Members of the Maryland Association of Certified Public...

Tax answers

April 03, 1996

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

Q: If my wife and I file separately, do the itemized deductions have to be split exactly in half between us or can one take predominant amount?

A: When married individuals file separate returns, itemized deductions that are expenses of each particular spouse are reported on each of their returns. Only in a situation when all itemized deductions were expenses shared equally would it be divided 50-50. Otherwise, deductions relating to each spouse would be shown on that spouse's return. In addition, if one spouse itemized deductions, then the other spouse also must itemize.

Q: On the disbursement of an IRA (I am over 70), federal taxes were withheld but no state taxes were. Am I required to pay state taxes?

A: The State of Maryland taxes IRA distributions the same as wage, pension and investment income. You should consider making Maryland estimated tax payments or request that the custodian of your IRA withhold Maryland tax.

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

Members of the Maryland Association of Certified Public Accountants will answer selected tax questions from readers until April 15. To ask a tax question, call Sundial, The Sun's telephone information service, at (410) 783-1800. Using a touch-tone phone, enter 6225 after you hear the greeting. Please leave your name and phone number in case a question needs clarification; names and numbers will not be published. Selected questions will be answered in the Business section. No questions will be answered by phone.

Pub Date: 4/03/96

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