Virginia: No deduction for taxes paid to MD in error

If you live in one state but work in another, your employer will generally withhold and remit taxes to the state where you are working - not where you are living. However, you will owe tax to your state of residence on all the income you earn, regardless of where you earned the income. Your home state will probably give you a credit for taxes paid to other states so you will only wind up paying tax to one state. For example, if you are a resident of DE working in MD:

• if you paid $150 to MD but DE would have charged you $100 on that income you will receive a $100 credit.

• if you paid MD $80 but DE would have charged you $100 on that income you will receive an $80 credit.

Some states will not give you the credit at all so you do wind up double paying. Some adjacent states have adopted reciprocity agreements. In these cases, your employer may withhold and remit only the tax for your home state. VA ruled that since reciprocity with MD is available if it is not taken advantage of (i.e. a VA resident working in MD still withholds and remits MD tax) VA will not offer a credit for the taxes paid in error. Hopefully the taxpayer in this case was able to obtain a full refund from MD!

Maryland renews and expands Enterprise Zones

Enterprise Zone Tax Credits

Real property tax credits – Ten-year credit against local real property taxes on a portion of real property improvements. Credit is 80% the first five years, and decreases 10% annually to 30 percent in the tenth and final year.

• Income tax credits – the one-time $1,000 credit per new worker. For economically disadvantaged employees, the credit is $6,000 per employee over three years.

 

Focus Area Tax Credits

Businesses in Baltimore City or Prince George’s County enterprise zones may be eligible for the following tax credits:

• Real property tax credits – Ten-year, 80% credit against local real property taxes on a portion of real property improvements. (does not decline as it does with the standard benefit).
• Personal property tax credits – Ten-year, 80% credit against local personal property taxes on new investment in personal property within a focus area.
• Income tax credits – a one-time $1,500 credit per new employee. For economically disadvantaged employees, the credit is $9,000 per employee over three years.

Here are some links to additional info:

http://www.choosemaryland.org/businessresources/Documents/Enterprise%20Zones/enterprisezones061512.pdf

http://www.choosemaryland.org/businessresources/Documents/Writeable%20Forms/EZQAProperty2011.pdf

http://www.choosemaryland.org/businessresources/Documents/Writeable%20Forms/EZQAIncome2010.pdf

 

NJ Nexus news - part 7

The Director of NJ Division of Taxation may, when necessary, regard a salesperson, representative, independent contractor, solicitor, trucker, peddler or canvasser operating in New Jersey as an agent of the dealer, distributor, supervisor, employer or person under whom the agent operates or from whom the agent obtains the tangible personal property sold by the agent, regardless of whether the agent is making sales on the agent’s behalf or on behalf of such dealer, distributor, supervisor, employer, or person, and that the director may so regard the agent and may regard the dealer, distributor, supervisor, employer, or person as a seller for purposes of the sales and use tax.

NJ Nexus news - part 6

NJ nexus news: Persons who is engaged in the business of selling tangible personal property, directly or through a subsidiary or other related entity, to purchasers in New Jersey by mail, telephone, the Internet or any other media, and who has a contractual relationship with an entity to provide and perform delivery, installation, assembly, or maintenance services for that person’s purchasers within New Jersey will be deemed sellers for purposes of being required to register to do business in New Jersey and collect/remit sales tax.

NJ Nexus News - Part 5

Persons who are engaged in the business of selling tangible personal property, specified digital products, or services, the use of which is subject to tax in New Jersey, and who use a trademark, service mark, or trade name that is the same as the trademark, service mark, or trade name used by an affiliated person in New Jersey will be deemed sellers for purposes of being required to register to do business in New Jersey and collect/remit sales tax.

NJ nexus news - part 4

Persons who derive receipts from the lease or rental of tangible personal property situated within New Jersey will be deemed sellers for purposes of being required to register to do business in New Jersey and collect/remit sales tax.

NJ nexus news - part 3

Persons who hold a substantial ownership interest in, or are owned in whole or substantial part by, a business that maintains an office, distribution facility, sales or sample facility, warehouse or storage place or other similar place of business in New Jersey that delivers tangible personal property or specified digital products sold by the person to customers will be deemed sellers for purposes of being required to register to do business in New Jersey and collect/remit sales tax.