Supreme Court ruling a WYNNE for Maryland taxpayers

Maryland Credit for Taxes Paid to Other States Declared Unconstitutional

In a 5-4 decision, on May 18, 2015, the Supreme Court upheld the Maryland Court of Appeals decision in Wynne v. Maryland State Comptroller, Md. Cir. Ct., Howard County, Case No. 13-C-10-80987 that Maryland’s credit for taxes paid to other states was unconstitutional.

Maryland’s tax consists of two (2) components, the state tax and the local tax.  Previously, taxpayers only received a credit for taxes paid to other states for the state portion of the tax, not the local portion. 

The ruling allows taxpayers to file amended returns for open years (generally the last 3 tax years) and recalculate the credit for taxes paid to other states on both the state tax portion and the local tax portion.

In April, 2015, Maryland added language to the budget that would allow for the credit calculation, if the State lost the case.