On May 27, 2014, the U.S. Supreme Court granted certiorari and will hear the case of Comptroller of the Treasury of Maryland v. Brian Wynne. The issue before the Court is whether a state is prohibited under the Constitution from taxing 100 percent of a resident’s income, earned both in and out of state with a credit for taxes paid on income earned outside of the state.
There is currently no date set for hearing the case. We will keep you updated as the case develops further.
Since there is no current resolution on the matter, affected taxpayers should continue to file protective claims to preserve their rights to Maryland income tax refunds should the Court rule in Wynne’s favor.
If you are interested in learning more regarding this issue and how it could apply to you, please see our previous blog posts at the links below or contact a Hertzbach advisor today.