Members of the Maryland Association of Certified Public...

TAX ANSWERS

March 25, 1995

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: I've just retired from the Social Security Administration and am getting an annuity from the federal government. When I turn 60 in six months, I also will get a pension from the Air Force. I moved to Maryland in 1970; my active military service was prior to that but I served in the reserve while living here. I'm planning on moving to North Carolina. Will Maryland come after me for state tax when I'm living in North Carolina? Am I going to get taxed twice? Do I have to notify the state that I am moving?

A: Maryland will tax you as a nonresident only on income received from tangible real or personal property permanently located in Maryland; for example, rental property. Maryland will not tax you as a nonresident on other sources of income, such as retirement pay. States, generally, do not tax twice; they either exclude income derived from other states or provide a credit for tax paid in another state. When you move, there is a question to answer on your final Maryland return regarding your last day of residency in the state.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear a tax tip. Selected questions will be answered in the Business section. No questions will be answered by phone. Please leave your name and phone number.

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