Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.
How can I get a refund from the state of Maryland for income tax wrongfully withheld for work done here when I am a resident of a tax state that has no reciprocality with Maryland; i.e., there is no state withholding or income tax withheld in my home state? The company is not cooperating and wrongfully withheld state income tax. My state has no income tax. This is a short-term employee. I am not a resident of the state of Maryland.
The taxpayer is confusing place of work with place of residence. Unless Maryland has a reciprocal agreement with his state -- and he indicated that was not the case -- the employer will withhold Maryland income tax from wages earned in Maryland. The taxpayer is responsible for filing a nonresident tax return to report the wages and pay the tax. If the tax withheld is more than the liability, the taxpayer will receive a refund. This is often the case with a college student who works in Maryland during the summer break but whose permanent residence is in another state.
Carol I. Katz, CPA Leonard J. Miller & Associates
The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.
To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. To submit questions by e-mail and access an online tax guide, go to The Sun's Web site at www.sunspot.net/tax.
Selected questions will be answered in the Business section. No questions will be answered personally.
Pub Date: 2/17/99