Friday 6 February 2015

The SALT Shaker: The State of Maryland is Ready for Tax Season

The State of Maryland has issued updates and reminders for individual and business taxpayers that will impact the 2014 returns prepared during tax season 2015.

  • Maryland began processing 2014 individual income tax returns on January 20th. 2014 business returns processing began on January 9th.
  • Certain tax credits may only be claimed on electronically filed forms:
    • Businesses and individuals must claim business income tax credits by electronically filing Form 500CR or 502CR.
    • Form 500 or 510 must be filed electronically to claim a Sustainable Communities Tax Credit from Form 502S.
  • There are new tax credits for business taxpayers including credits for qualified vehicles (Class F tractors) and cyber-security investments.
  • The maximum pension exclusion for qualified taxpayers has increased to $29,000 for 2014.
  • For tax year 2014, Maryland is no longer decoupled from the federal itemized deduction limitation threshold.
  • There are new subtraction modifications available for tax year 2014 including:
    • Up to $1,500 of approved un-reimbursed expenses that a foster parent incurs for a foster child.
    • The amount of student loan indebtedness discharged due to total and permanent disability or death.
Please contact the SALT Group if you have any questions regarding these Maryland updates for tax year 2014.

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