Maryland income tax question?
I moved to Maryland from Texas in May. The Maryland tax booklet says that I have to include either a tax form from Texas or a schedule itemizing deductions from the other state. Texas has no state income tax, so I need to do the schedule thing but the booklet doesn't say what exactly the schedule should be that I had to send them. Does it make since to include just the math I used to arrive at the prorated deduction (as outlined in the booklet) or do they want something else. Federal taxes are no problem for me, but living in Texas for 5 years spoiled me regarding the BS of state taxes.
Public Comments
- Just the math. Here's the key; instruction 6: If you itemize deductions, complete lines 19a - 19b of Form 502. Prorate the itemized deductions using this formula: Net itemized deductions (line 19c) multiplied by Maryland Income Factor. This amount is your itemized deductions (enter on line 19) Actually, Maryland shouldn't complicate it since every State that has income tax {except TN and NH} has as the starting point your adjusted gross income. Deduct Texas sales tax of 8.25%. ITEMIZED DEDUCTION METHOD (Check the box on line 19 of Form 502) You may itemize your deductions only if you itemized deductions on your federal return. See Instruction 14 for completing lines 19a and b of Form 502. Enter the result on line 19. You are not required to itemize deductions on your Maryland return simply because you itemized on your federal return. Figure your tax each way to determine which method is best for you. USE FEDERAL FORM 1040 SCHEDULE A To use the ITEMIZED DEDUCTION METHOD, you must itemize your deductions on your federal return and complete federal Form 1040 Schedule A. Copy the amount from Schedule A, line 29, Total Itemized Deductions, on line 19a of Form 502. Certain items of federal itemized deductions are not eligible for State purposes and must be subtracted from line 19a. State and local income taxes (but not general sales tax) used as a deduction for federal purposes must be entered on line 19b. Also, any amounts deducted as contributions of Preservation and Conservation Easements for which a credit is claimed on Form 502CR must be added to line 19b. You are not required to itemize deductions on your Maryland return simply because you itemized on your federal return. Figure your tax each way to determine which method is best for you. NOTE: Certain high-income taxpayers are required to reduce their federal itemized deductions. If you had to reduce your total federal itemized deductions, use the Itemized Deduction Worksheet below to calculate the amount of state and local income taxes to enter on line 19b of Form 502. If your unreimbursed business expenses include depreciation to which an adjustment is required for Maryland purposes,complete Form 500DM to calculate the addition modification “I” or subtraction modifica-tion “bb”. If you owe, don't use direct debit. Like the IRS website, phishers are counterfeiting the Maryland website to divert your money in to their account.
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