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The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

 
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8 Replies
dmertz
Level 15

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

TurboTax bases the Maryland local tax rate on the county or city jurisdiction that you selected when preparing your Maryland tax return.  0.0283 is the rate for Baltimore County.  If you do not live in Baltimore County, you selected the wrong jurisdiction.  Maryland is claiming that your rate is 0.0320, the rate for Baltimore City, Howard County, Montgomery County, Prince George's County, Queen Anne's County and Wicomico County.  The simplest mistake to make would be to indicate that you live in Baltimore County when you actually live in Baltimore City.  The only other of these that borders Baltimore County is Howard County.

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

I did not "select a jurisdiction" but only entered my address.  With that entry, Turbo Tax should have calculated the local tax rate correctly
dmertz
Level 15

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

TurboTax has no way determine the jurisdiction in which you reside from your address.

It seems unlikely that could have resulted from leaving the jurisdiction blank.  If left blank, TurboTax prohibits e-filing and defaults to using a rate of 0.0320 (the highest rate of any jurisdiction).  The only reason that TurboTax would use a rate of 0.0283 would be if a jurisdiction having a 0.0283 rate was selected.  Baltimore County is the only jurisdiction with a 0.0283 rate.

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

Sometimes more than one municipality uses the same zipcode.

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

this happened to me too...they have it as 0.0283 and its supposed to be 2.83

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

Those are the same.  It is 2.83% which is .0283 when you use it to multiply.

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

FWIW, I just completed my TurboTax forms for Federal and Maryland, and the Maryland tax form 502 instructions indicate, for tax year 2019, a local tax rate of .0281 for my ANNE ARUNDEL location.  I reviewed the state form that was completed via TurboTax and discovered that TurboTax used a rate of .0250, and that means I will be filing an incorrect return!  I am unable to make any adjustment to the form!  How do I correct this? If my credit card has already been charged.

The State of Maryland is claiming that the Local Tax computed by Turbo Tax in the amount of $6,045 and based on the local tax rate of 0.00283 is incorrect and that the Local Tax after Credits should be $6,835.42

Correction to typo in my post.  My credit card has indeed been charged, and the tax for Maryland is incorrect!  So, now I have to press the button to file my Maryland form 502, KNOWING that the local tax rate is incorrect!  Is TurboTax going to EXPLAIN this error to the Comptroller of Maryland?  I am more than a little upset about this.  This is going to delay my refund, which should be less than HALF of what TurboTax has indicated, and someone in the Comptroller's office is going to have to issue a correction, and then I'm going to have to wait, and wait, and wait.... and possibly pay a penalty because you didn't update the local tax rates.  

 

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