TaxYear 2013 Resident_Booklet MD 512 FE Resident Booklet

User Manual: MD 512 FE

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In 1989, the Maryland Blue Crab (Callinectes sapidus Rathbun) was designated the State Crustacean. Its
scientic name honors Mary Jane Rathbun (1860-1943), the scientist who described the species in 1896.
The blue crab’s scientic name translates as “beautiful swimmer that is savory.
MARYLAND
Peter Franchot, Comptroller
2013 STATE & LOCAL TAX FORMS & INSTRUCTIONS
For ling personal state and local income taxes for full- or part-year Maryland residents
A Message from
Comptroller Peter Franchot
Dear Maryland Taxpayers:
Ove r the las t s even year s, it has been my privilege to s er ve as Mar ylan ds Comptr oller. Ive trie d
to honor the legacy of my legendary predecessors Louis Goldstein, William Donald Schaefer
and Millard Tawes and also forge my own path by promoting scal responsibility, fostering a
fair and predictable regulatory environment and providing superior taxpayer service.
The agency’s dedication to customer service remains my top priority. I recently announced
my renewed commitment to this endeavor with the introduction of my “Three R’s of Taxpayer
Service” – a guide post for the way we do business in the Comptroller’s Ofce.
My employees are committed to providing Respect, Responsiveness and Results to every
taxpayer we serve, each and every day. Whether it’s a phone operator, front line staff at
one of the agency’s 12 branch ofces or a member of my senior staff, I’ve asked each of the
hardworking members of our team to redouble our commitment to providing outstanding
service to the citizens of Maryland.
One of the ways we can serve Marylanders most effectively in these tough times is to give
taxpayers back their money as quickly as possible. You can “help us, help you” by ling your
individual state tax returns electronically this year. It is the fastest, easiest and most secure
way to le taxes, and it saves the state millions in administrative costs. Most importantly, it
generally allows you to receive your refund within three business days if you choose to direct
deposit. Electronic ling is one of the many commonsense, cost-saving approaches we have
employed at the agency to achieve better results for taxpayers at a lower cost.
The Comptroller’s website offers easy, step-by-step assistance in completing your state income
tax return for FREE through the agency’s iFile program. For those who prefer in-person tax
assistance, we continue to offer free, state tax assistance at all of the agency’s 12 taxpayer
service ofces.
I’m proud of the enduring tradition of excellence by our 1,100 agency employees who work
hard each day to ensure you have the service you deserve as taxpayers.
As your Comptroller, I will continue to be an independent voice and scal watchdog, safeguarding
your hard-earned tax dollars and promoting the long-term scal health of the State of Maryland.
Sincerely,
Peter Franchot
i
TABLE OF CONTENTS
Filing Information ...........................ii
INSTRUCTION .....................PAGE
1. Do I have to le? .........................1
2. Use of federal return .......................2
3. Form 502 or 503 .........................2
4. Name and Address ........................2
5. Social Security Number(s) ...................2
6. County, city, town information ................2
7. Filing status .............................2
8. Special instructions for married ling separately. ...2
9. Part-year residents ........................4
10. Exemptions .............................4
11. Income ................................4
12. Additions to income .......................4
13. Subtractions from income ................. 5-8
14. Itemized Deductions .......................8
15. Figure your Maryland Adjusted Gross Income .....8
16. Figure your Maryland taxable net income ........8
17. Figure your Maryland tax. . . . . . . . . . . . . . . . . . . 10
18. Earned income credit, poverty level credit and
credits for individuals and business tax credits ..10-12
19. Local income tax and local credits ............12
20. Total Maryland tax, local tax and contributions ...12
21. Taxes paid and refundable credits. ............13
22. Overpayment or balance due ................13
23. Telephone numbers, code number, signatures and
attachments. ...........................14
24. Electronic and PC ling, mailing and payment
instructions, deadlines and extension. ..........14
25. Fiscal year. ............................15
26. Special instructions for part-year residents. ......15
27. Filing return of deceased taxpayer ............16
28. Amended returns ........................16
29. Special instructions for military taxpayers .......17
Tax Tables .........................18-24
Other information included in this booklet:
Privacy act information
State Department of Assessments and Taxation
Information
NEW FOR 2013
Inclusive language: We have modied our instructions to use
more inclusive language as a result of Maryland’s recognition of
same sex marriage.
Reporting your Federal earned income: If you are claiming a
federal Earned Income Credit (EIC), enter the earned income you
used to calculate your federal EIC on line 1b. on Form 502. Earned
income includes wages, salaries, tips, professional fees and other
compensation received for personal services you performed. It
also includes any amount received as a scholarship that you
included in your federal adjusted gross income.
Limits on your itemized deductions: Limits on itemized
deductions based on your income level has returned to both the
federal and Maryland returns. In addition, Maryland has decoupled
from the federal 2013 itemized deduction threshold limiting
itemized deductions. See Instruction 14 for more information.
(Use calculator at www.marylandtaxes.com.)
New subtraction modications: There are two new subtraction
modications available. See Instructions 13 for more information.
New business tax credits: There are four new business tax
credits available. See Instructions to Form 500CR available at
www.marylandtaxes.com.
New income tax credit of Form 502CR: Health Enterprise Zone
Practitioner Tax Credit. If you are a qualied “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 a HEZ.
Electronic Format: The paper version of Maryland Form 500CR
Business Income Tax Credits no longer is available. You must le
your Maryland return electronically to claim the business income
credits available from Form 500CR. Form 500CR Instructions are
available at www.marylandtaxes.com.
Attachment Sequence Numbers: Most of our major paper
resident tax returns have Attachment Sequence Numbers to aid in
the placement order of tax returns to speed tax return processing.
GETTING HELP
Ta x Fo rms, Tax Tip s , Br oc hures and In s t r uc t i ons: These
are available online at www.marylandtaxes.com and branch
ofces of the Comptroller (see back cover). For forms only,
call 410-260-7951.
Telephone: Februar y 3 - April 15, 2014, 8:00 a.m. until 7:00
p.m., Monday through Friday. From Central Maryland, call
410-260-7980. From other locations, call 1-800-MDTAXES
(1-800-638-2937).
Email: Contact taxhelp@comp.state.md.us.
Extensions: To telele an extension, call 410-260-7829; to
le an extension online, visit www.marylandtaxes.com.
RECEIVING YOUR REFUND
Direct Deposit: To have your refund deposited to your bank
or other nancial account, enter your account and routing
numbers at the bottom of your return.
Deposit of Income Ta x Refun d t o m o r e t han on e a c c ount:
Form 588 allows income tax refunds to be deposited to more
than one account. See Instruction 22 for more information.
Check with your nancial institution to make sure your direct
deposit will be accepted and to get the correct routing and
account numbers. The State of Maryland is not responsible
for a lost refund if you enter the wrong account information.
Verify Your Tax Preparer
If you use a paid tax preparer in Maryland, other than a CPA, Enrolled Agent or attorney, make sure the preparer is registered with the Maryland Board of Individual
Tax Preparers.
You can check the REGISTRATION SEARCH on the Department of Labor, Licensing and Regulation Web site: http://www.dllr.state.md.us/license/taxprep
You can check the LICENSE SEARCH for CPAs on the Department of Labor, Licensing and Regulation Web site: http://www.dllr.state.md.us/license/cpa/
You can check the ACTIVE STATUS for attorneys on the Maryland Courts Web site: http://www.courts.state.md.us/cpf/attylist.html
ii
Check: Unless otherwise requested, we will mail you a paper
check.
Refund Information: To request information about your
refund, see OnLine Services at www.marylandtaxes.com,
or call 410-260-7701 from central Maryland. From other
locations, call 1-800-218-8160.
FILING ELECTRONICALLY
Go Green! eFile saves paper. In addition, you will receive
your refund faster; receive an acknowledgement that your
return has been received; and, if you owe, you can extend
your payment date until April 30th if you both eFile and make
your payment electronically.
Security: Yo ur infor matio n is tran s mit te d se cur ely when yo u
choose to le e le c tr onic ally. It is p r otec ted by s eve r al s e c urit y
measures, such as multiple rewalls, state of the art threat
detection and encrypted transmissions.
iFile: Fr e e Internet ling is available for Mar ylan d inc ome t a x
returns with no limitation. Visit www.marylandtaxes.com
and click iFile for eligibility.
PC Retail Software: Check the software requirements to
de t e r mine eFil e e ligi bilit y be f o r e you pur c hase c omme r cial of f-
the-shelf software. Use software or link directly to a provider
site to prepare and le your return electronically.
eFile: Ask yo ur pr ofe s s ional tax prepar er to eFil e your retur n.
You may use any tax professional who participates in the
Maryland Electronic Filing Program.
IRS Free File: Free Internet ling is available for federal
income tax returns; some income limitations may apply.
Visit www.irs.gov for eligibility. Fees for state tax returns
also may apply; however, you may always return to www.
marylandtaxes.com to use the free iFile Internet ling for
Maryland income tax returns after using the IRS Free File for
your federal return.
AVOID COMMON ERRORS
Social Security Number(s): Enter each Social Security
Number in the space provided at the top of your tax return.
Also enter the Social Security Number for children and other
de p e n dents. T he So c ial Se c urit y Nu mber will b e validated by
the IRS before the return has completed processing.
L o c a l Ta x : Use the correct local income tax rate, based on
your county of residence on the last day of the tax year for
where you lived on December 31, 2013, or the last day of
the year for scal lers. See Instruction 19.
Original Return: Please send only your original completed
Maryland tax return. Photocopies can delay processing of
your refund. If you led electronically, do not send a paper
return.
Federal Forms: Do not send federal forms, schedules or
copies of federal forms or schedules unless requested.
Photocopies: Remem b e r t o keep c opies of all fe d e r al f or m s
an d s c he dul e s and any oth e r d o c ument s that may be required
later to substantiate your Maryland return.
Ink: Use only blue or black ink to complete your return. Do
not use pencil.
Attachments: Ple a s e m ake sure to send all wag e s t atement s
such as W-2s, 1099s and K-1s. Ensure that the state tax
withheld is readable on all forms. Ensure that the state
in c o me m o dicati o ns and s t ate t ax credit s ar e clear l y shown
on all K-1s.
Colored Paper: D o not pr int the Mar yland r e t urn o n colo r e d
paper.
Bar Codes: Do not staple or destroy the bar code.
PAYING YOUR TAXES
Direct Debit: If you le electronically and have a balance
due, you can have your income tax payment deducted
dir e c tl y from your b ank acc ount . Thi s free s er vi c e allows you
to choose your payment date, anytime until April 30, 2014.
Visit www.marylandtaxes.com for details.
Bill Pay Electronic Payments: If your paper or electronic
tax return has a balance due, you may pay electronically at
www.marylandtaxes.com by sele ctin g B illPay. The amo unt
you designate will be debited from your bank or nancial
institution on the date that you choose.
Checks and Money Orders: Make check or money order
payable to Comptroller of Maryland. We recommend you
in c lude your Social Secur it y Number on your check o r mo ney
or der.
ALTERNATIVE PAYMENT METHODS
For alternative methods of payment, such as a credit card, visit
our Web site at www.marylandtaxes.com.
GET YOUR 1099-G ELECTRONICALLY
Go to our web site www.marylandtaxes.com to sign up to
receive your 1099-G electronically. Once registered, you can
download and print your 1099-G from our secure Web site
www.marylandtaxes.com
PRIVACY ACT INFORMATION
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. Code Section 10-804 provides that you must include
your Social Security Number on the return you le. This is so
we know who you are and can process your return and papers.
If you fail to provide all or part of the requested information,
exemptions, exclusions, credits, deductions or adjustments
may be disallowed and you may owe more tax. In addition, the
law provides penalties for failing to supply information required
by law or regulations.
You may look at any records held by the Revenue Administration
Division which contain personal information about you. You may
inspect such records, and you have certain rights to amend or
correct them.
As authorized by law, information furnished to the Revenue
Administration Division may be given to the United States
Internal Revenue Service, an authorized ofcial of any state
that exchanges tax information with Maryland and to an
ofcer of this State having a right to the information in that
ofcer’s ofcial capacity. The information may be obtained in
accordance with a proper legislative or judicial order.
ASSEMBLING YOUR RETURN
WHAT YOU SHOULD SEND:
Your original, completed Maryland income tax return (Form 502
iii
SERVICES FOR INDIVIDUALS
Bill Pay - Personal Taxes . . . . . . . . . . . . . . .https://interactive.marylandtaxes.com/Individuals/Payment/
iFile - Personal Taxes . . . . . . . . . . . . . . . . . .https://ile.marylandtaxes.com/
iFile - Estimated Taxes . . . . . . . . . . . . . . . . .https://interactive.marylandtaxes.com/Individuals/iFile_ChooseForm/default.asp#list
Estimated Tax Calculator for Tax Year 2013 . .https://interactive.marylandtaxes.com/webapps/percentage/502for2013.asp
Estimated Nonresident Tax Calculator . . . . . .http://interactive.marylandtaxes.com/Extranet/Calculators/estimatednr/default.aspx
Extension Request - Personal Tax . . . . . . . . .https://interactive.marylandtaxes.com/individuals/extension/default.asp
Individual Payment Agreement Request . . . . .https://interactive.marylandtaxes.com/extranet/compliance/payagr/
Refund Status . . . . . . . . . . . . . . . . . . . . . . .https://interactive.marylandtaxes.com/INDIV/refundstatus/home.aspx
Refund Questions . . . . . . . . . . . . . . . . . . . .http://taxes.marylandtaxes.com/Individual_Taxes/Individual_Tax_Types/Income_Tax/
Refund_Information/Questions_About_My_Refund.shtml
Unclaimed Property Search . . . . . . . . . . . . .https://interactive.marylandtaxes.com/individuals/unclaim/default.aspx
Income Tax Interest Calculator . . . . . . . . . . .http://taxes.marylandtaxes.com/Resource_Library/Online_Services/Interest_
Calculator/IntCalc.shtml
Appeals of Personal Income Tax Assessments and Refund Denials
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .https://interactive.marylandtaxes.com/extranet/compliance/harequest/default.aspx
Sign-up for future electronic 1099-G .......https://interactive.marylandtaxes.com/Individuals/paperless/1099g/default.asp
or 503) and Dependent Form 502B as applicable.
Form 588 if you elect to have your refund direct deposited to
more than one account.
W-2(s)/1099(s) showing Maryland tax withheld.
K-1s showing Maryland tax withheld and or Maryland tax credit.
If you have a balance due, and if not filing and paying
electronically, a check or money order payable to Comptroller
of Maryland with your Social Security Number on the check
or money order.
Maryland schedules or other documents that may be required
according to the instructions if you claim certain credits or
subtractions. These may include the following: 500DM, 502CR,
502TP, 502UP, 502V, 502S and 502SU.
A copy of the tax return you led in the other state if you’re
claiming a tax credit on Form 502CR, Part A.
DO NOT SEND:
Photocopies of your Maryland return.
Federal forms or schedules unless requested.
Any forms or statements not requested.
Returns by fax.
Returns on colored paper.
Returns completed in pencil.
Returns with the bar code stapled or destroyed.
CollegeSavingsMD.org
How to Maximize Your
M
aryland 529 Tax Benefits
Did you know that the College Savings Plans of Maryland are the only 529
plans that oer a State income deduction to Maryland taxpayers? Heres an
example of how your family could maximize their State income deduction.
Maryland College Investment Plan (MCIP)
Maryland Prepaid College Trust (MPCT)
$10,000 combined
annual income deduction
Visit CollegeSavingsMD.org for complete details.
Please carefully read the Enrollment Kit, available online, which describes the investment objectives, risks, expenses, and other important information that you should consider before you invest in the College
Savings Plans of Maryland. Also, if you or your beneficiary live outside of Maryland, you should consider before investing whether your state or your beneficiary’s state offers state tax or other benefits for
investing in its 529 plan. As with all State and Federal tax matters, please consult with your tax advisor.
Deduct up to $2,500 for each account/beneficiary you hold
in each plan. Deductions apply to Maryland taxable income
for your contributions in that tax year.
Each family member who opens an account
is eligible for income deductions
Contribute to both plans to increase
your income deductions
ANNUAL ACCOUNT HOLDER CONTRIBUTIONS
MCIP $2,500 $2,500 $2,500
MPCT $2,500 $2,500 $2,500
$5,000 $5,000 $5,000
PLANS
Account Holders can deduct contributions
regardless of their marital or tax filing
status (individual or joint).
AVAILABLE
PLANS:
1
RESIDENT INCOME TAX
RETURN INSTRUCTIONS
MARYLAND
FORMS
502
and
503
2013
DUE DATE
Your return is due by April 15, 2014. If you are a scal year taxpayer,
see Instruction 25. If any due date falls on a Saturday, Sunday or legal
holiday, the return must be led by the next business day.
To speed up the processing of your tax refund, consider ling
electronically. You must le within three years of the original due date
to receive any refund. Visit our Web site at www.marylandtaxes.
com.
COMPLETING THE RETURN
You must write legibly using blue or black ink when completing your
return.
DO NOT use pencil or red ink. Submit the original return, not a
photocopy. If no entry is needed for a specic line, leave blank. Do not
enter words such as “none” or “zero” and do not draw a line to indicate
no entry. Failure to follow these instructions may delay the processing
of your return.
You may round off all cents to the nearest whole dollar. Fifty cents
and above should be rounded to the next dollar. State calculations are
rounded to the nearest penny.
ELECTRONIC FILING INSTRUCTIONS
The instructions in this booklet are designed specically for lers of
paper returns.
If you are ling electronically and these instructions differ from the
instructions for the electronic method being used, you should comply
with the instructions appropriate for that method.
Free internet ling is available for Maryland income tax returns. Visit
www.marylandtaxes.com and select iFile.
Software vendors should refer to the e-le handbook for their
instructions.
SUBSTITUTE FORMS
You may le your Maryland income tax return on a computer-
prepared or computer-generated substitute form provided the form
is approved in advance by the Revenue Administration Division. The
fact that a software package is available for retail purchase does not
guarantee that it has been approved for use.
For additional information, see Administrative Release 26, Procedures
for Computer-Printed Substitute Forms, on our web site at www.
marylandtaxes.com.
PENALTIES
There are severe penalties for failing to le a tax return, failing to pay
any tax when due, ling a false or fraudulent return, or making a false
certication. The penalties include criminal nes, imprisonment and a
penalty on your taxes. In addition, interest is charged on amounts not
paid.
To collect unpaid taxes, the Comptroller is directed to enter liens
against the salary, wages or property of delinquent taxpayers.
TABLE 1
MINIMUM FILING LEVELS FOR TAXPAYERS UNDER 65
Single person (including dependent taxpayers) ..... $ 10,000
Joint Return ............................. $ 20,000
Married persons ling separately ............... $ 3,900
Head of Household ........................ $ 12,850
Qualifying widow(er) ....................... $ 16,100
TABLE 2
MINIMUM FILING LEVELS FOR TAXPAYERS 65 OR OVER
Single, age 65 or over ...................... $ 11,500
Joint Return, one spouse, age 65 or over ......... $ 21,200
Joint Return, both spouses, age 65 or over ....... $ 22,400
Married persons ling separately, age 65 or over ... $ 3,900
Head of Household, age 65 or over ............. $ 14,350
Qualifying widow(er), age 65 or over ............ $ 17,300
1
DO I HAVE TO FILE?
This booklet and forms are for residents of Maryland. In general, you
must le a Maryland return if you are or were a resident of Maryland
AND you are required to le a federal return. Information in this
section will allow you to determine if you must le a return and pay
taxes as a resident of Maryland. If you are not a resident but had
Maryland tax withheld or had income from sources in Maryland, you
must use Form 505 or 515, Nonresident Tax return.
WHO IS A RESIDENT?
You are a resident of Maryland if:
a. Your permanent home is or was in Maryland (the law refers to this
as your domicile).
OR
b. Your permanent home is outside of Mar yland, but you maintained
a place of abode (a place to live) in Maryland for more than
six months of the tax year. If this applies to you and you were
physically present in the state for 183 days or more, you must le
a full-year resident return.
PART-YEAR RESIDENTS
If you began or ended residence in Maryland during the tax year, you
must le a Maryland resident income tax return. See Instruction 26.
MILITARY AND OTHERS WORKING OUTSIDE OF MARYLAND
Military and other individuals whose domicile is in Maryland, but who
are stationed or work outside of Maryland, including overseas, retain
their Mar yland l egal re s id enc e. Mar yland re sid ence is not lo st bec aus e
of duty assignments outside of the State; see Administrative Release
37. Military personnel and their spouses should see Instruction 29.
TO DETERMINE IF YOU ARE REQUIRED TO FILE A MARYLAND
RETURN
a. Add up all of your federal gross income to determine your total
federal income. Gross income is dened in the Internal Revenue
Code and, in general, consists of all income regardless of source.
It includes wages and other compensation for services, gross
income derived from business, gains (not losses) derived from
dealings in proper ty, interest, rents, royalties, dividends, alimony,
annuities, pensions, income from partnerships or duciaries, etc.
If modications or deduc tions reduce your gross income below t he
minimum ling level, you are still required to le. IRS Publication
525 provides additional information on taxable and nontaxable
income.
b. Do not include Social Security or railroad retirement benets in
your total federal income.
c. Add to your total federal income any Maryland additions to income.
Do not include any additions related to periods of nonresidence.
See Instruction 12. This is your Maryland gross income.
d. If you are a dependent taxpayer, add to your total federal income
any Maryland additions and subtract any Maryland subtractions.
See Instructions 12 and 13. This is your Maryland gross
income.
e. You must le a Maryland return if your Maryland gross income
MINIMUM FILING LEVELS TABLES
2
equals or exceeds the income levels in the MINIMUM FILING
LEVEL TABLE 1.
f. If you or your spouse is 65 or over, use the MINIMUM FILING
LEVEL TABLE 2.
IF YOU ARE NOT REQUIRED TO FILE A MARYLAND RETURN
BUT HAD MARYLAND TAXES WITHHELD
To get a refund of Maryland income taxes withheld, you must le a
Maryland return.
Taxpayers who are ling for refund only should complete all of the
information at the top of Form 502 or Form 503 and complete the
following lines:
Form 502 Form 503
1-16 1, 7a*, 10a*
23*, 30* 13-19
35-43 21
45, 47
*Enter a zero unless you claim an earned income credit on your
federal return.
Sign the form and attach withholding statements (all W-2 and
1099 forms) showing Maryland and local tax withheld equal to the
withholding you are claiming. Your form is then complete.
2
USE OF FEDERAL RETURN.
First complete your 2013 federal income tax return.
You will need information from your federal return to complete your
Maryland return. Complete your federal return before you continue
beyond this point. Maryland law requires that your income and
deductions be entered on your Maryland return exactly as they were
reported on your federal return. If you use federal Form 1040NR,
visit our Web page at http://www.marylandtaxes.com/QR/19.
asp for further information. All items reported on your Maryland
return are subject to verication, audit and revision by the Maryland
State Comptroller’s Ofce.
3
FORM 502 OR 503?
Decide whether you will use Form 502 (long form) or Form
503 (short form). You must use Form 502 if your federal
adjusted gross income is $100,000 or more.
FORM 502
All taxpayers may use Form 502. You must use this form if you itemize
deductions, if you have any Maryland additions or subtractions, if
you have made estimated payments or if you are claiming business
or personal income tax credits. You must also use this form if you
have moved into or out of Maryland during the tax year.
Note: You must le Form 502 electronically if you are claiming
business income tax credits on Form 500CR.
FORM 503
If you use the standard deduction, have no additions or subtractions,
and claim only withholding or the refundable or other earned income
credits, you may use the short Form 503. Answer the questions
on the back of Form 503 to see if you qualify to use it. Do not use
Form 503 if you are claiming more than two dependents. NOTE:
If you are eligible for the pension exclusion, you must use
Form 502.
4
NAME AND ADDRESS.
Print using blue or black ink.
Enter your name exactly as entered on your federal tax return. If
you changed your name because of marriage, divorce, etc., be sure
to report the change to the Social Security Administration before
ling your return. This will prevent delays in the processing of your
return.
Enter your current address using the spaces provided. If using a
foreign address enter the city or town and state or province in the
“City or Town” box. Enter the name of the country in the Statebox.
Enter the postal code in the “ZIP Code” box.
5
SOCIAL SECURITY NUMBER(S) (SSN).
It is important that you enter each Social Security Number in
the space provided. You must enter each SSN legibly because
we validate each number. If not correct and legible, it will
affect the processing of your return.
The Social Security Number(s) (SSN) must be a valid number
issued by the Social Security Administration of the United States
Government. If you or your spouse or dependent(s) do not have a
SSN and you are not eligible to get a SSN, you must apply for an
Individual Tax Identication Number (ITIN) with the IRS and
you should wait until you have received it before you le; and
enter it wherever your SSN is requested on the return.
A missing or incorrect SSN or ITIN could result in the disallowance
of any credits or exemptions you may be entitled to and result in a
balance due.
A valid SSN or ITIN is required for any claim or exemption for a
dependent. If you have a dependent who was placed with you for
legal adoption and you do not know his or her SSN, you must get an
Adoption Taxpayer Identication Number (ATIN) for the dependent
from the IRS.
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 certicate to your return.
6
COUNTY, CITY, TOWN INFORMATION.
Fill in the boxes for MARYLAND COUNTY and CITY, TOWN or
TAXING AREA based on your residence on the last day of the
tax period:
BALTIMORE CITY RESIDENTS:
Leave the MARYLAND COUNTY box blank.
Write “Baltimore City” in the CITY, TOWN OR TAXING AREA box.
RESIDENTS OF MARYLAND COUNTIES (NOT BALTIMORE CITY):
1. Write the name of your county in the MARYLAND COUNTY box.
2. Find your county in the list below.
3. If you lived within the incorporated tax boundaries of one of the
areas listed under your county, write the name in the CITY, TOWN
OR TAXING AREA box.
4. If you did not live in one of the areas listed for your county, leave
the CITY, TOWN OR TAXING AREA box blank.
7
FILING STATUS.
Use the FILING STATUS chart to determine your ling status.
Check the correct FILING STATUS box on the return.
8
SPECIAL INSTRUCTIONS FOR MARRIED
PERSONS FILING SEPARATELY.
If you and your spouse le a joint federal return but are ling
separate Maryland returns according to Instruction 7, follow
the instructions below.
If you and your spouse le a joint federal return but are ling
separate Maryland returns according to Instruction 7, you should
report the income you would have reported had you led a separate
federal return. The income from jointly held securities, property,
etc., must be divided evenly between spouses.
If you itemized your deductions on the joint federal return, one
spouse may use the standard deduction and the other spouse may
claim those deductions on the federal return that are “attributable
exclusivelyto that spouse, plus a prorated amount of the remaining
deductions. If it is not possible to determine these deductions, the
deduction must be allocated proportionately based on your share of
the income.
Attributable exclusively” means that the individual is solely
3
If you are: Check the box for: Additional Information
SINGLE PERSON
(Single on the last day of the
tax year.)
Any person who can be claimed as a
dependent on his or her parent’s (or any
other person’s) federal return
Dependent
taxpayer
Filing Status 6
Single Dependent taxpayers, regardless of whether income is earned or unearned,
are not required to file a Maryland income tax return unless the gross income
including Maryland additions and subtractions is $10,000 or more. See Instruction
1 if you are due a refund. You do not get an exemption for yourself. Put a zero in
Exemption Box A.
Any person who filed as a head of
household on his or her federal return
Head of household
Filing Status 4
A qualifying widow(er) with dependent child
who filed a federal return with this status
Qualifying widow(er) with
dependent child
Filing Status 5
All other single persons Single
Filing Status 1
If your spouse died during the year AND you filed a joint federal return with your
deceased spouse, you may still file a joint Maryland return.
MARRIED PERSONS
(Married on the last day of the tax year.)
Any person who can be claimed as a
dependent on his or her parent’s (or any
other person’s) federal return
Dependent taxpayer
Filing Status 6
You do not get an exemption for yourself. Put a zero in Exemption Box A. You and
your spouse must file separate returns.
Any person who filed as a head of
household on his or her federal return
Head of household
Filing Status 4
Married couples who filed separate federal
returns
Married filing separately
Filing Status 3
Each taxpayer must show his or her spouse’s Social Security number in the blank
next to the filing status box.
Married couples who filed joint federal
returns but had different tax periods
Joint return
Filing Status 2
or Married filing separately
Filing Status 3
If you are not certain which filing status to use, figure your tax both ways to
determine which status is best for you. See Instructions 8 and 26(g) through (p).
Married couples who filed joint federal
returns but were domiciled in different
counties, cities, towns or taxing areas on
the last day of the year
Joint return
Filing Status 2
or Married filing separately
Filing Status 3
If you are filing separately, see Instruction 8. If you are filing a joint return see
SPECIAL NOTE in Instruction 19.
Married couples who filed joint federal
returns but were domiciled in different
states on the last day of the year
If you are filing separately, see Instruction 8. If you are filing a joint return, you must
attach a pro forma Form 505 and 505NR. See Administrative Releases 1 & 3.
All other married couples who filed joint
federal returns
Joint return
Filing Status 2
FILING STATUS
LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND
ALLEGANY COUNTY
BARTON
BELAIR
BOWLING GREEN-
ROBERT’S PLACE
CRESAPTOWN
CUMBERLAND
ELLERSLIE
FROSTBURG
LAVALE
LONACONING
LUKE
MCCOOLE
MIDLAND
MT. SAVAGE
POTOMAC PARK
ADDITION
WESTERNPORT
ANNE ARUNDEL
COUNTY
ANNAPOLIS
HIGHLAND BEACH
BALTIMORE COUNTY
NO INCORPORATED
CITIES OR TOWNS
BALTIMORE CITY
CALVERT COUNTY
CHESAPEAKE BEACH
NORTH BEACH
CAROLINE COUNTY
DENTON
FEDERALSBURG
GOLDSBORO
GREENSBORO
HENDERSON
HILLSBORO
MARYDEL
PRESTON
RIDGELY
TEMPLEVILLE
CARROLL COUNTY
HAMPSTEAD
MANCHESTER
MT. AIRY
NEW WINDSOR
SYKESVILLE
TANEYTOWN
UNION BRIDGE
WESTMINSTER
CECIL COUNTY
CECILTON
CHARLESTOWN
CHESAPEAKE CITY
ELKTON
NORTH EAST
PERRYVILLE
PORT DEPOSIT
RISING SUN
CHARLES COUNTY
INDIAN HEAD
LA PLATA
PORT TOBACCO
DORCHESTER COUNTY
BROOKVIEW
CAMBRIDGE
CHURCH CREEK
EAST NEW MARKET
ELDORADO
GALESTOWN
HURLOCK
SECRETARY
VIENNA
FREDERICK COUNTY
BRUNSWICK
BURKITTSVILLE
EMMITSBURG
FREDERICK
MIDDLETOWN
MT. AIRY
MYERSVILLE
NEW MARKET
ROSEMONT
THURMONT
WALKERSVILLE
WOODSBORO
GARRETT COUNTY
ACCIDENT
DEER PARK
FRIENDSVILLE
GRANTSVILLE
KITZMILLER
LOCH LYNN HEIGHTS
MOUNTAIN LAKE PARK
OAKLAND
HARFORD COUNTY
ABERDEEN
BEL AIR
HAVRE DE GRACE
HOWARD COUNTY
NO INCORPORATED
CITIES OR TOWNS
KENT COUNTY
BETTERTON
CHESTERTOWN
GALENA
MILLINGTON
ROCK HALL
MONTGOMERY COUNTY
BARNESVILLE
BROOKEVILLE
CHEVY CHASE SEC. 3
TOWN OF CHEVY CHASE
(FORMERLY SEC. 4)
CHEVY CHASE SEC. 5
CHEVY CHASE VIEW
CHEVY CHASE VILLAGE
DRUMMOND
FRIENDSHIP HEIGHTS
GAITHERSBURG
GARRETT PARK
GLEN ECHO
KENSINGTON
LAYTONSVILLE
MARTIN’S ADDITION
NORTH CHEVY CHASE
OAKMONT
POOLESVILLE
ROCKVILLE
SOMERSET
TAKOMA PARK
WASHINGTON GROVE
PRINCE GEORGE’S
COUNTY
BERWYN HEIGHTS
BLADENSBURG
BOWIE
BRENTWOOD
CAPITOL HEIGHTS
CHEVERLY
COLLEGE PARK
COLMAR MANOR
COTTAGE CITY
DISTRICT HEIGHTS
EAGLE HARBOR
EDMONSTON
FAIRMOUNT HEIGHTS
FOREST HEIGHTS
GLENARDEN
GREENBELT
HYATTSVILLE
LANDOVER HILLS
LAUREL
MORNINGSIDE
MT. RAINIER
NEW CARROLLTON
NORTH BRENTWOOD
RIVERDALE PARK
SEAT PLEASANT
UNIVERSITY PARK
UPPER MARLBORO
QUEEN ANNE’S COUNTY
BARCLAY
CENTREVILLE
CHURCH HILL
MILLINGTON
QUEEN ANNE
QUEENSTOWN
SUDLERSVILLE
TEMPLEVILLE
ST. MARY’S COUNTY
LEONARDTOWN
SOMERSET COUNTY
CRISFIELD
PRINCESS ANNE
TALBOT COUNTY
EASTON
OXFORD
QUEEN ANNE
ST. MICHAELS
TRAPPE
WASHINGTON COUNTY
BOONSBORO
CLEARSPRING
FUNKSTOWN
HAGERSTOWN
HANCOCK
KEEDYSVILLE
SHARPSBURG
SMITHSBURG
WILLIAMSPORT
WICOMICO COUNTY
DELMAR
FRUITLAND
HEBRON
MARDELA SPRINGS
PITTSVILLE
SALISBURY
SHARPTOWN
WILLARDS
WORCESTER COUNTY
BERLIN
OCEAN CITY
POCOMOKE CITY
SNOW HILL
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.
If both spouses choose to itemize on their separate Maryland
returns, then each spouse must determine which deductions are
attributable exclusively to him or her and prorate the remaining
deductions using the Maryland Income Factor. See Instruction
26(k). If it is not possible to determine deductions in this manner,
they must be allocated proportionately based on their respective
shares of the income. The total amount of itemized deductions for
both spouses cannot exceed the itemized deductions on the federal
return.
If yo u c h o os e to u s e t h e st a n d a r d de d u c tion m e t h o d, u s e S TA N DAR D
DEDUCTION WORKSHEET (16A) in Instruction 16. Each spouse must
claim his or her own personal exemption. Each spouse may allocate
the dependent exemptions in any manner they choose. The total
number of exemptions claimed on the separate returns may not
exceed the total number of exemptions claimed on the federal return
except for the additional exemptions for being 65 or over or blind.
Complete the remainder of the form using the instructions for
each line. Each spouse should claim his or her own withholding and
other credits. Joint estimated tax paid may be divided between the
spouses in any manner provided the total claimed does not exceed
the total estimated tax paid.
4
EXEMPTION AMOUNT CHART
The personal exemption is $3,200. This exemption is reduced once the taxpayer’s federal adjusted gross income exceeds $100,000 ($150,000
if ling Joint, Head of Household, or Qualifying Widow(er) with Dependent Child). This reduction applies to the additional dependency
exemptions as well; however it does not apply to the taxpayer’s age or blindness exemption of $1,000. Use the chart to determine the
allowable exemption amount based upon the ling status. NOTE: For certain taxpayers with interest from U.S. obligations see Instruction 13,
line 13, code hh for applicable exemption adjustment.
If Your federal AGI is
Single or Married Filing
Separately
Each Exemption is
Joint, Head of Household
or Qualifying Widow(er)
Each Exemption is
Dependent Taxpayer (eligible
to be claimed on another
taxpayer’s return)
Each Exemption is
$100,000 or less $3,200 $3,200 $0
Over But not over
$100,000 $125,000 $1,600 $3,200 $0
$125,000 $150,000 $800 $3,200 $0
$150,000 $175,000 $0 $1,600 $0
$175,000 $200,000 $0 $800 $0
In excess of $200,000 $0 $0 $0
Total the exemption amount on the front of Form 502 or Form 503 to determine the total exemption allowance to subtract on line 19 of
Form 502 or on line 4 of Form 503.
9
PART-YEAR RESIDENTS.
If you began or ended legal residence in Maryland in 2013 go
to Instruction 26.
Military taxpayers. If you have non-Maryland military income,
see Administrative Release 1.
10 EXEMPTIONS.
Determine what exemptions you are entitled to and complete
the EXEMPTIONS area on Form 502 or Form 503. Form 502B
must be completed and attached to Form 502 if you are
claiming one or more dependents.
EXEMPTIONS ALLOWED
You are permitted the same number of exemptions which you are
permitted on your federal return; however, the exemption amount is
different on the Maryland return. Even if you are not required to le
a federal return, the federal rules for exemptions still apply to you.
Refer to the federal income tax instructions for further information.
In addition to the exemptions allowed on your federal return, you
and your spouse are permitted to claim exemptions for being age
65 or over or for blindness. These additional exemptions are in the
amount of $1,000 each. If any other dependent claimed is 65 or
over, you also receive an extra exemption of up to $3,200. Make
sure you check both boxes (6) and (7) of Form 503 or the Dependent
Form 502B for each of your dependents who are age 65 or over.
Enter the number of exemptions in the appropriate boxes based
upon your entries in parts A, B, and C of the exemption area of
the form. Enter the total number of exemptions in Part D. For
Form 502, the number of exemptions for Part C is from Total
Dependent Exemptions, Line 3 of Form 502B.
NOTE: Do not use Form 503 if you are claiming more than two
dependents. Form 502B must be completed and attached to Form
502 if you are claiming one or more dependents.
KIDS FIRST EXPRESS LANE ELIGIBILITY ACT
Check the appropriate yes or no box on Form 503 dependent area
or Form 502B if the dependent who is eligible to be claimed as an
exemption is under age 19 before the end of the taxable year.
For each “dependent under age 19”, please also check ( ) either
the yes or no box to indicate whether or not that child currently has
health insurance.
Answering these questions will tell us whether to send you
information about affordable health care coverage for your children.
Check ( ) yes to authorize us to share your tax information with
the Medical Assistance Program. It will be used ONLY to identify and
help enroll your eligible children in affordable health care programs.
PART-YEAR RESIDENTS AND MILITARY
You must prorate your exemptions based on the percentage of
your income subject to Maryland tax. See Instruction 26 and
Administrative Release 1.
11 INCOME.
Line 1. Copy the gure for federal adjusted gross income
from your federal return onto line 1 of Form 502 or Form 503.
Line 1a. Copy the total of your wages, salaries and tips from
your federal return onto line 1a of Form 502 or Form 503. Use
the chart below to nd the gures that you need. If you and your
spouse le a joint federal return but are ling separate Maryland
returns, see Instruction 8.
To Maryland
Form From Federal Form
502 & 503 1040 1040A 1040EZ
line 1
line 1a
line 1b
line 37
line 7
See below.
line 21
line 7
line 7
line 4
line 1
line 1
Line 1b. If you are claiming a federal earned income credit
(EIC), or poverty level credit (PLC), enter the earned income
you used to calculate your credit. Earned income includes
wages, salaries, tips, professional fees and other
compensation received for personal services you
performed. It also includes any amount received as a
scholarship that you included in your federal AGI.
12
ADDITIONS TO INCOME.
Determine which additions to income apply to you. Write the
correct amounts on lines 2-5 of Form 502. Instructions for
each line:
Line 2. TAX EXEMPT STATE OR LOCAL BOND INTEREST.
Enter the interest from non-Maryland state or local bonds or
other obligations (less related expenses). This includes interest
from mutual funds that invest in non-Maryland state or local
obligations. Interest earned on obligations of Maryland or any
Maryland subdivision is exempt from Maryland tax and should not
be entered on this line.
Line 3. STATE RETIREMENT PICKUP. Pickup contributions of a
State retirement or pension system member. The pickup amount
will be stated separately on your W-2 form. The tax on this portion
of your wages is deferred for federal but not for state purposes.
Line 4. LUMP SUM DISTRIBUTION FROM A QUALIFIED
RETIREMENT PLAN. If you received such a distribution, you will
receive a Form 1099R showing the amounts distributed. You must
report part of the lump sum distribution as an addition to income if
you le federal Form 4972.
Use the LUMP SUM DISTRIBUTION WORKSHEET (12A) to determine
the amount of your addition.
5
LUMP SUM DISTRIBUTION WORKSHEET (12A)
1. Ordinary income portion of distribution from
Form 1099R reported on federal Form 4972
(taxable amount less capital gain amount) .....$ _____________
2. 40% of capital gain portion of distribution from
Form 1099R ...........................
3. Add lines 1 and 2. .......................$ _____________
4. Enter minimum distribution allowance from
Form 4972 ............................$ _____________
5. Subtract line 4 from line 3. This is your addition
to income for your lump sum distribution. Enter
on Form 502, line 4. If this amount is less than
zero, enter zero ........................$ _____________
Note: If you were able to deduct the death benet exclusion on Form
4972, allocate that exclusion between the ordinary and capital gain
portions of your distribution in the same ratio before completing this
schedule.
Line 5. OTHER ADDITIONS TO INCOME. If one or more of these
apply to you, enter the total amount on line 5 and identify each item
using the code letter:
CODE LETTER
a. Part-year residents: losses or adjustments to federal income
that were realized or paid when you were a nonresident of
Maryland.
b. Net additions to income from pass-through entities not
attributable to decoupling.
c. Net additions to income from a trust as reported by the
duciary.
d. S corporation taxes included on line 8 of Maryland Form 502CR,
Part A, Tax Credits for Income Taxes Paid to Other States. (See
instructions for Part A of Form 502CR.)
e. Total amount of credit(s) claimed in the current tax year to
the extent allowed on Form 500CR for the following Business
Tax Credits: Enterprise Zone Tax Credit, Maryland Disability
Employment Tax Credit, Employment of Qualied Ex-Felons Tax
Credit, Research and Development Tax Credit,
Small Business
Research & Development Tax Credit, Maryland Employer Security
Clearance Costs Tax Credit (do not include Small Business First-
Year Leasing Costs Tax Credit),
and Cellulosic Ethanol Technology
Research and Development Tax Credit.
f. Oil percentage depletion allowance claimed under IRC Section
613.
g. Income exempt from federal tax by federal law or treaty that is
not exempt from Maryland tax.
h. Net operating loss deduction to the extent of a double benet.
See Administrative Release 18 at www.marylandtaxes.com.
i. Taxable tax preference items from line 5 of Maryland Form
502TP. The items of tax preference are dened in IRC Section
57. If the total of your tax preference items is more than
$10,000 ($20,000 for married taxpayers ling joint returns)
you must complete and attach Maryland Form 502TP, whether
or not you are required to le federal Form 6251 (Alternative
Minimum Tax) with your federal Form 1040.
j. 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.
k. Any refunds of advanced tuition payments made under the
Maryland Prepaid College Trust, to the extent the payments were
subtracted from federal adjusted gross income and were not
used for qualied higher education expenses, and any refunds
of contributions made under the Maryland College Investment
Plan or the Maryland Broker-Dealer College Investment Plan,
to the extent the contributions were subtracted from federal
adjusted gross income and were not used for qualied higher
education expenses. See Administrative Release 32.
l. Net addition modication to Maryland taxable income when
claiming the federal depreciation allowances from which the
State of Maryland has decoupled. Complete and attach Form
500DM. See Administrative Release 38.
m. Net addition modication 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. Complete and
attach Form 500DM. See Administrative Release 38.
n. Amount deducted on your federal income tax return for
domestic production activities (line 35 of Form 1040).
o. Amount deducted on your federal income tax return for tuition
and related expenses. Do not include adjustments to income
for Educator Expenses or Student Loan Interest deduction.
p. Amount attributable to Maryland’s decoupling from the federal
itemized deduction limitation threshold. This addition applies to
taxpayers who are itemizing deductions if their federal adjusted
gross income is $178,150 or more (or $89,075 if Married Filing
Separately). See ITEMIZED DEDUCTION WORKSHEET (14A),
Part II, line 13 in Instruction 14. You will need to complete this
worksheet before continuing fur ther with your Mar yland return.
cd. Net addition modication to Maryland taxable income resulting
from the federal deferral of income arising from business
indebtedness discharged by reacquisition of a debt instrument.
See Form 500DM and Administrative Release 38.
dm. Net addition modication from multiple decoupling provisions.
See the table at the bottom of Form 500DM for the line numbers
and code letters to use.
dp. Net addition decoupling modication from a pass-through
entity. See Form 500DM.
13 SUBTRACTIONS FROM INCOME.
Determine which subtractions from income apply to you.
Write the correct amounts on lines 8–14 of Form 502.
Instructions for each line:
Line 8. STATE TAX REFUNDS. Copy onto line 8 the amount of
refunds of state or local income tax included in line 1 of Form 502.
Line 9. CHILD CARE EXPENSES. You may subtract the cost of
caring for your dependents while you work. There is a limitation of
$3,000 ($6,000 if two or more dependents receive care). Copy onto
line 9 the amount from line 6 of federal Form 2441. You may also be
entitled to a credit for these taxable expenses. See instructions for
Part B of Form 502CR.
Line 10. PENSION EXCLUSION. You may be able to subtract
some of your taxable pension and retirement annuity income. This
subtraction applies only if:
a. You were 65 or over or totally disabled, or your spouse was
totally disabled, on the last day of the tax year, AND
b. You included on your federal return taxable income received as
a pension, annuity or endowment from an “employee retirement
system” qualied under Sections 401(a), 403 or 457(b) of
the Internal Revenue Code. [A traditional IRA, a Roth IRA, a
simplied employee plan (SEP), a Keogh plan, an ineligible
deferred compensation plan or foreign retirement income does
not qualify.]
Each spouse who receives taxable pension or annuity income and
is 65 or over or totally disabled may be entitled to this exclusion. In
addition, if you receive taxable pension or annuity income but you
are not 65 or totally disabled, you may be entitled to this exclusion
if your spouse is totally disabled. Complete a separate column in
the PENSION EXCLUSION COMPUTATION WORKSHEET (13A) for
each spouse. Combine your allowable exclusion and enter the total
amount on line 10, Form 502.
To be considered totally disabled, you must have a mental or physical
impairment which prevents you from engaging in substantial gainful
activity. You must expect the impairment to be of long, continued or
indenite duration or to result in your death. You must attach to your
return a certication from a qualied physician stating the nature
of your impairment and that you are totally disabled. If you have
previously submitted a physician’s certication, attach your own
statement that you are still totally disabled and that a physician’s
certication was submitted before.
If you are a part-year resident, complete PENSION EXCLUSION
COMPUTATION WORKSHEET (13A) using total taxable pension and
total Social Security and railroad retirement benets as if you were
a full-year resident. Prorate the amount on line 5 by the number of
months of Maryland residence divided by 12.
However, if you began to receive your pension during the tax year
you became a Maryland resident, use a proration factor of the
6
number of months you were a resident divided by the number of
months the pension was received.
For example, Pat Taxpayer moved to Maryland on March 1. If he
started to receive his pension on March 1, he would prorate the
pension exclusion by 10/10, which would mean he would be entitled
to the full pension exclusion. However, if he began to receive his
pension on February 1, Pat would prorate his pension by 10/11.
Please note that, in either case, the pro ration factor may not exceed
1.
Complete the PENSION EXCLUSION COMPUTATION WORKSHEET
(13A). Copy the amount from line 5 of the worksheet onto line 10
of Form 502.
L i n e 11 . FEDERALLY TAXED SOCIAL SECURITY AND RAILROAD
RETIREMENT BENEFITS. If you included in your federal adjusted
gross income Social Security, Tier I, Tier II and/or supplemental
railroad retirement benets, then you must include the total amount
of such benets on line 11. Social Security and railroad retirement
benets are exempt from state tax.
Line 12. NONRESIDENT INCOME. If you began or ended your
residence in Maryland during the year, you may subtract the portion
of your income received when you were not a resident of Maryland.
See Instruction 26 for part-year residents and Administrative
Release 1 for military personnel.
If your state of residence or your period of Maryland residence was
not the same as that of your spouse and you led a joint return,
follow Instruction 26 (c) through (p).
Line 13. SUBTRACTIONS FROM INCOME ON FORM 502SU.
Other certain subtractions for which you may qualify will be reported
on Form 502SU. Determine which subtractions apply to you and
enter the amount for each on Form 502SU. Enter the sum of all
applicable subtractions from Form 502SU on line 13 of Form 502,
and enter the code letters that represent the four highest dollar
amounts in the code letter boxes. If multiple subtractions apply,
be sure to identify all of them on Form 502SU and attach it to your
Form 502.
Note: 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.
CODE LETTER
a. Payments from a pension system to remen and policemen
for job related injuries or disabilities (but not more than the
amount of such payments included in your total income).
b. Net allowable subtractions from income from pass-through
entities, not attributable to decoupling.
c. Net subtractions from income reported by a duciary.
d. Distributions of accumulated income by a duciary, if income
tax has been paid by the duciary to the State (but not more
than the amount of such income included in your total income).
e. Prot (without regard to losses) from the sale or exchange of
bonds issued by the State or local governments of Maryland.
f. Benets received from a Keogh plan on which State income tax
was paid prior to 1967. Attach statement.
g. Amount of wages and salaries disallowed as a deduction due to
the work opportunity credit allowed under the Internal Revenue
Code Section 51.
h. Expenses up to $5,000 incurred by a blind person for a reader,
or up to $1,000 incurred by an employer for a reader for a blind
employee.
i. Expenses incurred for reforestation or timber stand improvement
of commercial forest land. Qualications and instructions are
on Form DNR393, available from the Department of Natural
Resources, telephone 410-260-8531.
j. Amount added to taxable income for the use of an ofcial
vehicle by a member of a state, county or local police or re
department. The amount is stated separately on your W-2
form.
k. Up to $6,000 in expenses incurred by parents to adopt a child
with special needs through a public or nonprot adoption
agency and up to $5,000 in expenses incurred by parents to
adopt a child without special needs.
l. Purchase and installation costs of certain enhanced agricultural
management equipment as certied by the Maryland
Department of Agriculture. Attach a copy of the certication.
m. Deductible artist’s contribution. Attach Maryland Form 502AC.
n. Payment received under a re, rescue, or ambulance personnel
length of service award program that is funded by any county
or municipal corporation of the State.
o. Value of farm products you donated to a gleaning cooperative
as certied by the Maryland Department of Agriculture. Attach
a copy of the certication.
p. Up to $15,000 of military pay included in your federal adjusted
SPECIFIC INSTRUCTIONS
NOTE: When both you and your spouse qualify for the pension exclusion, a separate column must be completed for each spouse.
Line 1. Enter your net taxable pension and retirement annuity included in your federal adjusted gross income. Do not include any
amount subtracted for military retirement income. See code letter u in Instruction 13. Do not include Social
Security and/or Railroad Retirement income on this line.
Line 2. The maximum allowable exclusion is $27,800.
Line 3. Enter your total Social Security and/or Railroad Retirement benefits. Include all Social Security and/or Railroad Retirement
benefits whether or not you included any portion of these amounts in your federal adjusted gross income. Include both Tier
I and Tier II Railroad Retirement benefits. 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.
Line 4. Subtract line 3 from line 2 to determine your tentative exclusion.
Line 5. Your pension exclusion is the smaller of your net taxable pension (line 1) or the tentative exclusion (line 4). Enter the smaller
amount on this line.
Review carefully the age and disability requirements in the instructions before completing this worksheet.
You Spouse
1. Net taxable pension and retirement annuity included in your federal adjusted gross income
(Do not include Social Security or Railroad Retirement). . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Maximum allowable exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $27,800 $27,800
3. Total benefits you received from Social Security and/or Railroad Retirement (Tier I and Tier II)
4. Tentative exclusion (Subtract line 3 from line 2.) (If less than 0, enter 0.). . . . . . . . . . . . . . .
5. Pension Exclusion (Enter the smaller of line 1 or 4 here and on line 10, Form 502.) 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PENSION EXCLUSION COMPUTATION WORKSHEET (13A)
7
gross income that you received while in the active service of
any branch of the armed forces and which is attributable to
service outside the boundaries of the U.S. or its possessions. To
compute the subtraction, follow the directions on the MILITARY
OVERSEAS INCOME WORKSHEET (13B). If your total military
pay exceeds $30,000, you do not qualify for the subtraction.
p. MILITARY OVERSEAS INCOME WORKSHEET (13B)
When both you and your spouse qualify for this military
subtraction, complete separate computations for each spouse.
1. ENTER the amount of military pay included in
your federal adjusted gross income
attributable to service outside the U.S.
If greater than $15,000, enter $15,000 ........$ _________
2. ENTER total military pay received
during the tax year ............$ _________
3. Maximum subtraction ..........$ 15,000
__________
4. SUBTRACT the amount on line 3 from line 2.
If this amount is less than zero (0), enter
zero (0) ..............................$ _________
5. SUBTRACT line 4 from line 1. This is your
subtraction from income. If the amount is zero
(0) or less, you are not eligible for this
subtraction. INCLUDE this amount on
line p of Form 502SU .....................$ _________
q. Unreimbursed vehicle travel expenses for:
1. A volunteer re company;
2. Service as a volunteer for a charitable organization whose
principal purpose is to provide medical, health or nutritional
care; AND
3. Assistance (other than providing transportation to and
from the school) for handicapped students at a Maryland
community college. Attach Maryland Form 502V .
r. Amount of pickup contribution shown on Form 1099R from the
state retirement or pension systems included in federal adjusted
gross income. The subtraction is limited to the amount of
pickup contribution stated on the 1099R or the taxable pension,
whichever is less. Any amount not allowed to be claimed on the
current year return may be carried forward to the next year
until the full amount of the State pickup contribution has been
claimed.
s. 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).
t. Payments received from the State of Maryland under Title 12
Subtitle 2 of the Real Property Article (relocation and assistance
payments).
u. Up to $5,000 of military retirement income received by a
qualifying individual during the tax year. To qualify, you must
have been a member of an active or reserve component of
the armed forces of the United States, an active duty member
of the commissioned corps of the Public Health Service, the
National Oceanic and Atmospheric Administration, or the Coast
and Geodetic Survey, a member of the Maryland National
Guard, or the member’s surviving spouse or ex-spouse.
v. The Honorable Louis L. Goldstein Volunteer Police, Fire, Rescue
and Emergency Medical Services Personnel Subtraction
Modication Program. $3,500 for each taxpayer who is a
qualifying volunteer as certied by a Maryland re, police,
rescue or emergency medical services organization. $3,500 for
each taxpayer who is a qualifying member of the U.S. Coast
Guard Auxiliary or Maryland Defense Force as certied by these
organizations. Attach a copy of the certication.
Code w is not being used this year. Please see Code l.
xa. Up to $2,500 per contract purchased for advanced tuition
payments made to the Maryland Prepaid College Trust. See
Administrative Release 32.
xb. Up to $2,500 per account holder per beneciary of the total
of all amounts contributed to investment accounts under the
Maryland College Investment Plan and Maryland Broker-Dealer
College Investment Plan. See Administrative Release 32.
y. Any income of an individual that is related to tangible or
intangible property that was seized, misappropriated or lost
as a result of the actions or policies of Nazi Germany towards
a Holocaust victim. For additional information, contact the
Revenue Administration Division.
z. Expenses incurred to buy and install handrails in an existing
elevator in a health care facility (as dened in Section 19-114
of the Health General Article) or other building in which at least
50% of the space is used for medical purposes.
aa. Payments from a pension system to the surviving spouse or
other beneciary of a law enforcement ofcer or reghter
whose death arises out of or in the course of their employment.
ab. Income from U.S. Government obligations. Enter interest on
U.S. Savings Bonds and other U.S. obligations. Capital gains
from the sale or exchange of U.S. obligations should be included
on this line. Dividends from mutual funds that invest in U.S.
government obligations also are exempt from state taxation.
However, only that portion of the dividends attributable to
interest or capital gain from U.S. government obligations can
be subtracted. You cannot subtract income from Government
National Mortgage Association securities. See Administrative
Releases 10 & 13.
bb. Net subtraction modication to Maryland taxable income when
claiming the federal depreciation allowances from which the
State of Maryland has decoupled. Complete and attach Form
500DM. See Administrative Release 38.
cc. Net subtraction modication 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. Complete and
attach Form 500DM. See Administrative Release 38.
cd. Net subtraction modication to Maryland taxable income
resulting from the federal ratable inclusion of deferred income
arising from business indebtedness discharged by reacquisition
of a debt instrument. Complete and attach Form 500DM. See
Administrative Release 38.
dd. Income derived within an arts and entertainment district by a
qualifying residing artist from the publication, production, or
sale of an artistic work that the artist created, wrote, composed
or executed. Complete and attach Form 502AE.
dm. Net subtraction modication from multiple decoupling
provisions. See the table at the bottom of Form 500DM.
dp. Net subtraction decoupling modication from a pass-through
entity. See Form 500DM.
ee. The amount received as a grant under the Solar Energy Grant
Program administered by the Maryland Energy Administration
(but not more than the amount included in your total income).
ff. Amount of the cost difference between a conventional on-site
sewage disposal and a system that uses nitrogen removal
technology, for which the Department of Environment’s
payment assistance program does not cover.
hh. Exemption adjustment for certain taxpayers with interest
on U.S. obligations. If you have received income from U.S.
obligations and your federal adjusted gross income exceeds
$100,000 ($150,000 if ling Joint, Head of Household, or
Qualifying Widow(er)), enter the difference, if any, between
the exemption amount based on your federal adjusted gross
income and the exemption amount based upon your federal
adjusted gross income after subtracting your U.S. obligations
using the EXEMPTION ADJUSTMENT WORKSHEET (13C).
hh. EXEMPTION ADJUSTMENT WORKSHEET (13C)
Line 1: ENTER the exemption amount to be
reported on line 19 of Form 502 using the
chart in Instruction 10. (If you are a
part-year resident, enter the amount to be
reported on line 19 before it is prorated.) ..$ __________
Line 2: ENTER your federal adjusted gross income
as reported on line 1 of your Form 502 ...$ __________
Line 3: ENTER your income from U.S. obligations
(line ab, Form 502SU) ...............$ __________
Line 4: SUBTRACT amount on line 3 from amount
reported on line 2. ..................$ __________
8
Line 5: RECALCULATE your exemption amount
using the chart in Instruction 10, using the
income from line 4. Remember to add your
$1,000 exemptions for age and blindness if
applicable ........................$ __________
Line 6: SUBTRACT the exemption amount
calculated on line 1 from the exemption
amount calculated on line 5. If the amount
is less than zero (0), enter zero (0). If the
amount is zero, you have already received
the maximum exemption that you are
entitled to claim on Form 502 ..........$ __________
If the amount is greater than zero (0), enter this amount as
a subtraction on line hh of Form 502SU.
Example:
Pat and Chris Jones had a federal adjusted gross income of $180,000.
They also had $40,000 on interest from U.S. Savings Bonds and had a
dependent son whom they claimed on the Maryland tax return. 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). If it were not for the $40,000 of U.S. Savings Bonds,
their federal adjusted gross income would have been $140,000 and
their exemption amount would have been $9,600 ($3,200 for three
exemptions). Therefore, Pat and Chris Jones are entitled to claim a
subtraction of $7,200 ($9,600 - $2,400) on line hh of Form 502SU.
ii. Interest on any Build America Bond that is included in your
federal adjusted gross income. See Administrative Release 13.
jj. 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.
kk. Qualied conservation program expenses up to $500 for an
application approved by the Department of Natural Resources
to enter into a Forest Conservation and Management Plan.
ll. Payment received as a result of a foreclosure settlement
negotiated by the Maryland Attorney General.
mm. Amount received by a claimant for noneconomic damages
as a result of a claim of unlawful discrimination under
Internal Revenue Code Section 62(e).
Line 14. TWO-INCOME SUBTRACTION. You may subtract up to
$1,200 if both spouses have income subject to Maryland tax and you
le a joint return. To compute the subtraction, complete the TWO-
INCOME MARRIED COUPLE SUBTRACTION WORKSHEET (13D).
14 ITEMIZED DEDUCTIONS.
If you gure your tax by the ITEMIZED DEDUCTION
METHOD, complete lines 17a and b on Maryland Form 502.
(See Instruction 16 to see if you will use the ITEMIZED
DEDUCTION METHOD.)
USE FEDERAL FORM 1040 SCHEDULE A
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 your federal adjusted gross income is less than $178,150
($89,075 if Married Filing Separately), simply copy the amount from
federal Schedule A, line 29, Total Itemized Deductions, on to line
17a of Form 502. Certain items of federal itemized deductions are
not eligible for State purposes and must be subtracted from line
17a. State and local income taxes used as a deduction for federal
purposes must be entered on line 17b. 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.
If your federal adjusted gross income is greater than
$178,150 ($89,075, if Married Filing Separately), copy the amount
from federal Schedule A, line 29, Total Itemized Deductions, onto
line 17a of Form 502. Next complete the ITEMIZED DEDUCTION
WO RKSHE ET (14A), if you elect to itemize deductions on your
Maryland return.
Part I of this worksheet is used to calculate federal itemized
deductions that would have existed but for the 2013 federal
legislation.
Part II is used to calculate the amount of the required
decoupling modication for itemized deductions that is
included on line 5 of Form 502. (See Instruction 12.)
Part III is used by taxpayers to calculate the amount of state
and local income taxes that were limited. Enter the amount
from line 20 of Part III on line 17b of Form 502.
You are not required to itemize deductions on your Maryland return
simply because you itemized on your federal return. Figure your tax
each way to determine which method is best for you.
If your unreimbursed business expenses include depreciation to
which an adjustment is required for Maryland purposes, complete
Form 500DM to calculate the addition modication “l” or subtraction
modication “bb.
15 FIGURE YOUR MARYLAND ADJUSTED
GROSS INCOME.
Complete lines 116 on Form 502. Line 16 is your Maryland
adjusted gross income.
16 FIGURE YOUR MARYLAND TAXABLE NET
INCOME.
To nd your taxable income you must subtract either the
standard deduction from the worksheet or the itemized
deductions you have entered on line 17 of Form 502. The
ITEMIZED DEDUCTION METHOD will lower your taxes if you
have enough deductions. If you are not certain about which
method to use, gure your tax both ways to determine which
method is best for you. Check the box on line 17 of Form 502
to show which method you will use. NOTE: You must use the
standard deduction if you are using Form 503 or if you did
not itemize on your federal return. Follow these instructions:
STANDARD DEDUCTION METHOD
(Check the box on line 17 of Form 502)
The STANDARD DEDUCTION METHOD gives you a standard
deduction of 15% of Maryland adjusted gross income (line 16) with
minimums of $1,500 and $3,000 and maximums of $2,000 and
$4,000, depending on your ling status. Use STANDARD DEDUCTION
WORKSHEET (16A) for your ling status to gure your standard
deduction. Write the result on line 17 of Form 502 or line 2 of Form
(a)
you
(b)
your spouse
1. ENTER the portion of federal adjusted gross income from line 1 of Form 502 attributable to each
spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. ENTER the portion of additions to income from line 6 of Form 502 attributable to each spouse. . . . . .
3. ADD lines 1 and 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. ENTER the portion of subtractions from income from lines 8-13 of Form 502 attributable to each
spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. SUBTRACT line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6. COMPARE the amounts on lines 5 (a) and (b) and enter the smaller amount here but not less than zero.
7. ENTER $1,200 or the amount on line 6, whichever is less. ENTER this amount on line 14 of Form 502.
TWO-INCOME MARRIED COUPLE SUBTRACTION WORKSHEET (13D)
9
If your
income is:
$10,000 or less ............................. $ _________
If your income is between $10,000 - $13,333
Enter your income from above: .................. $ _________
Multiply by 15 percent (.15) ....................
X
_________
This is your standard deduction .................. $ _________
$13,333 or over............................. $ _________
Enter your standard deduction on line 17 of
Form 502 or line 2 of Form 503.
PART I - To be completed by all taxpayers who itemize deductions and who had federal Adjusted Gross Income of
$178,150 or more ($89,075 if Married Filing Separately).
1. Enter the total of the amounts from your federal Itemized Deductions (Schedule A),
lines 4, 9, 15, 19, 20, 27, and 28 ......................................................... 1. $ _____________
2. Enter the total of the amounts from Schedule A, lines 4, 14, and 20 plus any gambling
and casualty or theft losses included on line 28. .............................................. 2. $ _____________
3. Is the amount on line 2 less than the amount on line 1?
No. Your deduction is not limited. Skip to line 10 of this schedule and enter the amount from
line 1 above on line 10 of Part 1.
Yes. Subtract line 2 from line 1 and enter amount on line 3 ................................... 3. $ _____________
4. Multiply line 3 by 80% (.80) ............................................ 4. $ ______________
5. Enter the amount of your Adjusted Gross Income from Form 502, line 1 ............................. 5. $ _____________
6. Enter $178,150 ($89,075 if married ling separately) .......................................... 6. $ _____________
7. Is the amount on line 6 less than the amount on line 5?
No. Your deduction is not limited. Skip to line 10 and enter the amount from line 1
on line 10 of Part I.
Yes. Subtract line 6 from line 5 ....................................................... 7. $ _____________
8. Multiply line 7 by 3% (.03) ..............................................8. $ ______________
9. Enter the smaller of line 4 or line 8 ........................................9. $ ______________
10. Tentative itemized deductions. Subtract line 9 from line 1. If less than zero, enter 0 .................... 10. $ _____________
PART II - Calculation of Maryland Itemized Deduction Decoupling Modication.
11. Enter your total federal itemized deductions from line 29 of federal Schedule A .........11. $ ______________
12. Enter the amount of tentative itemized deductions from Part I, line 10 above. .........12. $ ______________
13. Decoupled amount of itemized deductions (Subtract line 12 from line 11.
If less than zero, enter 0.) Enter this amount here and include on Form 502,
line 5 as addition modication, use letter code p. See Instruction 12 ................13. $ ______________
PART III - Calculation of State and Local Income Tax Limitation.
14. Enter the amount from Part II, line 11. .................................................... 14. $ _____________
15. Enter the amount from Part I, line 2 ...................................................... 15. $ _____________
16. Federal itemized deductions that were limited (SUBTRACT line 15 from line 14.) ........16. $ ______________
17. Federal itemized deductions subject to limitation (ENTER the total of lines 9, 10, 11,
12, 13, 19, 27 and 28 less any gambling and casualty or theft losses included in
line 28 of federal Schedule A.) .......................................................... 17. $ ______________
18. DIVIDE line 16 by line 17 ............................................................. 18. ___________ %
19. ENTER the amount of state and local income taxes from line 5 of federal Schedule A .....19. $ ______________
20. MULTIPLY line 18 by line 19. Enter here and on Form 502, line 17b .................20. $ ______________
Part Year Residents see Instruction 26.
ITEMIZED DEDUCTION WORKSHEET (14A)
If your filing status is:
Single, Married filing separately or Dependent taxpayer
Worksheet 1
Married filing jointly, Head of household
or Qualifying widow(er)
Worksheet 2
Your standard
deduction is:
Enter your income from
line 16 of Form 502 or
line 1 of Form 503.......... $ ____________
If your income is: Your standard
deduction is:
1,500
.15
2,000
If your
income is:a
$20,000 or less ............................. $ _________
If your income is between $20,000 - $26,667
Enter your income from above: .................. $ _________
Multiply by 15 percent (.15) ....................
X
_________
This is your standard deduction .................. $ _________
$26,667 or over............................. $ _________
Enter your standard deduction on line 17 of
Form 502 or line 2 of Form 503.
If your income is:
or or
or or
STANDARD DEDUCTION WORKSHEET (16A)
Enter your income from
line 16 of Form 502 or
line 1 of Form 503.......... $ ____________
Your standard
deduction is:
Your standard
deduction is:
3,000
.15
4,000
10
503. Then follow the instructions for EXEMPTIONS.
ITEMIZED DEDUCTION METHOD
(Check the box on line 17 of Form 502)
You may itemize your deductions only if you itemized deductions on
your federal return. See Instruction 14 for completing lines 17a and
b of Form 502. Enter the result on line 17b. You are not required
to itemize deductions on your Maryland return simply because
you itemized on your federal return. Figure your tax each way to
determine which method is best for you.
EXEMPTIONS
After completing the EXEMPTIONS area on your return, enter the
total exemption amount on line 19 of Form 502 or line 4 of Form 503.
PART-YEAR RESIDENTS AND NONRESIDENT MILITARY
TAXPAYER S
You must adjust your standard or itemized deductions and
exemptions. If you are a part-year resident, see Instruction 26. If
you are a nonresident military member ling a joint return with your
civilian spouse, see Administrative Release 1.
17 FIGURE YOUR MARYLAND TAX.
You must use the tax tables if your taxable income is less
than $100,000.
The 2013 Maryland tax rate schedules are shown so you can see
the tax rate that applies to all levels of income; however, do not
use them to gure your tax. 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 gure your tax. The tax tables and the
MARYLAND TAX COMPUTATION WORKSHEET SCHEDULES I AND II
have been based on these tax rate schedules.
Find the income range in the tax table that applies to the amount
on line 21 of Form 502 or line 5 of Form 503. Find the Maryland
tax corresponding to your income range. Enter the tax amount on
line 22 of Form 502 or line 6 of Form 503. If your taxable income
is $100,000 or more, use the MARYL AND TAX COMPUTATION
WORKSHEET (17A) at the end of the tax table.
MARYLAND TAX COMPUTATION WORKSHEET SCHEDULES
Tax Rate Schedule I
For taxpayers ling as Single, Married Filing Separately, or
as Dependent Taxpayers. This rate is also used for taxpayers
ling as Fiduciaries.
If taxable net income is: Maryland Tax is:
At least: but not over:
$0 $1,000 2.00% of taxable net income
$1,000 $2,000 $20.00 plus 3.00% of excess over $1,000
$2,000 $3,000 $50.00 plus 4.00% of excess over $2,000
$3,000 $100,000 $90.00 plus 4.75% of excess over $3,000
$100,000 $125,000 $4,697.50 plus 5.00% of excess over $100,000
$125,000 $150,000 $5,947.50 plus 5.25% of excess over $125,000
$150,000 $250,000 $7,260.00 plus 5.50% of excess over $150,000
$250,000 $12,760.00 plus 5.75% of excess over $250,000
Tax Rate Schedule II
For taxpayers ling Joint, Head of Household, or for
Qualifying Widows/Widowers.
If taxable net income is: Maryland Tax is:
At least: but not over:
$0 $1,000 2.00% of taxable net income
$1,000 $2,000 $20.00 plus 3.00% of excess over $1,000
$2,000 $3,000 $50.00 plus 4.00% of excess over $2,000
$3,000 $150,000 $90.00 plus 4.75% of excess over $3,000
$150,000 $175,000 $7,072.50 plus 5.00% of excess over $150,000
$175,000 $225,000 $8,322.50 plus 5.25% of excess over $175,000
$225,000 $300,000 $10,947.50 plus 5.50% of excess over $225,000
$300,000 $15,072.50 plus 5.75% of excess over $300,000
18 EARNED INCOME CREDIT, POVERTY LEVEL
CREDIT, CREDITS FOR INDIVIDUALS AND
BUSINESS TAX CREDITS.
If you claim earned income credit or poverty level credit, see
Instruction 19 for your local credit calculation. Form 500CR
Instructions are available online at www.marylandtaxes.com.
You must le Form 500CR electronically to claim a business income
tax credit.
Line 23 of Form 502. Line 7a of Form 503.
EARNED INCOME CREDIT.
If you claimed an earned income credit on your federal return, then
you may claim one-half (50%) of the federal credit on your Maryland
return. If you are a part-year resident or a member of the military,
see Instruction 26(o) before completing this worksheet. If you led
a joint federal return but a separate Maryland return, you may claim
a combined total of up to one-half the federal credit. Complete the
STATE EARNED INCOME CREDIT WORKSHEET (18A) to calculate the
amount to enter on line 23 of Form 502 or line 7a of Form 503.
STATE EARNED INCOME CREDIT WORKSHEET (18A)
(Part-year residents see Instruction 26(o).)
1. Maryland tax (from line 22 of Form 502 or
line 6 of Form 503) ...................1. ___________
2. Federal earned income credit ______ x 50%
(.50). Enter this amount here and on line 23
of Form 502 or line 7a of Form 503 ........2. ___________
3. Subtract line 2 from line 1. If less than
zero (0) enter zero (0) .................3. ___________
If line 3 is greater than zero (0), you may qualify for the Poverty
Level Credit. See instructions below.
If line 3 is zero (0), you may qualify for the Refundable Earned Income
Credit. See Instruction 21.
Line 24 of Form 502. Line 7b of Form 503. STATE POVERTY
LEVEL CREDIT. If your earned income and federal adjusted gross
income plus additions are below the poverty level income for the
number of exemptions on your federal tax return, you may be
eligible for the poverty level credit. You are not eligible for this credit
if you checked ling status 6 (dependent taxpayer) on your Maryland
income tax return.
Generally, if your Maryland state tax exceeds 50% of your federal
earned income credit and your earned income and federal adjusted
gross income are below the poverty income guidelines from the
STATE POVERTY LEVEL CREDIT WORKSHEET (18B), you may claim a
credit of 5% of your earned income.
Complete the STATE POVERTY LEVEL CREDIT WORKSHEET (18B) to
calculate the amount to enter on line 24 of Form 502 or line 7b of
Form 503.
This is not a refundable credit.
STATE POVERTY LEVEL CREDIT WORKSHEET (18B)
If you checked ling status 6 on your Maryland return, you are not
eligible for this credit.
1. Enter the amount from line 7 of Form 502, or
line 1 of Form 503. If you checked ling status
3 (married ling separately) and you led a
joint federal return enter your joint federal
adjusted gross income plus any Maryland
additions ........................... 1. ___________
2. Enter the total of your salary, wages, tips and
other employee compensation and net prot from
self-employment here, and on line 1b of Form
502 or 503, if line 1b is currently blank. (Do not
include a farm or business loss.) Also include
your distributive share of income from
pass-through entities ...................2. ___________
3. Find the number of exemptions in the chart
that is the same as the number of
exemptions entered on your federal tax
return. Enter the income level that
corresponds to the exemption number ......3. ___________
4. Enter the amount from line 1 or 2,
whichever is larger Compare lines 3 and 4.
If line 4 is greater than or equal to line 3,
STOP HERE. You do not qualify for this
credit. If line 3 is greater than Line 4,
continue to Line 5 ....................4. ___________
5. Multiply line 2 by 5% (.05). This is your
11
State Poverty Level Credit. Enter that
amount here and on line 24 of Form 502
or line 7b of Form 503. (Part-year residents
or members of the military, see
Instruction 26(o)) ....................5. ___________
POVERTY INCOME GUIDELINES
NUMBER OF EXEMPTIONS
ON FEDERAL RETURN INCOME LEVEL
1 $11,490
2 $15,510
3 $19,530
4 $23,550
5 $27,570
6 $31,590
7 $35,610
8 $39,630
If you have more than 8 exemptions, add $4,020 to the last income
level for each additional exemption.
Line 25 of Form 502. OTHER INCOME TAX CREDITS FOR
INDIVIDUALS. Enter the total of your income tax credits as listed
below. Complete and attach Form 502CR with Form 502.
a. CREDITS FOR INCOME TAXES PAID TO OTHER STATES. If
you have income subject to tax in both Maryland and another
state, you may be eligible for a tax credit. Note: You must attach
a copy of Form 502CR and also a copy of the tax return led
in the other state. If these are not attached, no credit will be
allowed.
b. CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES.
If you were eligible for a Child and Dependent Care Credit on
your federal income tax return and your income is below certain
thresholds, you are entitled to a tax credit equal to a percentage
of the federal credit.
c. QUALITY TEACHER INCENTIVE CREDIT. If yo u are a qualied
teacher who paid tuition to take graduate level courses required
to maintain certication, you may be eligible for a tax credit.
d. CREDIT FOR AQUACULTURE OYSTER FLOATS. If you
purchased a new aquaculture oyster oat during the tax year,
you may be entitled to a credit of up to $500 for the cost of the
oat.
e. LONG-TERM CARE INSURANCE CREDIT. If you paid a
premium for a long-term care insurance policy for yourself or
certain Maryland resident family members, you may be eligible
for a tax credit.
f. CREDIT FOR PRESERVATION AND CONSERVATION
EASEMENTS. If you donated an easement to the Maryland
Environmental Trust or the Maryland Agricultural Land
Preservation Foundation to preserve open space, natural
resources, agriculture, forest land, watersheds, signicant
ecosystems, view sheds or historic properties, you may be
eligible for a credit.
g. HEALTH ENTERPRISE ZONE PRACTITIONER TAX CREDIT.
If you are a qualied 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.
Line 26 of Form 502. BUSINESS TAX CREDITS. You must le
your Form 502 electronically to claim the following
nonrefundable business tax credits from Form 500CR.
a. ENTERPRISE ZONE TAX CREDIT. Businesses located in an
enterprise zone may be eligible for tax credits based upon wages
paid to qualifying employees.
b. MARYLAND DISABILITY EMPLOYMENT TAX CREDIT.
Businesses employing persons with disabilities as certied by
the State Department of Education or veterans with disabilities
as certied by the Department of Labor, Licensing and Regulation
may be eligible for tax credits based upon wages paid to and
child care and transportation expenses paid on behalf of those
employees.
c. JOB CREATION TAX CREDIT. Certain businesses that create
new qualied positions in Maryland may be eligible for a tax
credit based on the number of qualied positions created or
wages paid for these positions.
d. COMMUNITY INVESTMENT TAX CREDIT. 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. Individuals
who make a nonbusiness contribution may also be eligible for
this tax credit.
e. BUSINESSES THAT CREATE NEW JOBS TAX CREDIT. 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.
f. LONG-TERM EMPLOYMENT OF QUALIFIED EX-FELONS
TAX CREDIT. Businesses that hired qualied ex-felons prior
to December 31, 2011 under a program approved by the
Department of Labor, Licensing and Regulation may be eligible
for a credit based upon wages paid to the qualied employee
during their second year of employment.
g. WORK-BASED LEARNING PROGRAM TAX CREDIT. Expired
on December 31, 2013.
h. EMPLOYER-PROVIDED LONG-TERM CARE INSURANCE
TAX CREDIT. A credit may be claimed for costs incurred by an
employer who provides long-term care insurance as part of an
employee benet package.
i. SECURITY CLEARANCE COSTS TAX CREDIT. Businesses
that incur costs certied by the Department of Business
and Economic Development to construct or renovate
Sensitive Compartmented Information Facilities (SCIF)
or for certain Security Clearance Administrative Costs may be
eligible to claim a credit for security costs.
j. FIRST YEAR LEASING COSTS TAX CREDIT FOR A
QUALIFIED SMALL BUSINESS. Certain small businesses
performing security-based contracting that incur
expenses for rental payments owed during the rst
year of a rental agreement for spaces leased in
Maryland costs may be eligible to claim a credit for security costs
certied by the Department of Business and Economic
Development.
k. RESEARCH AND DEVELOPMENT TAX CREDIT. Businesses
may claim a credit for certain qualied research and development
expenses.
l. COMMUTER TAX CREDIT. B u sinesses may c laim a c r e dit fo r the
cost of providing qualifying commuter benets to the business
entities’ employees.
m. MARYLAND-MINED COAL TAX CREDIT. A qualifying
cogenerator, small power producer or electricity supplier may
claim a credit for the purchase of Maryland-mined coal.
n. ONE MARYLAND ECONOMIC DEVELOPMENT TAX CREDIT.
Businesses may claim a credit against the project cost and
start-up cost to establish, relocate or expand a business in a
distressed county in Maryland.
o. OYSTER SHELL RECYCLING TAX CREDIT. An individual or
business may claim a credit in an amount of $1 for each
bushel of oyster shells recycled during the taxable year
with a maximum credit of $750.
p. BIO-HEATING OIL TAX CREDIT. Businesses and individuals
may claim a credit of 3 cents for each gallon of bio-heating oil
purchased for space or water heating with a maximum credit of
$500.
q. CELLULOSIC ETHANOL TECHNOLOGY RESEARCH AND
DEVELOPMENT TAX CREDIT. Businesses and individuals
may claim a credit of up to 10% of the qualied research and
development expenses incurred in Maryland for technology that
is used to develop cellulosic biomass for conversion to ethanol
fuel.
r. WINERIES AND VINEYARDS TAX CREDIT. Businesses
and individuals may claim a credit of 25% of qualied
capital expenses, approved by the Department of
Business and Economic Development, made in
connection with the establishment of new wineries or vineyards
or capital improvements to existing wineries or vineyards.
12
s. ELECTRIC VEHICLE RECHARGING EQUIPMENT TAX
CREDIT. An individual or a corporation may be certied to claim
a credit for certain amount of cost for qualied electric vehicle
recharging equipment that is placed into service during the tax
year in which the credit is claimed.
For additional information regarding any of the above income tax
credits, see the Business Tax Credits Form 500CR Instructions
available at www.marylandtaxes.com.
NOTE: If you claim a business tax credit for items a, b, f, i, k or q an
addition to income must be included on line 5. See Instruction 12.
19 LOCAL INCOME TAX AND
LOCAL CREDITS.
Maryland counties and Baltimore City levy an income tax
which is a percentage of Maryland taxable net income. Use
the LOCAL TAX RATE CHART and the LOCAL TAX WORKSHEET
(19A) to gure your local income tax. Use the county (or
Baltimore City) you resided in on the last day of the tax year
and which you showed in the box at the top of Form 502 or
503. Military taxpayers should refer to Instruction 29.
2013 LOCAL TAX RATE CHART
Subdivision Rate
Baltimore City ............... .0320
Allegany County ............. .0305
Anne Arundel County .......... .0256
Baltimore County ............. .0283
Calvert County .............. .0280
Caroline County .............. .0263
Carroll County ............... .0305
Cecil County ................ .0280
Charles County .............. .0290
Dorchester County ............ .0262
Frederick County ............. .0296
Garrett County .............. .0265
Harford County .............. .0306
Howard County .............. .0320
Kent County ................ .0285
Montgomery County. . . . . . . . . . . .0320
Prince George’s County ........ .0320
Queen Anne’s County .......... .0320
St. Mary’s County ............ .0300
Somerset County ............. .0315
Talbot County ............... .0240
Washington County ........... .0280
Wicomico County ............. .0320
Worcester County ............ .0125
LOCAL TAX WORKSHEET (19A)
Multiply the taxable net income by your local tax rate from the LOCAL
TAX RATE CHART for the county in which you were a resident on the
last day of the tax year. Enter the result on line 29 of Form 502 or line
9 of Form 503. This is your local income tax.
1. TAXABLE net income from line 21 of Form
502 or line 5 of Form 503. ........... 1. $ ___________
2. LOCAL tax rate from chart above. The rst
digit has been entered for you. .........2.
3. LOCAL income tax (Multiply line 1 by line 2.)
Enter this amount on line 29 of Form 502
or line 9 of Form 503 rounded to the
nearest cent or whole dollar. .......... 3. $ ___________
Local earned income credit.
If you entered an earned income credit on line 23 of Form 502 or
line 7a of Form 503, complete the LOCAL EARNED INCOME CREDIT
WORKSHEET (19B).
LOCAL EARNED INCOME CREDIT WORKSHEET (19B)
(Part-year residents see Instruction 26 (o).)
1 Enter federal earned income credit from
your federal return .................. 1. ______________
2. Enter your local tax rate from line 2 of
the Local Tax Worksheet .............. 2.
3 Multiply line 2 by 10 and enter on line 4. ..3.
Example: .0256
x 10
.256
4. Local earned income credit rate .........4. . ___ ___ ___
5. Multiply line 1 by line 4. Enter here and
on line 30 of Form 502 or line 10a
of Form 503 ......................5. ____________
Note: In lieu of multiplying by 10, you may simply move the deci-
mal point one place to the right and enter on line 4.
Local poverty level credit. If you entered a poverty level credit
on line 24 of Form 502 or line 7b of Form 503, complete the LOCAL
POVERTY LEVEL CREDIT WORKSHEET (19C).
If you le Form 503, add the boxes for local earned income credit
(10a) and local poverty level credit (10b) and enter on line 10.
SPECIAL NOTE: If you and your spouse were domiciled in different
taxing jurisdictions, you should le separate Maryland returns even
though you led a joint federal return. (See Instruction 7.) However,
if you choose to le a joint Maryland return, please use the following
instructions. Enter both counties and/or local jurisdictions in the
county, city, town or special taxing area box of your return. If the
local tax rates are the same, complete the worksheets as instructed
and attach a schedule showing the local tax for each jurisdiction
based on the ratio of each spouse’s income to the total income. Also
note the words “separate jurisdictions” on line 29 of Form 502 or
line 9 of Form 503. If the local tax rates are different, calculate a
ratio of each spouse’s income to total income. Then apply this ratio
to the taxable net income and calculate the local tax for each spouse
separately using the appropriate local tax rates. Enter the combined
local tax on line 29 of Form 502 or line 9 of Form 503 and write
the words “separate jurisdictions” on that line. Attach a schedule
showing your calculations.
LOCAL POVERTY LEVEL CREDIT WORKSHEET (19C)
(Part-year residents see Instruction 26 (o))
Refer to the STATE POVERTY LEVEL CREDIT WORKSHEET (18A) in
Instruction 18. If the amount on line 3 is greater than the amount
on line 4, you are eligible to claim the local poverty level credit.
Complete this worksheet to calculate the amount of your credit.
A. ENTER the amount from line 2 of the
STATE POVERTY LEVEL CREDIT
WORKSHEET (18B) ..................A. ____________
B. ENTER your local tax rate from line 2 of
the LOCAL TAX WORKSHEET (19A) .......B.
C. MULTIPLY line A by line B. Enter the
amount here and on line 31 of Form 502
or line 10b of Form 503 ...............C. ____________
20
TOTAL MARYLAND TAX, LOCAL TAX AND
CONTRIBUTIONS.
Add your Maryland tax from line 28 of Form 502 or line 8 of
Form 503 and your local tax from line 33 of Form 502 or line
11 of Form 503. Enter the result on line 34 of Form 502 or line
12 of Form 503. Add to your tax any contribution amounts
and enter the total on line 38 of Form 502 or line 16 of Form
503.
CHESAPEAKE BAY AND ENDANGERED SPECIES FUND
You may contribute any amount you wish to this fund. The amount
contributed will reduce your refund or increase your balance due.
DEVELOPMENTAL DISABILITIES ADMINISTRATION
WAITING LIST EQUITY FUND
You may contribute any amount you wish to this fund. The amount
contributed will reduce your refund or increase your balance due.
MARYLAND CANCER FUND
You may contribute any amount you wish to this fund. The amount
13
contributed will reduce your refund or increase your balance due.
IMPORTANT: If the r e are not su f c ie nt c r edits or oth er payment s to
satisfy both your tax and the contribution you have designated, the
contribution amount will be reduced. If you have entered amounts
for contributions to multiple funds, any reduction will be applied
proportionately.
21 TAXES PAID AND REFUNDABLE CREDITS.
Write your taxes paid and credits on lines 39-42 of Form 502
or lines 16 and 17 of Form 503.
Instructions for each line:
Line 39 of Form 502. Line 17 of Form 503.
MARYLAND TAX WITHHELD. Write the total Maryland and local
tax withheld as shown on the wage and tax statements (Forms W-2,
W-2G or 1099) you have received. Add the amounts identied as
Maryland and local tax withheld on each form and write the total
on this line. Attach Forms W-2, W-2G and 1099 to your return if
Maryland tax is withheld. You will not get credit for your
withholding if you do not attach Forms 1099, W-2 or W-2G,
substantiating Maryland withholding.
IMPORTANT: Your wage and tax statements contain many numbers.
Be sure you add only the amounts identied as Maryland and local
tax withheld.
Line 40. ESTIMATED TAX PAYMENTS. Enter on line 40 the total
of:
a. Maryland estimated tax payments;
b. Amount of overpayment applied from 2012 return;
c. Payment made with a request for an automatic extension of time
to le your 2013 return. (See the instructions on Form 502E); AND
d. Reported income tax withheld on your behalf as an estimated
payment, if you participated in a nonresident real estate
transaction as an individual. Enter code number 506 in one of
the code number boxes to the right of the telephone number
area. The tax will be identied as Maryland tax withheld on Form
MW506NRS. Please attach a copy of your federal return and all
relevant schedules that report the sale of the property.
NOTE: Estimated tax payments are required if you expec t to re ceive
any income (like pensions, business income, capital gains, lottery,
etc.) from which no tax or not enough Maryland tax will be withheld.
Read the instructions for Form 502D, Maryland Personal Declaration
of Estimated Income Tax.
Line 41 of Form 502. Line 18 of Form 503.
REFUNDABLE EARNED INCOME CREDIT.
If one-half of your federal earned income credit is greater than
your Maryland tax, you may also be eligible for a refundable earned
income credit. This credit is the amount by which 25% of your
federal earned income credit exceeds your Maryland tax liability.
Complete the REFUNDABLE EARNED INCOME CREDIT WORKSHEET
(21A) and enter the result on this line.
REFUNDABLE EARNED INCOME CREDIT WORKSHEET (21A)
TO CLAIM CREDIT YOU MUST:
have an entry on line 23 and line 30 of Form 502 or line 7a and
line 10a of Form 503; and
have entered zero on line 3 of the STATE EARNED INCOME
CREDIT WORKSHEET (18A) in Instruction 18.
1. ENTER your federal earned income
credit ______ x 25% (.25) (Part-year
residents see Instruction 26(o)) ..........1. ____________
2. ENTER your Maryland tax from line 22 of
Form 502 or line 6 of Form 503 ..........2. ____________
3. SUBTRACT line 2 from line 1. If less than
zero (0), enter zero (0). This is your
refundable earned income credit .........3. ____________
If line 3 is greater than zero (0), enter the amount on line 41 of
Form 502 or line 18 of Form 503.
Line 42. REFUNDABLE INCOME TAX CREDITS. Enter the total
of your income tax credits as listed below:
1. NEIGHBORHOOD STABILIZATION TAX CREDIT. If you own
and live in a home in Baltimore County you may qualify for this
credit. See instructions for Form 502CR.
2. SUSTAINABLE COMMUNITIES TAX CREDIT. A credit is al-
lowed for a certain percentage of qualied rehabilitation expendi-
tures, as certied by the Maryland Historical Trust. Attach a copy
of Form 502S and the certication.
3. REFUNDABLE BUSINESS INCOME TAX CREDITS. One
Maryland Economic Development Tax Credit,
Biotechnology Investment Incentive Tax Credit, Clean
Energy Incentive Tax Credit, Health Enterprise Zone
Hiring Tax Cre dit, Film Production Activity Tax Credit, and Small
Business Research and Development Tax Credit. See Form
500CR instructions at www.marylandtaxes.com.
4. IRC SECTION 1341 REPAYMENT. If you repaid an amount this
year reported as income on a prior year federal tax return that was
greater than $3,000, you may be eligible for an IRC Section 1341
repayment credit. For additional information, see Administrative
Release 40.
5. NONRESIDENT PTE TAX. If you are the beneciary of a trust
for which nonresident PTE tax was paid, you may be entitled to
a share of that tax. If you are a partner or a member of a pass-
through entity for which nonresident PTE tax was paid, you may
be entitled to a share of that tax.
Complete and attach Form 502CR with Form 502.
22 OVERPAYMENT OR BALANCE DUE.
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). Read instructions under underpayment OF
E S T I M AT E D TA X a n d t h e n g o t o B A L A N C E D u e o r O v e r p a y m e n t .
UNDERPAYMENT OF ESTIMATED TAX
If you had income from which tax was not withheld or did not
have enough tax withheld during the year, you may have owed
an estimated tax. All taxpayers should refer to Form 502UP to
determine if they owe interest because they paid too little estimated
tax during the year.
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. Attach Form 502UP.
Generally, you do not owe interest if:
a. you owe less than $500 tax on income that is not subject to
Maryland withholding, OR
b. 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
c. you made quarterly payments during the year that equal 90% of
this year’s tax.
Special rules apply if your gross income from farming or shing is
at least two-thirds of your total estimated gross income. See Form
502UP for additional information and instructions for claiming this
exemption from interest.
INTEREST FOR LATE FILING
Interest is due at the rate of 13% annually or 1.08% per month for
any month or part of a month that a tax is paid after the original due
date of the return. Enter any interest due in the appropriate box of
your tax return.
Penalty up to 25% may be assessed by the Revenue Administration
Division for failing to pay any tax, or failing to le a tax return, when
due.
TOTAL INTEREST
Enter the total of interest for underpayment of estimated tax and
interest for late ling on line 48 of Form 502 or line 22 of Form 503.
BALANCE DUE
If you le Form 502 and have a balance due on line 44, add this
amount to any amount on line 48. Put the total on line 49.
If you le Form 503 and have a balance due on line 20, add this
amount to any amount on line 22. Put the total on line 23.
14
Pay your balance due (unless it is less than $1.00). Go to Instructions
23 and 24 regarding signatures, attachments and mailing.
OVERPAYMENT
If you le Form 502 and have an overpayment on line 45, the
Revenue Administration Division will refund any amount of $1.00 or
more. If you want part or all of your overpayment applied to your
2014 estimated tax, then write the amount you want applied on
line 46. Overpayments may rst be applied to previous years’ tax
liabilities or other debts as required by federal or state law. If you
must pay interest for underpayment of estimated tax, enter the
amount of interest from line 18 of Form 502UP on line 48. Subtract
lines 46 and 48 from your overpayment (line 45). This is the amount
of your refund. Write this amount on line 47. No refunds of less than
$1.00 will be sent. If the amount of interest charges from Form
502UP or line 48 is more than the overpayment or line 45 of Form
502, enter zero (0) on line 46 and 47. Then subtract line 48 from
line 45 and enter the result on line 49. If you prefer, you may leave
line 48 blank and the Revenue Administrative Division will gure the
interest charges and send you a bill. Go to Instructions 23 and 24
regarding signatures, attachments and mailing.
If you le Form 503 and have an overpayment on line 21, this is
the amount of your refund. Overpayments may rst be applied
to previous years’ tax liabilities or other debts as required by
federal or state law. No refunds of less than $1.00 will be sent.
Go to Instructions 23 and 24 for information regarding signatures,
attachments and mailing.
The length of time you have for claiming a refund is limited. See
Instruction 28 for more information.
DIRECT DEPOSIT OF REFUND
To comply with banking rules, we ask you to indicate on your return
if the state refund is going to an account outside the United States.
If you indicate that this is the case, do not enter your routing and
account numbers, as the direct deposit option is not available to
you. We will send you a paper check. Complete lines 50a, b and c of
Form 502 or lines 24a, b and c of Form 503 if you want us to deposit
your refund directly into your account at a bank or other nancial
institution (such as a mutual fund, brokerage rm or credit union)
in the United States.
Check with your nancial institution to make sure your
direct deposit will be accepted and to get the correct
routing and account numbers. The State of Maryland
is not responsible for a lost refund if you enter the
wrong account information.
Line 50a of Form 502.
Line 24a of Form 503. Check the appropriate box to identify the
type of account that will be used (checking or savings). You must
check one box only or a refund check will be mailed.
Line 50b of Form 502.
Line 24b of Form 503. The routing number must be nine digits.
If the rst two digits are not 01 through 12 or 21 through 32, the
direct deposit will be rejected and a check will be mailed.
If you are not sure of the correct routing number or if your check
states that it is paya