Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
Q: I have a college student who spent the summer living at his college, has earned no income in Maryland but does have some interest and some dividends declared here, and has earned income in Pennsylvania. Does he have to file a Pennsylvania state tax form as well as a Maryland state form?
A: If the child has unearned income (dividend or interest) of $1 or more, then he or she must file a federal return if the total of the earned and unearned income is greater than $650. A Maryland resident working in Pennsylvania is not required to file a Pennsylvania return. There is a reciprocal agreement between the states. However, if Pennsylvania income tax was withheld, the student would be required to file a return to claim the refund. Maryland does not require the filing of an income tax return by a dependent child until the total earned and unearned income exceeds $6,400.
Q: I'm 64 years old and still employed. Can I continue to contribute to my IRA, and if so, to what age?
A: Contributions can be made up to, but not including, the year in which a taxpayer with taxable compensation attains age 70 1/2 . Other rules affect the amount you can deduct from your taxable income. Your personal situation dictates whether contributions are economically advantageous.
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
A joint service from The Sun and the Maryland Association of Certified Public Accountants can help you with your tax queries. Association members, all CPAs, will answer questions from readers until April 15. To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Using a touch-tone phone, enter 6225 after you hear the greeting.
Callers are asked to leave their names and phone numbers should questions need to be clarified. Selected questions will be answered in the Business section. No questions will be answered by phone. Names and numbers will not be published.