affects to the society.
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