Semi-Retired wrote: Isn't the standard deduction for Maryland much less than $11,000 or $12,000?
Remember you have to compare the total of the personal exemptions plus the standard deduction to the proposed NC $12,000 (married) deduction.
For 2012, Maryland allowed $3,200/person ($6,400 for married filing jointly) plus the standard deduction which is complicated, but use $4,000 for comparison. MD $10,400, NC $12,000
The STANDARD DEDUCTION METHOD gives you a standard deduction of
15% of Maryland adjusted gross income (line 16)
with minimums of $1,500 and $3,000 and maximums of $2,000 and $4,000, depending on your filing status. If your income is over $26,667 then it is limited to $4,000.
But remember, MD taxes federal retirement pensions etc. and NC doesn't (if qualified/vested per Bailey Decision). And property taxes are high to go along with high housing costs...
Mortgage interest is allowed if you itemize deductions in Maryland.
EDIT: But as posted above, it was proposed to be reduced at certain income levels. But it didn't pass in Nov 2012. Will they try again? Will the federal govt try to eliminate the mortgage interest deduction???
Link to article on MD proposalThe proposal would reduce the amount of itemized deductions by 10 percent for individuals and couples earning more than $100,000 in gross income. For individuals and families earning more than $200,000, homeowners would see a 20 percent reduction in their itemized deductions.EngineerJim2013-06-08 10:35:03