Individual Income Tax Insights: Significant U.S. Supreme Court State Tax Decisions Made 2015 

If you live in Maryland, are a high earner or are in a same sex marriage, significant court rulings were made in 2015 that affect your tax bill.

Maryland

If you live in Maryland and worked in another state, you may get a tax credit.  The state of Maryland is issuing refunds to individuals who paid taxes in other states in light of the Wynne decision.

In May, the U.S. Supreme Court issued a decision on Comptroller of Maryland v. Wynne, ruling that Maryland’s personal income tax structure, which didn’t offer a credit for taxes paid to other states at the county level, violated the dormant commerce clause.

High Net Worth Individuals with Businesses doing Business in Multiple States

The Wynne decision is also very relevant to high net worth individuals as they own businesses tat pay taxes in other states.

Another issue that the Wynne decision highlighted is just how thorny the tax jungle is for high net worth individuals. Most of those affected by the Wynne decision pay taxes in other states because they own companies that do businesses in many states. Being wealthy also makes estate planning more complicated, as highlighted in a blog post by Bloomberg BNA’s Genie Nguyen. Many companies find themselves having to pay substantial death benefits to their top earners in order to provide them some flexibility with their wealth.

Same-Sex Marriage

One of the most significant U.S. Supreme Court decisions last year is Obergefell v. Hodges, legalizing same-sex marriage in all 50 states. But the decision also has a significant impact on income tax filing for same-sex married couples. Same-sex married couples can not only file their taxes jointly going forward, but they may be able to get refunds from states that required same-sex married couples to file separately in prior years

Source: Individual Income Tax Insights: U.S. Supreme Court Made 2015 a Banner Year in State Tax

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About HDA Consulting, LLC

HDA Consulting LLC provides a variety of accounting services including; forensic & litigation consulting, fraud & embezzlement investigation, payroll & tax. http://hdaconsultingllc.net. Try TSheets https://www.tsheets.com/#a:hdaconsulting
This entry was posted in High Net Worth Individuals, Marriage penalty, Same Sex Marriage, State Tax, Tax and tagged , , , , , , , , , . Bookmark the permalink.

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