The Real Impact of the Wynne Decision

Yesterday’s decision in Comptroller of the Treasury of Maryland v Wynne Et Ux generated some reporting in print media. Yet much of what I saw was incorrect in part or in whole.

New York does give full tax credits for individuals with out-of-state income; I do not believe they will be impacted. However, many states do not give credits for local taxes. Joe Kristan highlighted Iowa today; Kentucky is another state that does not currently offer such tax credits. Under Wynne I believe they’ll be required to offer such credits. (I only know about Kentucky because I had a client impacted by this.) Joe noted that Tax Analysts saw that North Carolina and Wisconsin (along with a host of local governments) also don’t offer such credits. That’s where I think the real impact will be.

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This entry was posted on Tuesday, May 19th, 2015 at 9:29 am and is filed under Kentucky, Maryland, New York, North Carolina, Supreme Court, Wisconsin. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

2 Responses to “The Real Impact of the Wynne Decision”

  1. Tax Roundup, 5/20/15: April 15 is on April 18 next year. And: exit > voice. « Roth & Company, P.C says:
    May 20, 2015 at 5:55 am

    […] Fox, The Real Impact of the Wynne Decision: “However, many states do not give credits for local taxes. Joe Kristan highlighted Iowa […]

  2. John P. says:
    June 2, 2015 at 3:11 pm

    My cursory reading suggests New York may be affected.
    While the State gives a credit to it’s residents for income taxes paid to other states (the Resident Credit), it applies only to the NYS portion of the income tax, not NYC nor Yonkers income taxes.
    This seems analogous to the MD situation, where the credit applied to the state tax, but not the income tax applied by the counties.
    Would be interested in hearing thoughts on this.