Tax questions

February 13, 1999

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

Until May 1998, my primary residence was a home that I own in West Virginia. In May 1998 I moved to a retirement community here in Baltimore where one pays a fully refundable entrance deposit and then a monthly fee. For tax purposes, am I a resident of Maryland via the retirement community or West Virginia, where I own a home?

The taxpayer moved in 1998, lives in Maryland and would be considered a resident. The taxpayer should file a resident return, completing the top of page one with the part-year information. In the year of the move, the taxpayer would include all the income reported on the federal return but would subtract the income earned while a resident of West Virginia (on Line 13 of Maryland Form 502). The detailed instructions for part-year Maryland residents in the Maryland forms and instruction booklet explain how to adjust deductions and exemptions for the partial year.

Carol I. Katz, CPA, Leonard J. Miller & Associates

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

To ask a tax question, call Sundial, The Sun's telephone information service, at 410-783-1800. Call 410-268-7736 in Anne Arundel County, 410-836-5028 in Harford County, 410-848-0338 in Carroll County. Using a Touch-Tone phone, punch in the four-digit code 6225 after the greeting. You can also submit questions by e-mail through The Sun's Web site: www.sunspot.net. Click on Business.

Selected questions will be answered in the Business section. No questions will be answered personally.

Pub Date: 2/13/99

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