Supreme Court ruling throws out state taxation policy

 

States cannot double-tax income earned out of state, the U.S. Supreme Court ruled Monday.

The court was considering whether states should provide taxpayers a full credit for taxes paid to other states on income earned in those states.

The case was filed by Howard County residents Brian and Karen Wynne.

The Wynnes filed the case after they tried to claim an income tax credit for taxes paid to other states on their 2006 tax filing. The credit was denied, in part. The state allowed a credit against their Maryland state income tax, but not against their county income tax.

On Monday, the Supreme Court struck down the tax system in a splintered 5-4 decision.

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By Kate S. Alexander, SoMdNews.com

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