In Comptroller v. Wynne, the Court of Appeals recently held that Maryland’s denial of a credit towards the local income tax portion of Maryland’s income tax regime for taxes paid to other states by a Maryland resident is unconstitutional. For example, if a resident generated income in a state with a 9% income tax rate, Maryland allowed a credit against the Maryland state tax but not against the local tax due (up to 3.2%). Thus, some residents were “double taxed” and effectively overpaid Maryland in an amount equal to their local income tax. Under Wynne, Maryland taxpayers with out-of-state income should consult with a tax professional and should strongly consider acting immediately to file refund claims for amounts overpaid under these circumstances in prior years.