topic Maryland State Taxes, Verify no taxes for Capital Gains, Dividends in State tax filing

Maryland State Taxes, Verify no taxes for Capital Gains, Dividends

jfkern — Mon, 05 Apr 2021 14:52:09 GMT

Am looking for verification the Maryland excludes taxes on Stock sales Capital gains, Capital gain distributions and ordinary Dividends.

This is based on the Turbotax question

Capital Gains From U.S. Obligations are Tax Free

You can exclude capital gains from U.S. obligations because Maryland does not tax them

Enter any portion of your capital gains that came from U.S. obligations

Federal Total Total from US

Obligations

Capital Gains $26911 $26911

I have included all the amount as it is made up of Stock Cap Gains, Cap Gain Distributions and Ordinary Dividends, all from U.S. obligations.

Doe this appear correct ?

Re: Maryland State Taxes, Verify no taxes for Capital Gains, Dividends

DMarkM1 — Mon, 05 Apr 2021 15:37:19 GMT

When you say that all are from US obligations (100%) that means Treasury bills, treasury bonds, treasury notes, US savings bonds, Federally backed money market funds, etc. Normally your brokerage documents will have information confirming the US obligation numbers or you can ask them to provide the information if you haven't already.

Here is a definition of US obligations as well.

Here is a link with more information on the subject.

Re: Maryland State Taxes, Verify no taxes for Capital Gains, Dividends

jfkern — Tue, 06 Apr 2021 14:34:14 GMT

Thank you for your reply,

I was misunderstanding the meaning of US Obligations. For some reason this has never come up before.

I wrongly thought it was just US interests and not foreign entities.

So capital gains, interest and dividends that are not subject to US Obligations should be subject Federal as well as Maryland State taxes.