DC D 30

[jasdlm]

What is the skinny on this return?  My clients are each SMLLCs.  I can't determine whether they need to file the D 30.  In reading the publication, they are not 'unincorporated', technically, although some of the 1099-Misc documents came in their individual SSNs and some in the Tax ID of the LLCs.  ATX added a D 30 to the return, and there is a huge refund on the DC D 40 and a huge balance due WITH interest on the D 30.  Sure there is some way to link the 2 if the D 30 is required?

This Kansas Girl is mystified.  I'm feeling like I can maybe override ATX and delete the D 30 given this portion of the instructions publication:

WHO DOES NOT HAVE TO FILE FORM D 30

"It is a trade, business or professional organization where: - more than 80 percent of its gross income is derived from personal services actually rendered by owners or members of the business; and - Capital is not a material income-producing factor; or"

They are both consultants; they sell their time.

Any help is greatly appreciated.

[Pacun]

3 hours ago, jasdlm said:

In reading the publication, they are not 'unincorporated', technically,

If they are not unincorporated, then they are incorporated and they need to file D-20.

So, they are unincorporated. The question is: Do they have to file form D-30? Maybe not. 

As a solo Tax Preparer, I don't file that return even If I made $50K. I think I will have to file it if I have employees. 

I file several D30s for people that rent their houses or basements as long as they make more than $12K a year. Remember that this is before depreciation and expenses. Most people end up with negative numbers and they pay the minimum required by the return, which is $250 

The fact that you have a huge refund on one and a huge bill on the other, means that they are linked.

If I make $100,000 and I have $10 in withholding for DC, if $80,000 of my salary goes to D30, then my D40 will have only $20K in income and I will get back almost the whole amount of withholding but the business form will have a huge bill.

After I have determined that this person doesn't have to file D30, I delete everything related to D-30 and everything is transferred back to form D40. 

[Hahn1040]

I know this is an old topic but I have a question that flows from this:

MY client lives in MD thus files as a MD resident.

She has a rental in DC.  Gross rent is $20,000+

so she files a DC D-30 for the rental.  She has net income, so she pays tax to DC

Does she get a credit on the MD return for the DC tax?.  the rental income is part of her MD taxable income

AND is the DC tax deductible on Schedule A?  It certainly is a tax on income, but it is not called "income tax"

i keep thinking that i should know this...but I am second guessing myself.

thanks so much!

[Abby Normal]

16 hours ago, Hahn1040 said:

Does she get a credit on the MD return for the DC tax?. 

Yes.

I do this with K1s from partnerships in DC. I amended 3 years of MD returns prepared by an expensive DC law firm and got my new client back nearly 30k in MD refunds.

But in the case of K1s, or other businesses, if the business deducted the DC tax as an expense, you have to also add the amount of tax deducted from the business income, as a MD addition to income. But you come out way ahead with the credit