Thought I Was Done - State Tax on Foreign Earned Income Exclusion

[dascpa]

He works for US Gov, she works for USO.  Live in Japan.  His is taxable to Maryland.  Hers is Federally excluded due to Foreign Earned Income Exclusion.  Certain states accept the exclusion, others do not.  Online only info is a few tax preparers say yes and others say no.  Called Comptroller of MD Tax Pro Help Line.  Clueless but they said it is not taxable.  I asked for documentation for my files.  They could not give me any.  Does anyone KNOW whether her income is an addition adjustment and taxable in Maryland.

[Skylane]

@sjrcpa  would you know about this? i looked  in MD instructions. Couldn’t find anything.

[rbynaker]

While you're waiting for Susan to arrive . . . 🙂  MD conforms to federal with exceptions.  I don't see section 911 or foreign earned income exclusion as one of the exceptions.  There's also no "add back" code for it in the instructions.  Not exactly a "cite" but I'm not sure how you prove something doesn't exist.

[sjrcpa]

I agree with Rick.

MD allows the foreign earned income exclusion but I have no cite either.