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They probably will if it affects the filing of 2020 MD taxes.
BUT
The state of MD tax division (Comptroller) and staff must first set up the rules for how it will be implemented, as there are limitations on who is eligible to have the taxes exempted.....that could take a month or more...and they have to get that programmed into their own MD computers..... only then will they tell the tax software companies how it is to be implemented....then that takes another month or so to program at the software end....so my guess is June...but I'm a pessimist.....end of March if they work fast and keep it simple.
Foolishness is a legislature that makes changes to last year's taxes right in the middle of the tax season with easily thousands of MD tax returns already filed.......absolutely crazy foolish nonsense .
Heck...maybe they'll just reject all tax returns already Efiled...and shut down until they are ready to receive them after they get all the forms and rules modified.....I figure they'll have guidance on what to do by the end of the week.
The worst part is they signed the act yesterday and there is no detail out yet when and how it's going to be implemented. I hope all Marylanders don't have to wait till end of March.
Here is the information about the Maryland RELIEF Act. It is based on ones 2019 tax return and no one needs to apply. It is an automatic payment.
{Edit 9:40 AM PST}
Hi. Does anyone know how the relief in taxes paid on Maryland Unemployment will be worked out? Apparently we should get the taxes back that we paid in from what I understand? Is that correct?
Yes. You will get the taxes paid on your unemployment for 2020 if you file an amended return. This law was just recently passed, so I would wait until the State of Maryland advises on when to file an amended return before you do so. Also, please keep in mind that the tax free unemployment waiver only appears to apply to single filers who reported under $75,000 or joint filers who reported under $150,000.
Thank you! I actually have not filed yet. Should I wait and give it time for the system on TurboTax to update and then file?
You can wait, but it will probably be a few weeks before all the necessary updates are made - both by MD and TurboTax.
MD will have update its tax return processing software (internal rules) and publish those changes before TurboTax is able to update its MD state tax interview.
Still, waiting until those changes are made is probably a better option than filing an amended return.
They are referring to the repealing of the MD State and Local Taxes on Unemployment in the 2020 year and 2021- Filling 2020 using tax preparers websites they automatically figure State Taxes as well as Federal and without an update, they will be incorrect.
Here is a link with more details to the new act 2021. I think, like many you have suggested, to wait couple of weeks to file rather than amending taxes. They should have got this signed back in Dec.
What if you filed married filing separate and made under $75,000?
As I’m understanding it we would just need to file an amended state return if we already filed before this major change took effect. I owed taxes to MD and assume this will take care of that so it’s kind of imperative they figure it out soon.
@gower2352 Yes, you need to file an amended return but when will be based on how you chose to pay..
If you said to draft it from you bank account, then that needs to happen before you file an amended return.
If you said you will mail it in, then you can do the amended but will have to correct the program and mark that nothing has been paid.
Once your return is accepted and the finances are settled bank paid or not paying, you can file an amended return.
Hi Lena,
Thank you so much for this information. Have you seen any updates as to when we should file that amendment to get this state approved relief?
Thanks so much!
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