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Maryland sponsors a website for doing state income taxes (with certain exceptions) free on their site. It may cost a nominal fee to efile it. https://interactive.marylandta...

If you live in maryland, you should know the comptroller site contains both iFile (for individual) and bFile (for business). https://interactive.marylandta...

Opens Jan 20th.

It might - at first glance - seem from this and this that out of state programmers wouldn't be considered goods. But of course they didn't make it that easy for out of state programmers.

While it's true that Use Tax only applies to goods sold out of state, if a service is performed out of state, then in order for its effect to make it into the state it must produce a good that is transported across state lines - making it a target of the Use Tax.

And if the service is performed inside the state, then it already is taxable.

I live in MD, and work near DC - but still in MD - contracting to the Federal Government. This means it'll be harder to find a private sector job which doesn't lead back to government contracting. Blech.

Then again, if I were only going to be a Federal Contractor, then I wouldn't care - the government (Feds and State) is immune to sales/use tax for contracted services.

It might - at first glance - seem from this and this that out of state programmers wouldn't be considered goods. But of course they didn't make it that easy for out of state programmers.

While it's true that Use Tax only applies to goods sold out of state, if a service is performed out of state, then in order for its effect to make it into the state it must produce a good that is transported across state lines - making it a target of the Use Tax.

And if the service is performed inside the state, then it already is taxable.

I live in MD, and work near DC - but still in MD - contracting to the Federal Government. This means it'll be harder to find a private sector job which doesn't lead back to government contracting. Blech.

Then again, if I were only going to be a Federal Contractor, then I wouldn't care - the government (Feds and State) is immune to sales/use tax for contracted services.

I think I shall start advertising in Maryland.

Read up on "use tax" before you make your business plan. Maryland companies can't avoid the tax by going out-of-state.

I'm no longer a Maryland resident, but I'd probably have to file a non-resident income tax form at the end of the year just to pay this tax.

Nope. Completely different tax, completely different forms.

I do custom programming work in Missouri. All you Maryland folks can call me for tax-free work.

I'm sure we'll still be responsbile for paying the use tax, just as if we ordered goods from you. As our Comptroller's website explains:

Every state that has a sales tax also has a use tax. Maryland's use tax protects Maryland businesses from unfair competition. Local businesses would be at a competitive disadvantage if consumers were entitled to a 5 percent discount on items purchased from out of state businesses.

Of course, no one actually pays the use tax they owe on stuff they buy for personal use from out of state companies. (Most people probably don't even know they owe it.) But if I think I might lose a programming gig because someone thinks they have to pay tax if they hire me and not if they hire you, I'll be sure to set them straight.

Maryland already taxes security Guard Services, dry cleaners, maybe more: http://business.marylandtaxes.com/taxinfo/comar/sub6.asp

You can find it at https://ifile.marylandtaxes.com/

Check with your state, but Marylanders can efile at no cost through the treasurer's website.