In late September, Maryland Comptroller Peter Franchot and Governor Larry Hogan announced that payers of income taxes within the state were eligible to receive an estimated $200 million in refunds. The news comes on the heels of a pivotal decision from the United States Supreme Court which found an element of Maryland’s state and local tax collection practices to be unconstitutional.
According to the announcement, individuals who were residents of Maryland during the years 2011, 2012, 2013 and/or 2014 and who also paid income taxes in one or more other states may be eligible for a refund against the paid county portion of Maryland taxes.
The Maryland tax attorneys at Rosenberg Martin Greenberg have the expertise and skill necessary to help determine whether you are among those owed.
Wynne decision leads to sizable tax refunds
In the case of Comptroller of Maryland v. Wynne, the United States Supreme Court reviewed Maryland’s system of personal income taxation in which state residents pay both state income taxes as well as local taxes that are distributed to the county where they live. Those who paid income taxes to other states besides Maryland had traditionally been allowed to take a credit against their state taxes, but not against their local taxes. The justices ultimately ruled that this system was, in fact, unconstitutional.
Now in Maryland, credit for taxes that have been paid to any other state may be applied toward the local portion of taxes assessed.
The practical implications of the Wynne decision are significant, in that any resident of Maryland who has paid income taxes on money earned in another state, the District of Columbia or a local subdivision of another state may have a refund due to them. While this mainly affects partners and owners of companies operating in multiple jurisdictions who were paid “pass through” income from the enterprise, it may also apply to a range of taxpayer situations.
Governor Hogan championed the refund, declaring that he has long believed that Maryland residents have been paying too much in taxes. Approximately 55,000 Maryland taxpayers may receive significant refunds.
Comptroller Franchot has pledged to commit substantial technology, resources and staff power to expedite refunds for eligible taxpayers, with over $53 million having already been disbursed.
Initiating the Maryland tax refund process
Taxpayers who are uncertain as to their personal eligibility to take part in the refund program are encouraged to visitwww.WynneTaxRefund.Maryland.gov to learn more. Every case is different, and it is wise to enlist the aid of a tax professional who can advise on the specific application of the Wynne decision to an individual’s unique circumstances.
Contact a Baltimore tax lawyer today
At Rosenberg Martin Greenberg, we stand ready to conduct a comprehensive review of your tax situation, assess your eligibility for the refund and assist you with initiating the process of obtaining your funds.
For a confidential consultation to discuss your specific tax issues and concerns, contact Giovanni Alberotanza at 410.649.4990 or via email at firstname.lastname@example.org.