SoccerMom2
New Member
I got a letter in the mail saying i have to claim my Maryland tax refund from last year as earned income. Did anyone else get this?
States Taxes
- Thread starter SoccerMom2
- Start date
Chasey_Lane
Salt Life
Did you get a 1099? If you received money back last year from MD withholding, you are required to claim it as income.
GWguy
*
Every year for the past 10 years. If you file a claim with the state and get money back, you have to report that money.
K
Kain99
Guest
You've always had to do that....................................
SoccerMom2
New Member
No. We lived her not even 2 month. The Hubby got 3 paychecks last year while living in MD.
aps45819
24/7 Single Dad
Welcome to Maryland. They taxed it last year when they withheld it, now they're going to tax it again.
Think of it as a service charge that MD levies against you for giving them intrest free use of your money.
The best way to handle this is to juggle your claimed deductions (dependants) to get as small a refund as possible next year.
I currently claim 6 on my withholding.
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SoccerMom2
New Member
It is crazy. My Hubb yis from MD and he was in the navy. He always claim MD as his states. When we got married our first tax return got messed up because he owed maryland. Now that we live her now it seems we get crewed again. Luckily it is not that much but still. The government will always find away to take your hard earned money!
MMDad
Lem Putt
You have to report it on your federal return because it was a deduction last year. You then take it back from Maryland. Maryland is not double taxing it.
Essentially, you did not get federally taxed on that earned income last year, and since you did not actually receive that income until 2008 you pay for it on your 2008 return.
It is actually one of the few tax laws that makes sense.
hotcoffee
New Member
Yes... everyone gets that... you have to report all income on your federal return....
People blame MD for it but actually it's income and it should be reported as income on the Federal Return.
When you get to the Maryland return, you won't have to claim the refund you got from the Federal Return, and you will remove the refund you got from MD from your adjusted income for MD taxes....
The tax software [and instructions for the paper filing] will walk you through it.
SoccerMom2
New Member
Thank you everyone. Just didn't want to think we did something wrong.
We've always gotten one. That amount was deducted from your adjusted gross income last year as taxes paid to your state when you filed federal last year. You never paid federal income taxes on that amount. When you do your state taxes you will deduct that amount before you figure your tax.
Now if you want to talk about our tax rates and how much we have to pay to those idiots in Annapolis....
Beta84
They're out to get us
So basically, they give you back money that you earned and shouldn't have been taken away from you in the first place. Then they say that counts as money you earned for the next year? How does that make any sense? It was earned during the previous tax period! Just because they gave you back the money doesn't mean it was earned that year. Stupid Democrats.
hotcoffee
New Member
If you had taken the time to calculate the correct withholding for Maryland Taxes, you would have received that money in your paycheck or as income on your business bottom line.... Stupid Republican....
Beta84
They're out to get us
If you had taken the time to calculate the correct withholding for Maryland Taxes, you would have received that money in your paycheck or as income on your business bottom line.... Stupid Republican....
Not a Republican either
So there's a way to get your taxes where you neither owe nor are owed money? Someone has to show me how this works!
But it looks like the post above mine answered what I was wondering...it was adjusted out of income, no taxes were paid on it, so when the money came back it still needed to be taxed...and just gets taxed the following year. Or maybe I'm still reading it wrong. :shrug:
MMDad
Lem Putt
That's pretty much it. If you want to know more it's on irs.gov, but reading that stuff will put you to sleep.
aps45819
24/7 Single Dad
Not a Republican either
So there's a way to get your taxes where you neither owe nor are owed money? Someone has to show me how this works!
increase the number of dependants on your withholding form (W4) so you break even.
awpitt
Main Streeter
Nope.
On your Fed return, you get to deduct all State taxes withheld on your W2. If you withheld too much state taxes resulting in a refund, you must claim the refund for the year it was recieved. That's why we get a 1099 from MD for your Fed return.
awpitt
Main Streeter
This has nothing to do with Dems or GOPers.
You need to redo your W4 and you won't have this problem.
awpitt
Main Streeter
Not a Republican either
So there's a way to get your taxes where you neither owe nor are owed money? Someone has to show me how this works!
But it looks like the post above mine answered what I was wondering...it was adjusted out of income, no taxes were paid on it, so when the money came back it still needed to be taxed...and just gets taxed the following year. Or maybe I'm still reading it wrong. :shrug:
Turbo Tax has a calculator that will work yu through some questions about last years tax picture and what you expect to earn in the coming year and it will produce a W4 form for you to print out and give to the payroll dept at work.
hotcoffee
New Member
I think the correct form is a 508SW? I don't have it on my computer... but re-doing the W-4 would change the Federal instead of the State...
Most people just overlook the instructions on the State because they put so much work into the Fed and it seems the same... but it's actually good to read and follow all tax forms....