. Use the LUMP SUM DISTRIBUTION WORKSHEET (12A) to determine the amount of your addition. You are not required to itemize deductions on your Maryland return simply because you itemized on your federal return. . . Married persons filing separately. REFUNDABLE BUSINESS INCOME TAX CREDITS. Complete your federal return before you continue beyond this point. k. RESEARCH AND DEVELOPMENT TAX CREDIT. Enroll If you and your spouse both qualify for the pension exclusion, combine your allowable exclusions and enter the total amount on line 10, Form 502. We last updated Maryland Form 502 in February 2021 from the Maryland Comptroller of Maryland. Attach Maryland Form 502AC. Businesses that contribute to approved Neighborhood and Community Assistance Programs may be eligible for a tax credit of 50% of approved contributions with a maximum credit of $250,000. Then complete Form 502CR Parts A and H and attach to Form 502 or 504. We will update this page with a new version of the form for 2022 as soon as it is made available by the Maryland government. Baltimore City Residents: Leave the Maryland County box blank. . Click the F, Fi, I, and B icons to download any Maryland Form, Fillable Form, Instructions, or Booklet listed in the table below. Enter the smaller amount on this line. Line 39 of Form 502. The length of time you have for claiming a refund is limited. Enter the prorated amount on line 17 of Form 502 and check the Standard Deduction Method box. If greater than $15,000, enter $15,000, 2. To speed up the processing of your tax refund, consider filing electronically. The amount deducted for federal income tax purposes for expenses attributable to operating a family day care home or a child care center in Maryland without having the registration or license required by the Family Law Article. Benefits Claim Form: Claim Benefits from your Account for your Beneficiary’s attendance at a degree-granting institution. You do not get an exemption for yourself. Forms and information Declaration of estimated tax forms and any additional information may be obtained online at www.marylandtaxes.gov or from the Comptroller of Maryland, Revenue Administration Division, 110 Carroll Street, Annapolis, Maryland 21411-0001 (410-260-7980 from Central Maryland or 1-800-MD-TAXES from elsewhere) or from any Net subtraction modification to Maryland taxable income when the federal special 5-year carryback period was used for a net operating loss under federal law compared to Maryland taxable income without regard to federal provisions. p. BIO-HEATING OIL TAX CREDIT. If less than zero (0), enter zero (0). You must report part of the lump sum distribution as an addition to income if you file federal Form 4972. If these are not attached, no credit will be allowed. Other certain subtractions for which you may qualify will be reported on Form 502SU. See Form 500DM and Administrative Release 38. If any due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day. Go to our web site If you are a part-year resident, see Instruction 26. Net addition modification from multiple decoupling provisions. CHESAPEAKE BAY AND ENDANGERED SPECIES FUND. For alternative methods of payment, such as a credit card, visit our Web site at . If multiple subtractions apply, be sure to identify all of them on Form 502SU and attach it to your Form 502. The Maryland income tax rate for tax year 2020 is progressive from a low of 2% to a high of 5.75%. If no entry is needed for a specific line, leave blank. . Put the total on line 23. and select iFile. . Check the appropriate box to identify the type of account that will be used (checking or savings). Add up all of your federal gross income to determine your total federal income. Please attach a copy of your federal return and all relevant schedules that report the sale of the property. . If your state of residence or your period of Maryland residence was not the same as that of your spouse and you filed a joint return, follow Instruction 26 (c) through (p). If you both file and pay electronically, your return is due April 15th. See Instruction 26(k). 8. 4. f. . . Complete the SUBTRACTIONS FROM INCOME area using Instruction 13. Complete and attach Form 502AE. Your pension exclusion is the smaller of your net taxable pension (line 1) or the tentative exclusion (line 4). Include on line 12 any income received during the part of the year when you were not a resident of Maryland. Maryland Pension Exclusion. FEDERALLY TAXED SOCIAL SECURITY AND RAILROAD RETIREMENT BENEFITS. e. LONG-TERM CARE INSURANCE CREDIT. If the return is filed by the personal representative, write the words "Estate of" before the decedent's first name and the date of death after the last name. Private Delivery Services . However, if he began to receive his pension on February 1, Pat would prorate his pension by 10/11. "Attributable exclusively" means that the individual is solely responsible for the payment of an expense claimed as an itemized deduction, including compliance with a valid court order or separation agreement; or the individual jointly responsible for the payment of an expense claimed as an itemized deduction can demonstrate payment of the full amount of the deduction with funds that are not attributable in whole or in part, to the other jointly responsible individual. Taxable tax preference items from line 5 of Maryland Form 502TP. Form 502LU is ready to file in ProSeries. To compute the subtraction, complete the TWO- INCOME MARRIED COUPLE SUBTRACTION WORKSHEET (13D). NONRESIDENT INCOME. . If you or your spouse is 65 or over, use the MINIMUM FILING LEVEL TABLE 2. You must file Form 500CR electronically to claim a business income tax credit. OYSTER SHELL RECYCLING TAX CREDIT. There are severe penalties for failing to file a tax return, failing to pay any tax when due, filing a false or fraudulent return, or making a false certification. (Part-year residents or members of the military, see Instruction 26(o)), 1. If you are 65 or older or totally disabled (or your spouse is totally disabled), you may qualify for Maryland’s maximum pension exclusion of $27,100 under the conditions described in Instruction 13 of the Maryland resident tax booklet. 1. CHILD CARE EXPENSES. Multiply the amount from line c of the LOCAL POVERTY LEVEL CREDIT WORKSHEET (19C) in Instruction 19 by the Maryland income factor and enter this amount as the credit on line 31 of Form 502. Your permanent home is outside of Maryland, but you maintained a place of abode (a place to live) in Maryland for more than six months of the tax year. Local poverty level credit. If special circumstances apply, you may not owe interest for underpayment of estimated tax. The name and title of any person, other than the surviving spouse, filing the return should be clearly noted on the form. Contact the Comptroller of Maryland service center by phone or mail if you are having trouble using the service or need to discuss the status of a prior year or amended Maryland income tax return. If you are a qualified "Health Enterprise Zone (HEZ) Practitioner," you may be able to claim a credit against your state tax liability for income that you earned for practicing health care in an HEZ. . TOTAL EXEMPTION AMOUNT X MARYLAND INCOME FACTOR = PRORATED EXEMPTION AMOUNT. Limits on itemized deductions based on your income level has returned to both the federal and Maryland returns. LOCAL income tax (Multiply line 1 by line 2.) Next complete the ITEMIZED DEDUCTION WORKSHEET (14A), if you elect to itemize deductions on your Maryland return. m. Calculate the Balance Due (line 44 of Form 502 or line 20 of Form 503) or Overpayment (line 45 of Form 502 or line 21 of Form 503). Enter code 300 if you are a farmer or fisherman, 301 if your income was received unevenly throughout the year, or 302 if 90% of your taxable income is taxable by another state and the underpayment is not greater than the local tax. Line 7a of Form 503. Attach a copy of the certification. Income exempt from federal tax by federal law or treaty that is not exempt from Maryland tax. . If you owe interest, complete Form 502UP and write the amount of interest (line 18 of Form 502UP) in the appropriate box on line 48 of Form 502 or line 22 of Form 503. .$ 16,100, MINIMUM FILING LEVELS FOR TAXPAYERS 65 OR OVER, Single, age 65 or over. If you file Form 502 and have a balance due on line 44, add this amount to any amount on line 48. . should follow the last sequence number. Enter the interest from non-Maryland state or local bonds or other obligations (less related expenses). If you own and live in a home in Baltimore County you may qualify for this credit. To use the ITEMIZED DEDUCTION METHOD, you must itemize your deductions on your federal return and complete federal Form 1040 Schedule A. Maryland has decoupled from the federal 2013 itemized deduction threshold limiting itemized deductions. If you checked filing status 6 on your Maryland return, you are not eligible for this credit. Subtract lines 46 and 48 from your overpayment (line 45). REFUNDABLE EARNED INCOME CREDIT WORKSHEET (21A). No refunds of less than $1.00 will be sent. The tax will be identified as Maryland tax withheld on Form MW506NRS. www.marylandtaxes.com. If you expect a refund from your original return, do not file an amended return until you have received your refund check. Amount of interest and dividend income (including capital gain distributions) of a dependent child which the parent has elected to include in the parent's federal gross income under Internal Revenue Code Section 1(g)(7). . Your signature(s) signifies that your return, including all attachments, is, to the best of your knowledge and belief, true, correct and complete, under penalties of perjury. See Instruction 14 for completing lines 17a and b of Form 502. If your child was born and died in this tax year and you do not have a SSN for the child, complete just the name and relationship of the dependent and enter code 322, in one of the code number boxes located to the right of the telephone number area on page 2 of the form; attach a copy of the child's death certificate to your return. . Individuals who make a nonbusiness contribution may also be eligible for this tax credit. n. Net addition modification to Maryland taxable income when claiming the federal depreciation allowances from which the State of Maryland has decoupled. Line 12. If only one of these subtractions applies to you, enter the amount and the code letter on line 13 of Form 502; then the use of Form 502SU may be optional. . . b. MARYLAND DISABILITY EMPLOYMENT TAX CREDIT. 3. See the table at the bottom of Form 500DM for the line numbers and code letters to use. See Instruction 1 if you are due a refund. You must file your Form 502 electronically to claim the following nonrefundable business tax credits from Form 500CR. The fact that a software package is available for retail purchase does not guarantee that it has been approved for use. Line 1. Complete and attach Form 500DM. The factor cannot exceed 1 (100%) and cannot be less than zero (0%). (See instructions for Part A of Form 502CR.). Enter the name of your county on the MARYLAND COUNTY line. Using Instruction 10, they found the exemption amount on their Maryland return (based upon $180,000 of income) was $2,400 ($800 for three exemptions). . you owe less than $500 tax on income that is not subject to Maryland withholding, OR, each current year payment, made quarterly as required, is equal to or more than one-fourth of 110% of last year's tax, that was developed OR. Generally, a claim for a refund or overpayment credit must be filed within three years from the date the original return was filed or within two years from the date the tax was paid, whichever is later. . . If you and your spouse file a joint federal return but are filing separate Maryland returns, see Instruction 8. . Also, any amounts deducted as contributions of Preservation and Conservation Easements for which a credit is claimed on Form 502CR must be added to line 17b. Enter the income level that corresponds to the exemption number. . 40% of capital gain portion of distribution from Form 1099R. NEW FOR 2020. If your total military pay exceeds $30,000, you do not qualify for the subtraction. DISCLOSURE FIRST YEAR LEASING COSTS TAX CREDIT FOR A QUALIFIED SMALL BUSINESS. Form 588 if you elect to have your refund direct deposited to more than one account. MILITARY PERSONNEL WHO ARE LEGAL RESIDENTS OF MARYLAND. l. For additional information, see Administrative Release 40. . . MARYLAND TAX WITHHELD. . Then, open Adobe Acrobat Reader on your desktop or laptop computer. Certain businesses that create new qualified positions in Maryland may be eligible for a tax credit based on the number of qualified positions created or wages paid for these positions. Revenue Administration Division 1. FIGURE YOUR MARYLAND TAXABLE NET INCOME. Income tax preparers who, for compensation, completed 100 or more original Maryland individual income tax returns (paper and electronic forms) for Tax Year 2012 are required to file all original individual income tax returns electronically for Tax Year 2013, except when a taxpayer specifically requests a preparer to file by paper or when a preparer has received a valid written waiver from the Comptroller. You must sign your return. $ 10,000 You can claim the same number of exemptions that were claimed on your federal return. STATE RETIREMENT PICKUP. Certain businesses located in Maryland that create new positions or establish or expand business facilities in the state may be entitled to an income tax credit if a property tax credit is granted by Baltimore City or any county or municipal corporation of Maryland. The the Maryland Department of Labor Federal ID # is: 52-2006962. e. On line 4 of the Maryland Form 502LU you put the remainder of the unemployment compensation, i.e. See Administrative Release 18 at The Tax-General Article of the Annotated Code of Maryland authorizes the Revenue Administration Division to request information on tax returns to administer the income tax laws of Maryland, including determination and collection of correct taxes. d. . If you are filing a joint return and both spouses received Social Security and/or Railroad Retirement benefits but only one spouse received a pension, enter only the Social Security and/or Railroad Retirement benefits of the spouse receiving the pension on the worksheet. Net addition modification to Maryland taxable income resulting from the federal deferral of income arising from business indebtedness discharged by reacquisition of a debt instrument. . . In lieu of multiplying by 10, you may simply move the decimal point one place to the right and enter on line 4. CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES. If not correct and legible, it will affect the processing of your return. Use the following special instructions. Married couples who filed joint federal returns but were domiciled in different states on the last day of the tax year. Inclusive language: Use blue or black ink. Payment received as a result of a foreclosure settlement negotiated by the Maryland Attorney General. First complete your 2013 federal income tax return. u. If you have income subject to tax in both Maryland and another state, you may be eligible for a tax credit. TELEPHONE NUMBERS, CODE NUMBER, SIGNATURES AND ATTACHMENTS. Maryland will abate the tax liability for an individual who is a member of the U.S. Armed Forces at death, and dies while in active service in a combat zone or at any place from wounds, disease, or injury incurred while in active service in a combat zone. Maryland's Withholding Requirements for Sales or Transfers of Real Property and Associated Personal Property by Nonresidents: Instructions for nonresidents who are required to file forms MW506NRS, MW506AE, MW506R and MW508NRS to determine and collect income tax withholding due on the sale of property located in Maryland and owned by nonresidents. This is the amount of your refund. Attach your completed Form 502UP if you have entered code 301. The form you receive will be a three-part form. Enter the name of your county on the MARYLAND COUNTY line. . . the amount included FAGI, i.e. Place code number 915 in one of the boxes marked "code numbers" to the right of the telephone number area, if you are filing a return for a taxpayer who was killed in action meeting the above criteria. Net additions to income from a trust as reported by the fiduciary. When both you and your spouse qualify for this military subtraction, complete separate computations for each spouse. z. Line 4: SUBTRACT amount on line 3 from amount reported on line 2. Businesses may claim a credit for certain qualified research and development expenses. Amount of pickup contribution shown on Form 1099R from the state retirement or pension systems included in federal adjusted gross income. Write the result on line 17 of Form 502 or line 2 of Form 503. Attach a copy of federal Form 1310. Enter the result on line 34 of Form 502 or line 12 of Form 503. Note: We last updated the Maryland Amended Tax Form and Instructions in February 2020, so this is the latest version of Form 502X, fully updated for tax year 2019. Enter the total of your income tax credits as listed below. C. MULTIPLY line A by line B. Military taxpayers should refer to Instruction 29. If you are not certain about which method to use, figure your tax both ways to determine which method is best for you. Complete the filing status area using the same filing status that you used on your federal return. Please see Code l. xa. Complete and attach Form 502CR with Form 502. a. . If the IRS makes any changes to your federal return, you must notify the State of Maryland. Seniors age 65 and older have the option of filing federal Form 1040-SR this year. Do not include any additions related to periods of nonresidence. Write "Baltimore City" in the CITY, TOWN or TAXING AREA box. If you file Form 502 and have an overpayment on line 45, the Revenue Administration Division will refund any amount of $1.00 or more. Instead, use the tax tables if your income is under $100,000; otherwise, use the appropriate row in the MARYLAND TAX COMPUTATION WORKSHEET SCHEDULES (17A) at the end of the tax tables to figure your tax. Write the type of tax and year of tax being paid on your check. www.marylandtaxes.com You carry over the Federal Adjusted Gross Income (FAGI) to line 1 of the Maryland Form 502. This is your subtraction from income. Preparation of your Maryland income tax forms begins with the completion of your federal tax forms. Changes made as part of an amended return are subject to audit for up to three years from the date the amended return is filed. Multiply the amount from line 5 of the STATE POVERTY LEVEL CREDIT WORKSHEET (18B) in Instruction 18 by the Maryland income factor and enter this amount as the credit on line 24 of Form 502. Expenses incurred for reforestation or timber stand improvement of commercial forest land. Use Form 502X to file an amended return and include a copy of your federal return. The items of tax preference are defined in IRC Section 57. Complete the county, city, town or taxing area information using Instruction 6. Rollover Form: Use this form to request a rollover from another 529 Savings Plan. Gain resulting from a payment from the Maryland Department of Transportation as a result of the acquisition of a portion of the property on which your principal residence is located. . For more information on filing a return, see Publication 3 Armed Forces Tax Guide available at www.irs.gov. . State calculations are rounded to the nearest penny. If your amended return shows a larger refund, the Revenue Administration Division will issue an additional refund check. For more detailed information visit www.irs.gov. Penalty up to 25% may be assessed by the Revenue Administration Division for failing to pay any tax, or failing to file a tax return, when due. Do not include Social Security or railroad retirement benefits in your total federal income. To get a refund of Maryland income taxes withheld, you must file a Maryland return. To track the status of your Maryland income tax refund for 2020 you will need the following information: The requested information must match what was submitted on your 2020 Maryland Form 502. Part-year residents: losses or adjustments to federal income that were realized or paid when you were a nonresident of Maryland. 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