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

[jfkern]

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 ?

[DMarkM1 · Accepted solution]

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.  

[jfkern]

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.