That’s right. I now owe the state some of my refund (which I spent, like any red-blooded American) plus interest. Why? I didn’t let them get their greedy fingers on my federal tax deduction for the tuition I paid out of my own pocket.

Here’s the deal: You have to mark all of the deduction (that is, the tuition you ALREADY PAID) as “additional income” on the Maryland tax return. This meant that my refund was cut by around $230. How much did I gain on my federal return because of the tuition deduction? I doubt it was much more than $230.

Now I was told I owe them that plus interest on the money from my 2007 tax return. They told me that they don’t waive the interest because it’s “so low” ($30 is not low for something that I could’ve avoided if this ridiculous clause were pointed out).

Not only that, but they had the gall to inform me that they automatically audit individuals that claim tuition deductions on their federal returns. What does this mean? It means that you knew nearly immediately that I needed a correction, but waited until a year later to tell me, with interest? This screams to me that this is simply a way for the state to make money, just like their ridiculous speed cameras.

I wish I could express how angry I am that this law even exists, but I’m almost more angry that this is something that I can’t seem to find via Google. Where are the complaints against this ludicrous practice? I know I’m going to find as many politicians to voice my feelings to as possible.

Summary:

Live in Maryland and want to attend school? Screw you, we don’t have incentives here for that. You want a tax refund? You think you don’t owe us if you broke even? HAH! Think again. Oh, and tell the IRS thanks for the extra dough that we can spend on ineffective legislation like banning texting in cars!!

Sincerely,
The State of Maryland