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MD relief act

Due to COVID I received unemployment but state taxes were never taken out, which means I have to pay the unemployment state taxes . I filed my taxes before MD passed the relief act that make state taxes for unemployment refundable. Do I still need to pay the unemployment taxes?? And which I already filled my taxes, how do I amend it and what form do I need?

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1 Reply
DawnC
Employee Tax Expert

MD relief act

You will only be refunded the amount of state taxes you already paid on the income - - taxes that were either withheld, or taxes you paid when you filed your tax return.  

 

If you have already filed and included your unemployment income on your tax return, then you paid the income tax on that income.  In that case, you will need to file the amended MD state return.   The amended returns section won't be ready until the end of March, so you can come back then and prepare the amendment, but you should wait until your original returns are processed by the IRS and state of MD.   You will be refunded the state tax you paid with your MD return when you file the amendment.    It will be on Form 502X which is included in TurboTax.  

 

If you did not include the unemployment when you filed, then you will still need to file the amendment, although you won't be taxed by Maryland (once TurboTax updates the software; the law just passed recently).   But the income needs to be reported on your federal return.   Form 1040X is the federal amended tax return.   But if you already reported it when you filed, you won't have to amend the federal return.  

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