Tuition deduction differs for Maryland, U.S. taxes
When you take federal deductions for paying college tuition, you have to add it back in on your Maryland return. I did not know this. The state just billed me for $369 in back tax and interest for failing to add $4,000 in federal tuition deduction back into my 2008 Maryland income. (See instruction 12, code O in Form 502 instructions.) Should have used TurboTax.
Comments
Ouch - I hope I don't get bit by this. That really hurts after paying thousands for college costs. After switching majors, we celebrated when my son got into his choice, only to be shocked at the sticker price.
Posted by: SXS | July 15, 2010 5:55 AM
What a sham.
Posted by: NotableM | July 15, 2010 8:02 AM
Just happened to me too. I owe $180 in back tax and interest. Thank you for the reference because I am a new MD resident and didn't know if this was an error on my part or theirs. But looks like i goofed!
Posted by: Anonymous | March 15, 2011 6:25 PM
Just happened to me too! This is not clear at all in their iFile program, and now I also owe interest on my back-taxes. Great! Thanks MD!
Posted by: Aaron | March 30, 2011 10:48 AM