"Dog Face" <nobody[at]nowhere.com> wrote:

- quote -

It's MD income regardless of what NC does. At issue is
whether you'll have a credit for taxes paid to other states
on your MD return.

--
Phil Marti
Clarksburg, MD

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Drew Edmundson wrote:

- quote -

Thanks for all the advice. Here's what I decided to do. I
am going to file a nonresident NC return on the hope that
they will refund the withholding. I am going to file an
extension for my MD return. If NC goes against me and says
I owe them, I'll count that as a credit on my MD return.
If, NC plays ball, I'll count the IRA distribution as MD
income.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"DogFace" <mdeckerz[at]gmail.com> wrote:

- quote -

In theory you file a return with NC showing no NC source
income. Then they should refund the withholding.
Unfortunately it seems to be hit or miss these days. They
have told me several times that if the 1099-R, W-2, etc
shows NC earnings then it is NC earnings and nothing short
of a corrected form will satisfy them. So far the amounts
have been relatively minor and my clients have not wanted to
pay my fee to appeal this up the ladder.

The NC Department of Revenue used to be very reasonable and
I still find the auditors are, but the processing people
often only see black and white.

You should include the income on your MD return but not the
withholding.

---
Drew Edmundson, CPA
Cary, NC

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"DogFace" <mdeckerz[at]gmail.com> wrote:

- quote -

You will have to file an NC state tax return to get back the
withholding. The forms are available online.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

"DogFace" <mdeckerz[at]gmail.com> wrote:

- quote -

You pay only MD. You'll have to file a nonresident NC
return to get your withholding back. You also need to set
the custodian straight.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Here's my situation. Thank you in advance for your
assistance.

I live in Maryland. My mother, who lived in North Carolina,
passed away in 2005. At the end of the year, the securities
firm where her IRA resided told me that they needed to pay
me her minimum annual IRA distribution. They issued a check
to me for the munimum distribution, and then rolled the
IRA's assets into a beneficiary IRA in my name. They
withheld both federal and North Carolina taxes from the
distribution paid to me.

Trouble is, I don't live in NC and don't pay taxes there.
Do I need to pay NC or MD taxes on this IRA distribution?
If as I suspect it's MD, how do I get my withholding back
from NC?

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >