Question from a reader:”Hey, Kim, is it true that Maryland gives $15000 in breaks for taxes to soldiers?”
My answer is yes, there could be a break for you if you are in the Armed Forces. If you were stationed in a combat zone, Maryland lets it’s native sons and daughters (well, Maryland residents) get a $15000 subtraction from their taxes.
The subtraction modification for military pay received by military personnel stationed overseas under the Maryland State income tax to the first $15000 of military compensation paid to or incurred by any active duty military personnel.
If you are stationed in Virginia, sorry, that doesn’t count.
The stock market has been trying to crawl back a little at a time, due in part to the economic stimulus trying to make it through the Senate. It will take some time to get the money and credits through to the public. I think the market will continue sideways at least for another quarter or two until money starts loosening into the American public and once all the layoffs start happening.
What else is new…Here in Los Angeles, there was a city and United Way kick off to make more people aware of Earned Income Tax Credit. I think that is great but the problem that people need to know is that the IRS is really going to scrutinize the returns with EITC and the preparers because of so much fraud. I have talked about it before in the blog and my stand on this is if you can legitimately claim EITC, go for it. If you try and qualify and can’t please don’t push your luck and don’t ask your tax preparer to do anything illegal.
No word yet as to what will happen after the 30 days for the California refunds or warrants question. An interesting proposal by the Governor is that we have a booze tax to raise shortfall tax revenue and income for the state. Surprisingly, or maybe not surprisingly if you ask or polled people who don’t drink, most people said they wouldn’t mind a booze tax.
If you are applying for bank reund anticipation loans (also known as RALS), be aware that if you are due to get any outstanding tax rebate incentive that you didn’t get last year that you may not qualify for the RALS. Just a reminder that if you are in the armed forces you can’t take a RAL either. You can apply for a refund anticipation check (RAC), I believe.
I think that is all that I have on stream of consciousness stuff. The W-2s are out and people are coming around with 1099s so tax season is getting into gear. Just a reminder that the combined 1099Bs don’t come out till mid February.
Stay warm, get wealthy, happy and be healthy!
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Kim Isaac Greenblatt