Maryland Income Tax Forms & Instructions Booklet
Extracted from PDF file 2020-maryland-resident-booklet.pdf, last modified October 2020
Income Tax Forms & Instructions BookletM A RY L A ND 2020 STATE & LOCA L TA X FOR MS & I NSTRUC T IONS For filing personal state and local income taxes for full or part-year Maryland residents In 1964, the Chesapeake Bay Retriever, named after the famous Bay region of the breed’s origin, was declared the official dog of Maryland Peter Franchot, Comptroller Scan to check your refund status after filing. A Message from Comptroller Peter Franchot Dear Maryland Taxpayers: Since I took office as your Comptroller in 2007, our agency has become a national model for efficiency, effectiveness and customer service. We continue to deliver first-class customer service while tackling emerging threats such as tax fraud and identity theft. The year 2020 delivered challenges not seen in generations. It tested our resolve and its impact will reverberate for years. From a fiscal standpoint, the COVID-19 pandemic rattled our state’s economy, but did not shatter it. Maryland has a strong economic base that should help accelerate our recovery. Through it all, our 1,100-person agency remains committed to our core mission: being respectful, being responsive and getting results for Maryland taxpayers. Last year, we disbursed $2.9 billion in refunds, with most electronic payments issued in less than three business days. Our agency’s state-of-the-art fraud detection system has been widely lauded, and combined with the investigative and prosecutorial powers granted to my office via the 2017 Taxpayer Protection Act, we are keeping Marylanders safe from criminals engaging in identity theft and tax fraud. Since 2007, our office has suspended the processing of returns from more than 230 preparers at 250 locations. In total, during my tenure, nearly 120,000 fraudulent returns worth $225 million have been blocked. As Comptroller, I also understand that while we stress the importance of consistency and predictability in the tax code, small changes occur each year. Below are a few bills that became law following the 2020 General Assembly session: • SB523 authorizes a pass-through entity to elect to be taxed at the entity level on resident members’ shares of income. • HB980 increases to $150,000 the maximum tax credit that may be claimed for installing an energy storage system on commercial property. • SB751 extends the termination date of the apprenticeship income tax credit under the More Jobs for Marylanders Program to June 30, 2025, and increases the credit from $1,000 to $3,000 for each eligible apprentice. • HB276 expands eligibility for a subtraction modification to law enforcement officers of the Maryland-National Capital Park Police and Washington Suburban Sanitary Commission Police Force. • HB1326 exempts the following parts and equipment for an artificial hearing device from sales and use tax: custommade earmolds, battery chargers and receivers. • SB843 creates a sales and use tax exemption for the sale of materials, equipment or supplies used by a caterer to perform a contract for catering services and intended for resale by the caterer and used directly or predominantly in performing the catering contract. Also, it has been determined that Maryland is automatically decoupled from provisions of the Coronavirus Aid, Relief, and Economic Security Act (also known as the CARES Act) related to tax year 2020; however, conforms to the provisions of the CARES Act for certain tax years prior to 2020. Taxpayers whose federal taxes for tax years prior to 2020 are impacted by provisions of the CARES Act related to net operating losses, business interest expense deductions, or loss limitations may need to file amended Maryland returns for those prior years. If you have questions about these changes or anything else regarding your returns, do not hesitate to call my office at 1-800-MD-TAXES or email us at [email protected] As we begin the 2021 Tax Filing Season with these changes in effect, our agency will continue to provide the level of service that you expect and deserve. As always, I will continue to promote policies that benefit the long-term fiscal health of the State of Maryland. Sincerely, Peter Franchot Comptroller TABLE OF CONTENTS Filing Information. . . . . . . . . . . . . . . . . . . . . . . . ii Assembling your return. . . . . . . . . . . . . . . . . . . iii Five Fast FAQs . . . . . . . . . . . . . . . . . . . . . . . . . iii INSTRUCTION. . . . . . . . . . . . . . . . . . PAGE 1. Who must file?. . . . . . . . . . . . . . . . . . . . . . . 1 2. Use of federal return. . . . . . . . . . . . . . . . . . . 2 3. Maryland Healthcare Coverage. . . . . . . . . . . . 2 4. Name and address. . . . . . . . . . . . . . . . . . . . 2 5. Social Security Number(s). . . . . . . . . . . . . . . 2 6. Maryland Political Subdivision information. . . . 3 7. Filing status. . . . . . . . . . . . . . . . . . . . . . . . . 4 8. Special instructions for married filing separately.. . . . . . . . . . . . . . . . . . . . . . 4 9. Part-year residents. . . . . . . . . . . . . . . . . . . . 5 10. Exemptions. . . . . . . . . . . . . . . . . . . . . . . . . 5 11. Income. . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 12. Additions to income . . . . . . . . . . . . . . . . . . . 5 13. Subtractions from income. . . . . . . . . . . . . . . 7 14. Itemized Deductions. . . . . . . . . . . . . . . . . . . 11 15. Figure your Maryland Adjusted Gross Income. 12 16. Figure your Maryland taxable net income . . . . 12 17. Figure your Maryland tax. . . . . . . . . . . . . . . . 12 18. Earned income credit, poverty level credit, credits for individuals and business tax credits.13 19. Local income tax and local credits . . . . . . . . . 15 20. Total Maryland tax, local tax and contributions. . . . . . . . . . . . . . . . . . . . . 16 21. Taxes paid and refundable credits.. . . . . . . . . 16 22. Overpayment or balance due. . . . . . . . . . . . . 17 23. Telephone numbers, code number, signatures and attachments.. . . . . . . . . . . . . . . . . . . . . 18 24.Electronic filing, mailing and payment instructions, deadlines and extension. . . . . . . 18 25. Fiscal year. . . . . . . . . . . . . . . . . . . . . . . . . . 19 26.Special instructions for part-year residents. . . . 19 27.Filing return of deceased taxpayer . . . . . . . . . 20 28. Amended returns. . . . . . . . . . . . . . . . . . . . . 21 29. Special instructions for military taxpayers. . . . 21 • Tax Tables. . . . . . . . . . . . . . . . . . . . . . . 22-28 Forms and other information included in this booklet: • Form 502 • Form PV • Form 502B • Form 502R • Form 502SU • Form 502UP • Privacy act information • Maryland Payment Voucher Worksheet (PVW) for Estimated Tax and Extension Payments • State Department of Assessments and Taxation Information NEW FOR 2020 Form 502: • Direct Deposit of Refund section on page 4 of Form 502 and its Instruction 22 were expanded for taxpayers to authorize the State of Maryland to disclose to their bank and to National Automated Clearing House Association (NACHA) any tax return information necessary to make the deposit, such as their name and the name(s) (Line 51d.) as it appears on the bank account, in order for the Comptroller’s office to deposit the refund directly into their account at a bank or other financial institution in the United States. Local Tax Income Tax Rate: For a complete list of counties and city local tax rates, see Instruction 19 or visit www.marylandtaxes. gov. New Subtraction Modifications: There are two subtraction modifications that have been updated and two new subtraction modifications. For more information, see Instruction 13 (Line 13., Code Letters oo., uu., va., and vv.). Tax Credits (individual/business): There are no new tax credits available. Refundable Tax Credits: There is one new tax credit available. See Instruction 21. The CARES Act of 2020: In response to the COVID-19 pandemic, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act. The Act temporarily altered several tax provisions enacted under the Tax Cuts and Jobs Act (TCJA) intended to increase cash flow and reduce the income tax burden on corporations, partnerships, and individuals. Relief includes: the temporary and retroactive reinstatement of Net Operating Loss (NOL) carryback provisions for tax years 2018, 2019, and 2020 previously repealed under the TCJA in Internal Revenue Code (IRC) § 172; a decreased limitation on business interest expenses subject to deduction in tax years 2019 and 2020 under IRC § 163(j); and the elimination of loss limitations imposed on non-corporate taxpayers by the TCJA under IRC § 461(l) for tax years 2018, 2019, and 2020. The CARES Act also provided a technical correction giving qualified business improvements (QIP) a 15-year recovery period, thereby making those assets eligible for 100% bonus depreciation under IRC § 168. For more information on Maryland’s conformity to the CARES Act, see the Tax Alert issued July 24, 2020 at www.marylandtaxes.gov. Senate Bill 987, Acts of 2020: This bill passed by Maryland General Assembly provides for the redevelopment of Laurel Park in Anne Arundel County and Pimlico Race Course in Baltimore City, by allowing a subtraction modification of a resident for gain recognized as a result of the direct or indirect transfer or conveyance of any property located, or used, at or within Laurel Park and Pimlico sites; and any portion of the Bowie Race Course Training Center Property; and the amount of income recognized as a result of any expenditure of funds directly or indirectly by the State investment in the sites. Senate Bill 523, Acts of 2020: This is a result of Senate Bill 523 (Acts of 2020), adding a definition of “pass-through entity’s taxable income,” which requires pass-through entities to pay the tax imposed on distributive or pro rata shares of nonresident and nonresident entity members, and gives pass-through entities the option to pay the tax imposed on distributive or pro rata shares of income of resident members. House Bill 276, Acts of 2020: This bill modifies the definition of law enforcement officers to include members of the MarylandNational Capital Park Police (MNCPP) or The Washington Suburban Sanitary Commission Police Force (WSSCPF) who live in MarylandWashington Regional district with crime rates higher than the State’s crime rate. These officers are now eligible for the subtraction of $5,000 of income. House Bill 1510, Acts of 2020: This bill adds as a subtraction of the value of a subsidy for rental expenses received by a resident of Howard County under the “Live Where You Work” program of the Downtown Columbia Plan. i GETTING HELP for where you lived on December 31, 2020, or the last day of the year for fiscal filers. See Instruction 19. • Tax Forms, Tax Tips, Brochures and Instructions: These are available online at www.marylandtaxes.gov and branch offices of the Comptroller (see back cover). For forms only, call 410-260-7951. • Original Return: Send only your original completed Maryland tax return. Photocopies can delay processing of your refund. If you filed electronically, do not send a paper return. • Telephone: February 1 - April 15, 2021, 8:30 a.m. until 7:00 p.m., Monday through Friday, call 1-800-MDTAXES (1800-638-2937) or from Central Maryland 410-260-7980. • Federal Forms: Do not send federal forms, schedules or copies of federal forms or schedules unless requested. • Email: Contact [email protected] • Photocopies: Remember to keep copies of all federal forms and schedules and any other documents that may be required later to substantiate your Maryland return. • Extensions: To telefile an extension, call 410-260-7829; to file an extension online, visit www.marylandtaxes.gov. • Ink: Use only blue or black ink to complete your return. Do not use pencil. RECEIVING YOUR REFUND • Direct Deposit: To have your refund deposited to your bank or other financial account, enter your account number, routing numbers, and the name(s) as it appears on the bank account at the bottom of your return. • Attachments: Make sure to send all wage and tax statements such as W-2s, 1099s and K-1s. Ensure that the state tax withheld is readable on all forms. Ensure that the state income modifications and state tax credits are clearly shown on all K-1s. • Deposit of Income Tax Refund to more than one account: Form 588 allows income tax refunds to be deposited to more than one account. See Instruction 22 for more information. Check with your financial 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. • Colored Paper: colored paper. • Bar Codes: Do not print the Maryland return on Do not staple or destroy the bar code. PAYING YOUR TAXES • Direct Debit: If you file electronically and have a balance due, you can have your income tax payment deducted directly from your bank account. This free service allows you to choose your payment date, anytime until April 30, 2021. Visit www.marylandtaxes.gov for details. • Check: Unless otherwise requested, we will mail you a paper check. • Refund Information: To request information about your refund, visit www.marylandtaxes.gov, or call the refund information line 1-800-218-8160 or from Central Maryland 410-260-7701. • Bill Pay Electronic Payments: If your paper or electronic tax return has a balance due, you may pay electronically at https://interactive.marylandtaxes.gov/Individuals/ Payment/ The amount you designate will be debited from your bank or financial institution on the date that you choose. 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. • Checks and Money Orders: Make check or money order payable to Comptroller of Maryland. We recommend you include your Social Security Number on your check or money order. • Security: Your information is transmitted securely when you choose to file electronically. It is protected by several security measures, such as multiple firewalls, state-of-theart threat detection and encrypted transmissions. ALTERNATIVE PAYMENT METHODS For alternative methods of payment, such as a credit card, visit www.marylandtaxes.gov. • iFile: Free Internet filing is available for Maryland income tax returns with no income limitation at https://interactive. marylandtaxes.gov/Individuals/iFile_ChooseForm/ default.asp. PRIVACY ACT INFORMATION The Tax-General Article of the Annotated Code of Maryland authorizes the Comptroller of Maryland 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 file. This is so we know who you are and can process your return and papers. • PC Retail Software: Check the software requirements to determine eFile eligibility before you purchase commercial off-the-shelf software. Use software or link directly to a provider site to prepare and file your return electronically. • eFile: Ask your professional tax preparer to eFile your return. You may use any tax professional who participates in the Maryland Electronic Filing Program. 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. • IRS Free File: Free Internet filing 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.gov to use the free iFile Internet filing for Maryland income tax returns after using the IRS Free File for your federal return. You may look at any records held by the Comptroller of Maryland 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 Comptroller of Maryland may be given to the United States Internal Revenue Service, an authorized official of any state that exchanges tax information with Maryland and to an officer of this State having a right to the information in that officer’s official capacity. The information may be obtained in accordance with a proper legislative or judicial order. 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 dependents. The Social Security Number will be validated by the IRS before the return has completed processing. If you opt in, certain information from your return may be shared with the Maryland Health Benefit Exchange (see Instruction 3). • Local Tax: Use the correct local income tax rate, based on your county of residence on the last day of the tax year ii WHAT YOU SHOULD SEND ASSEMBLING YOUR RETURN • Your original, completed Maryland income tax return (Form 502) and Dependent Form 502B as applicable. To prevent any delay of processing your return, the content of the return must be fully printed on a letter-size 8 ½” X 11” paper without any shrinkage or reduction. 502CR 502 • Form PV for returns with payment by check or money order. Attach the payment to the Form PV. The Form PV and payment are placed before the Form 502 for mailing purposes. The Form PV and payment are not attached to the Form 502. W2 • Form 502R if you have taxable retirement income. • Form 588 if you elect to have your refund direct deposited to more than one account. 502CR 502 MD TAX RETURN W2 2020 ATTACH W2(S)/1099(S) WITH ONE STAPLE IN CENTER OF PAGE • W-2(s)/1099(s) showing Maryland tax withheld. • Schedules K-1 showing Maryland tax withheld and/or Maryland tax credit. • If you have a balance due, and if not filing and paying electronically, include 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 may be required according to the instructions if you claim certain credits or subtractions. These include: 500DM, 502CR, 502TP, 502UP, 502V, 502S and 502SU. PV PV • A copy of the tax return you filed in the other state or locality if you’re claiming a tax credit on Form 502CR, Part A. DO NOT SEND CHECK/ MONEY ORDER • Photocopies of your Maryland return. • Federal forms or schedules unless requested. • Any forms or statements not requested. • Returns by fax. ATTACH PAYMENT TO PV WITH ONE STAPLE IN CENTER OF PAGE • Returns on colored paper. • Returns completed in pencil. • Returns with the bar code stapled or destroyed. FIVE FAST FREQUENTLY ASKED QUESTIONS 1. Pension Exclusion. Q: Can I claim both pensions exclusions, the standard on line 10a and the Retired Correctional Officer, Law Enforcement Officer, or Fire, Rescue, or Emergency Services Personnel on line 10b of Form 502? A: No. You may only claim one pension exclusion per individual based on age. See instructions 13 for details. 2. Pension Exclusion Qualifying Plans. Q: Do 401 (k) and 403(b) plans qualify for the pension exclusion? A: Yes, but an IRA does not. For more information, refer to Line 10a. of Instruction 13; the chart in the Instructions of Form 502R; or visit www.marylandtaxes.gov. 3. Itemized deductions. Q: Can I claim itemized deductions on my Maryland return if I claimed standard deduction on my federal return? A: No. You may claim itemized deductions on your Maryland return only if you claimed itemized deductions on your federal return. If you claimed your itemized deductions on your federal return, you may figure your tax using both deduction methods to determine which is best for you. iii Note: Due to the State and local tax limitations (SALT), the state and local tax line 17b Form 502 is capped at $10,000.00 or $5,000 if married filing separately plus Preservation and Conservation Easements tax credit from part F of the Form 502CR. 4. Physical Address of the taxing area. Q: What is my physical address as of December 31st or the last day of the taxable year? A: Your Maryland resident address. If you moved during the taxable year, your physical address is your Maryland resident address on the last day you resided in Maryland. Q: What is my 4-digit political subdivision code / taxing area? A: Your 4-digit code represents the taxing area based on your Maryland physical address. 5. PV – Use for personal taxes only. Q: Can I use the Form PV for payments of anything other than my personal taxes? A: No. The Form PV is used to remit balance due payments for Forms 502 and 505, estimated payments, and extension payments. Bring Back a Cleaner, Healthier Chesapeake Bay! Donate to the Chesapeake and Endangered Species Fund on your Maryland State Income Tax Form You aren’t just helping to protect the Chesapeake Bay and the creatures calling it home, you are investing in your own community; helping to plant trees, remove trash, and give students first-hand experiences outside of the classroom. Donations are split evenly between the non-profit Chesapeake Bay Trust and the Wildlife and Heritage Division of the Department of Natural Resources. The Trust has been rated a 4-star charity by Charity Navigator for two decades, with, on average 90 cents for every dollar going to project funding. For more information about the Chesapeake Bay Trust and how your donation is used visit www.cbtrust.org SUPPORT CHILDREN AND ADULTS WITH DEVELOPMENTAL DISABILITIES Children and adults with developmental disabilities, such as autism and Down syndrome, count on concerned citizens like you to help the Developmental Disabilities Administration provide: • Support services • Job training and employment • Community living opportunities • Crisis intervention DO NOT WAIT — PLEASE DONATE! Your gift will be deducted from your tax refund or added to your tax payment. Use line 36 on Form 502, line 23 on Fiduciary Form 504 or line 39 on Non Resident Form 505 For more information, call the Developmental Disabilities Administration at 410-767-5600 or visit dda.health.maryland.gov. MARYLAND FORM 502 2020 RESIDENT INCOME TAX RETURN INSTRUCTIONS 1 DUE DATE WHO MUST FILE? Your return is due by April 15, 2021. If you are a fiscal year taxpayer, see Instruction 25. If any due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day. This booklet and forms are for residents and part-year residents of Maryland. In general, you must file a Maryland return if you are or were a resident of Maryland AND you are required to file a federal return. Information in this section will allow you to determine if you must file 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. To speed up the processing of your tax refund, consider filing electronically. You must file within three years of the original due date to receive any refund. For more information visit www. marylandtaxes.gov. COMPLETING THE RETURN WHO IS A RESIDENT? You must write legibly using blue or black ink when completing your return. You are a resident of Maryland if: a. Your permanent home is or was in Maryland (the law refers to this as your domicile). DO NOT use pencil or red ink. Submit the original return, not a photocopy. If no entry is needed for a specific 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. OR b. Your permanent home is outside of Maryland, but you maintained a place of abode (a place to live) in Maryland for more than six months of the tax year. If this applies to you and you were physically present in the state for 183 days or more, you must file a full-year resident 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 cent. PART-YEAR RESIDENTS If you began or ended residence in Maryland during the tax year, you must file a Maryland resident income tax return. See Instruction 26. ELECTRONIC FILING INSTRUCTIONS The instructions in this booklet are designed specifically for filers of paper returns. MILITARY AND OTHERS WORKING OUTSIDE OF MARYLAND If you are filing electronically and these instructions differ from the instructions for the electronic method being used, you should comply with the instructions appropriated for that method. Military and other individuals whose domicile is in Maryland, but who are stationed or work outside of Maryland, including overseas, retain their Maryland legal residence. Maryland residency is not lost because of duty assignments outside of the State; see Administrative Release 37. Military personnel and their spouses should see Instruction 29. Free internet filing is available for Maryland income tax returns. Visit www.marylandtaxes.gov/online-services/individuals.php Software vendors should refer to the e-file handbook for their instructions. TO DETERMINE IF YOU ARE REQUIRED TO FILE A MARYLAND RETURN SUBSTITUTE FORMS a. Add up all of your federal gross income to determine your total federal income. Gross income is defined 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 property, interest, rents, royalties, dividends, alimony, annuities, pensions, income from partnerships or fiduciaries, etc. If modifications or deductions reduce your gross income below the minimum filing level, you are still required to file. IRS Publication 525 provides additional information on taxable and nontaxable income. You may file your Maryland income tax return on a computerprepared 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 or to see a list of Approved Software Vendors for Maryland Substitute Tax Forms, visit www. marylandtaxes.gov. PENALTIES There are severe penalties for failing to file a tax return, failing to pay any tax when due, filing a false or fraudulent return, or making a false certification. The penalties include criminal fines, imprisonment and a penalty on your taxes. In addition, interest is charged on amounts not paid. b. Do not include Social Security or railroad retirement benefits 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. To collect unpaid taxes, the Comptroller is directed to enter liens against the salary, wages or property of delinquent taxpayers. MINIMUM FILING LEVELS TABLES TABLE 1 MINIMUM FILING LEVELS FOR TAXPAYERS UNDER 65 TABLE 2 MINIMUM FILING LEVELS FOR TAXPAYERS 65 OR OVER Single person (including dependent taxpayers). . . . . . Joint Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Married persons filing separately. . . . . . . . . . . . . . . . Head of Household . . . . . . . . . . . . . . . . . . . . . . . . . Qualifying widow(er). . . . . . . . . . . . . . . . . . . . . . . . Single, age 65 or over. . . . . . . . . . . . . . . . . . . . . . . Joint Return, one spouse, age 65 or over. . . . . . . . . . Joint Return, both spouses, age 65 or over . . . . . . . . Married filing separately, age 65 or over . . . . . . . . . . Head of Household, age 65 or over. . . . . . . . . . . . . . Qualifying widow(er), age 65 or over. . . . . . . . . . . . . $. 12,400 $. 24,800 $ 12,400 $ .18,650 $ .24,800 1 $ .14,050 $ .26,100 $ .27,400 $ 12,400 $ .20,300 $ .26,100 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. number; • Number of uninsured individuals in your household identified on your return; and • Your federal adjusted gross income amount from Line 1. e. You must file a Maryland return if your Maryland gross income equals or exceeds the income levels in the MINIMUM FILING LEVEL TABLE 1. Information shared with the Exchange will be used to determine eligibility for insurance affordability programs or to assist with enrollment in health coverage. If you would like more information about the health insurance affordability programs or health care coverage enrollment, visit the Exchange’s website at www.marylandhealthconnection.gov/easyenrollment/ 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 4 NAME AND ADDRESS. To get a refund of Maryland income taxes withheld, you must file a Maryland return. Print using blue or black ink. Taxpayers who are filing for refund only should complete all of the information at the top of Form 502 and the following lines: 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 filing your return. This will prevent delays in the processing of your return. 1-16 22*, 29* 35-44 46, 48 *Enter a zero unless: (i) you claim an earned income credit on your federal return, or (ii) you do not meet the minimum age requirement under the federal credit, but are otherwise eligible for the federal credit, for those without a qualifying child. Enter your current address using the spaces provided. On Current Mailing Address Line 1, enter the street number and street name of your current address. If using a PO Box address, enter “PO Box” and the PO Box number on Current Mailing Address Line 1. On Current Mailing Address Line 2, if applicable, enter the floor, suite or apartment number for your current mailing address. If using a PO Box address, leave Current Mailing Address Line 2 blank. 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 Enter City or Town, State and ZIP Code + 4. If using a foreign address, enter the city or town and state or province and ZIP Code or postal code on the Current Mailing Address Line 2. Enter the name of the country on the “City or Town” line. Leave the “State” line and “ZIP Code + 4” line blank. USE OF FEDERAL RETURN. First complete your 2020 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 www.marylandtaxes.gov for further information. All items reported on your Maryland return are subject to verification, audit and revision by the Maryland State Comptroller’s Office. 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 the SSN is not correct and legible, it will affect the processing of your return. Your name must match the name on your current social security card to ensure you get credit for your personal exemption. If not, contact SSA at 800-7721213 or visit www.ssa.gov. 3 MARYLAND HEALTHCARE COVERAGE. The Maryland General Assembly enacted Chapter 423 in the 2019 Session requiring the collection of certain information, including whether an individual is uninsured at the time the tax return is filed and whether the individual is interested in having the Maryland Health Benefit Exchange (“the Exchange”) determine whether an individual may be eligible for insurance affordability programs, such as no-cost or low-cost minimum essential health care coverage. The Exchange is the agency that regulates Maryland Health Connection. 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 Identification Number (ITIN) with the IRS and you should wait until you have received it before you file; and enter it wherever your SSN is requested on the return. Check the appropriate box on Form 502 for you and/or your spouse if you are uninsured as of the date you file your return. If you would like the Exchange to determine pre-eligibility for health insurance affordability programs for any uninsured member of your household, you must also check the box on Form 502 indicating you authorize the Comptroller to share information from your tax return with the Exchange. 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 Identification Number (ATIN) for the dependent from the IRS. For each dependent identified on Form 502B, check the appropriate box to indicate if that dependent is an uninsured individual as of the date the return is filed. 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, on one of the code number lines located to the right of the telephone number area on page 4 of the form; attach a copy of the child’s death certificate to your return. You must provide the date of birth for any uninsured individual who is interested in obtaining minimum essential health coverage. If you authorize information sharing, we will share the following information with the Exchange: • Name, SSN, and date of birth of each uninsured individual; • Your current mailing address, email address and phone 2 6 MARYLAND POLITICAL SUBDIVISION INFORMATION (REQUIRED). of Upper Marlboro do not reside in the political subdivision of the Town of Upper Marlboro. Therefore, entering the Town of Upper Marlboro on the 4 DIGIT POLITICAL SUBDIVISION CODE line for those with a ZIP Code in Upper Marlboro may not be correct. Also, some political subdivisions have similar names such as Bel Air in Allegany County and Town of Bel Air in Harford County or Town of Chevy Chase and Town of Chevy Chase View. You may contact your county seat for further information relating to the incorporated boundaries of incorporated cities, towns and taxing areas in your county. 2. If you lived within the incorporated tax boundaries of one of the areas listed under your county as found in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND, write the name of the city, town or taxing area on the MARYLAND POLITICAL SUBDIVISION line. If you did not live within the incorporated tax boundaries of one of the areas listed under your county as found in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND, write the name of your county on the MARYLAND POLITICAL SUBDIVISION line. If you lived in Baltimore City, enter “Baltimore City” on the MARYLAND POLITICAL SUBDIVISION line. For additional information on your Maryland political subdivision, contact your locality or the Maryland Department of Planning. 3. Enter your street number and street name on MARYLAND PHYSICAL ADDRESS LINE 1. DO NOT ENTER A PO BOX Fill in the lines for your Maryland physical address of the taxing area as of December 31, 2020, including political subdivision lines, based on your residence on the last day of the taxable period. Part-year residents fill in the lines for your Maryland physical address, including political subdivision lines, based on your last day of residence in Maryland in the taxable period. Military personnel who are legal residents of Maryland should fill in the lines for your Maryland physical address, including political subdivision lines, based on the Maryland physical address that is used for claiming Maryland as your Home of Record on file with the Defense Finance and Accounting Service for tax year 2020. 1. Find your 4 Digit Political Subdivision Code in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND and enter this number on the 4 DIGIT POLITICAL SUBDIVISION CODE line. When selecting the 4 Digit Political Subdivision Code, be sure that you have selected the proper political subdivision from the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND. Do not rely on your ZIP Code + 4 to identify the proper political subdivision. For example, most residents within the ZIP Code LIST OF INCORPOR ATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND Political Subdivision Code Political Subdivision Code Political Subdivision Code Political Subdivision Code Political Subdivision Code ALLEGANY COUNTY . . . . . . . .0100 Town of Barton . . . . . . 0101 Bel Air . . . . . . . . . . . . 0112 Bowling Green . . . . . . 0115 Cresaptown . . . . . . . . 0108 City of Cumberland . . . 0102 Ellerslie . . . . . . . . . . . 0113 City of Frostburg . . . . . 0103 LaVale . . . . . . . . . . . . 0110 Town of Lonaconing . . . 0104 Town of Luke . . . . . . . 0105 McCoole . . . . . . . . . . . 0114 Town of Midland . . . . . 0106 Mt. Savage . . . . . . . . . 0111 Potomac Park . . . . . . . 0109 Town of Westernport . . 0107 Town of Manchester . . . 0702 Town of Mt. Airy . . . . . 0703 Town of New Windsor . 0704 Town of Sykesville . . . . 0705 City of Taneytown . . . . 0706 Town of Union Bridge . . 0707 City of Westminster . . . 0709 GARRETT COUNTY . . 1200 Town of Accident . . . . . 1201 Town of Deer Park . . . . 1203 Town of Friendsville . . . 1204 Town of Grantsville . . . 1205 Town of Kitzmiller . . . . 1206 Town of Loch Lynn Heights . . . . . . . . . 1207 Town of Mountain Lake Park . . . . . . . . 1208 Town of Oakland . . . . . 1209 Town of Oakmont . . . . 1619 Town of Poolesville . . . 1608 City of Rockville . . . . . 1609 Town of Somerset . . . . 1610 City of Takoma Park . . . 1611 Town of Washington Grove . . . . . . . . . . 1612 ST. MARY’S COUNTY . . . . . . . . 1900 Town of Leonardtown . . 1902 ANNE ARUNDEL COUNTY . . . . . . . . 0200 City of Annapolis . . . . . 0201 Town of Highland Beach . . . . . . . . . . 0203 BALTIMORE COUNTY . . . . . . . . 0300 (No incorporated cities or towns) BALTIMORE CITY . . . 0400 CALVERT COUNTY . . . . . . . . 0500 Town of Chesapeake Beach . . . . . . . . . . 0501 Town of North Beach . . 0502 CAROLINE COUNTY . . . . . . . . 0600 Town of Denton . . . . . . 0602 Town of Federalsburg . . 0603 Town of Goldsboro . . . . 0604 Town of Greensboro . . 0605 Town of Henderson . . . 0611 Town of Hillsboro . . . . . 0606 Town of Marydel . . . . . 0607 Town of Preston . . . . . 0608 Town of Ridgely . . . . . 0609 Town of Templeville . . . 0610 CARROLL COUNTY . . . . . . . . 0700 Town of Hampstead . . . 0701 CECIL COUNTY . . . . . 0800 Town of Cecilton . . . . . 0801 Town of Charlestown . . 0802 Town of Chesapeake City . . . . . . . . . . . . 0803 Town of Elkton . . . . . . 0804 Town of North East . . . 0805 Town of Perryville . . . . 0806 Town of Port Deposit . . 0807 Town of Rising Sun . . . 0808 CHARLES COUNTY . . . . . . . .0900 Town of Indian Head . . 0901 Town of La Plata . . . . . 0902 Port Tobacco Village . . . 0903 DORCHESTER COUNTY . . . . . . . . 1000 Town of Brookview . . . 1008 City of Cambridge . . . . 1001 Town of Church Creek . 1002 Town of East New Market . . . . . . 1003 Town of Eldorado . . . . 1007 Town of Galestown . . . 1009 Town of Hurlock . . . . . 1004 Town of Secretary . . . . 1005 Town of Vienna . . . . . . 1006 FREDERICK COUNTY . . . . . . . .1100 City of Brunswick . . . . 1101 Town of Burkittsville . . 1102 Town of Emmitsburg . . 1103 City of Frederick . . . . . 1104 Town of Middletown . . . 1106 Town of Mt. Airy . . . . . 1114 Town of Myersville . . . . 1107 Town of New Market . . 1108 Village of Rosemont . . . 1113 Town of Thurmont . . . .1110 Town of Walkersville . .1111 Town of Woodsboro . . .1112 HARFORD COUNTY . . 1300 City of Aberdeen . . . . . 1301 Town of Bel Air . . . . . . 1302 City of Havre de Grace . 1303 HOWARD COUNTY . . 1400 (No incorporated cities or towns) KENT COUNTY . . . . . 1500 Town of Betterton . . . . 1501 Town of Chestertown . . 1502 Town of Galena . . . . . . 1503 Town of Millington . . . . 1504 Town of Rock Hall . . . . 1505 MONTGOMERY COUNTY . . . . . . . . 1600 Town of Barnesville . . . 1601 Town of Brookeville . . . 1602 Town of Chevy Chase . . 1615 Section 3 of the Village of Chevy Chase . . . . 1614 Section 5 of the Village of Chevy Chase . . . . 1616 Town of Chevy Chase View . . . . . . 1617 Chevy Chase Village . . 1613 Village of Drummond . . 1623 Village of Friendship Heights . . . . . . . . . 1621 City of Gaithersburg . . 1603 Town of Garrett Park . . 1604 Town of Glen Echo . . . . 1605 Town of Kensington . . . 1606 Town of Laytonsville . . 1607 Village of Martin’s Additions . . . . . . . . 1622 Village of North Chevy Chase . . . . . 1618 3 PRINCE GEORGE’S COUNTY . . . . . . . . 1700 Town of Berwyn Heights . . . . . . . . . 1701 Town of Bladensburg . . 1702 City of Bowie . . . . . . . 1704 Town of Brentwood . . . 1705 Town of Capitol Heights 1706 Town of Cheverly . . . . 1707 City of College Park . . . 1725 Town of Colmar Manor . 1708 Town of Cottage City . . 1709 City of District Heights . 1710 Town of Eagle Harbor . . 1711 Town of Edmonston . . . 1712 Town of Fairmount Heights . . . . . . . . . 1713 Town of Forest Heights 1728 City of Glenarden . . . . 1730 City of Greenbelt . . . . . 1714 City of Hyattsville . . . . 1715 Town of Landover Hills . 1726 City of Laurel . . . . . . . 1716 Town of Morningside . . 1727 City of Mt. Rainier . . . . 1717 City of New Carrollton . 1729 Town of North Brentwood . . . . . . . 1718 Town of Riverdale Park 1720 City of Seat Pleasant . . 1721 Town of University Park 1723 Town of Upper Marlboro 1724 QUEEN ANNE’S COUNTY . . . . . . . . 1800 Town of Barclay . . . . . 1805 Town of Centreville . . . 1801 Town of Church Hill . . . 1802 Town of Millington . . . . 1808 Town of Queen Anne . . 1807 Town of Queenstown . . 1803 Town of Sudlersville . . . 1804 Town of Templeville . . . 1806 SOMERSET COUNTY . . . . . . . . 2000 City of Crisfield . . . . . . 2001 Town of Princess Anne . 2002 TALBOT COUNTY . . . . . . . . 2100 Town of Easton . . . . . . 2101 Town of Oxford . . . . . . 2102 Town of Queen Anne . . 2105 Town of St. Michaels . . 2103 Town of Trappe . . . . . . 2104 WASHINGTON COUNTY . . . . . . . . 2200 Town of Boonsboro . . . 2201 Town of Clearspring . . . 2202 Town of Funkstown . . . 2203 City of Hagerstown . . . 2204 Town of Hancock . . . . . 2205 Town of Keedysville . . . 2206 Town of Sharpsburg . . . 2207 Town of Smithsburg . . . 2208 Town of Williamsport . . 2209 WICOMICO COUNTY . . . . . . . . 2300 Town of Delmar . . . . . . 2301 City of Fruitland . . . . . 2308 Town of Hebron . . . . . . 2302 Town of Mardela Springs . . . . . . . . . 2303 Town of Pittsville . . . . . 2307 City of Salisbury . . . . . 2304 Town of Sharptown . . . 2305 Town of Willards . . . . . 2306 WORCESTER COUNTY . . . . . . . . . 2400 Town of Berlin . . . . . . . 2401 Town of Ocean City . . . 2402 Pocomoke City . . . . . . 2403 Town of Snow Hill . . . . 2404 NUMBER. 4. If applicable, enter the floor, suite or apartment number on MARYLAND PHYSICAL ADDRESS LINE 2. DO NOT ENTER A PO BOX NUMBER. 5. Enter the city or town in which you resided on the CITY line. 6. Enter the ZIP Code + 4 in which you resided on the ZIP Code + 4 line. 7. Enter the name of your county on the MARYLAND COUNTY line. If you lived in Baltimore City, leave the MARYLAND COUNTY line blank. 7, follow the instructions below. If you and your spouse file a joint federal return but are filing separate Maryland returns according to Instruction 7, you should report the income you would have reported had you filed 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 exclusively” to 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. 7 FILING STATUS. “Attributable exclusively” means that the individual is solely responsible for the payment of an expense claimed as an itemized deduction, including compliance with a valid court order or separation agreement; or the individual jointly responsible for the payment of an expense claimed as an itemized deduction can demonstrate payment of the full amount of the deduction with funds that are not attributable in whole or in part, to the other jointly responsible individual. Use the FILING STATUS chart below to determine your filing status. Check the correct FILING STATUS box on the return. 8 SPECIAL INSTRUCTIONS FOR MARRIED PERSONS FILING SEPARATELY. MARRIED PERSONS (Married on the last day of the tax year.) SINGLE PERSON (Single on the last day of the tax year.) If you and your spouse file a joint federal return but are filing separate Maryland returns according to Instruction If both spouses choose to itemize on their separate Maryland If you are: Check the box for: Additional Information 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 $12,400 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. 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. If your spouse does not have and is not required to have a Social Security Number or ITIN, enter “999-00-9999” in the space for your spouse’s Social Security Number (for the purpose of this form ONLY). 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 All other married couples who filed joint federal returns 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. Joint return Filing Status 2 If your spouse does not have and is not required to have a Social Security Number or ITIN, enter “999-00-9999” in the space for your spouse’s Social Security Number (for the purpose of this form ONLY). EXEMPTION AMOUNT CHART (10A) The personal exemption is $3,200. This exemption is reduced once the taxpayer’s federal adjusted gross income exceeds $100,000 ($150,000 if filing 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 filing 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 ADJUSTED GROSS INCOME is Single or Married Filing Separately Joint, Head of Household or Qualifying Widow(er) Dependent Taxpayer (eligible to be claimed on another taxpayer’s return) Each Exemption is Each Exemption is Each Exemption is $100,000 or less Over But not over $100,000 $125,000 $125,000 $150,000 $150,000 $175,000 $175,000 $200,000 In excess of $200,000 $3,200 $3,200 $0 $1,600 $800 $0 $0 $0 $3,200 $3,200 $1,600 $800 $0 $0 $0 $0 $0 $0 Total the exemption amount on the front of Form 502 to determine the total exemption allowance to subtract on line 19 of Form 502. 4 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 26k. 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. 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. Line 1c. Enter on line 1c the amount of capital gains and losses reported as taxable income on Line 7 of the federal Form 1040. Line 1d. Enter on line 1d the total amount of pensions, IRAs and annuities reported as income on 4b and 5b of your federal Form 1040. As required by House Bill 1148 (Chapter 648) of the 2016 Session of the General Assembly, taxpayers with an entry on line 1d must complete and attach Form 502R. See Form 502R for additional information. If you choose to use the standard deduction method, use STANDARD 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. A dependent may not be claimed twice. The total number of dependents claimed may not exceed the overall number of dependents. Line 1e. Place a “Y” in the box if the amount of your investment income is more than $3,650. You DO NOT qualify for the earned income tax credit. Investment income generally includes, but is not limited to, interest, dividends, capital gains, and other types of distributions including mutual fund distributions. 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. 12 9 PART-YEAR RESIDENTS. 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: If you began or ended legal residence in Maryland in 2020 see Instruction 26. 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. Military taxpayers. If you have non-Maryland military income, see Administrative Release 1. 10 EXEMPTIONS. 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 (Box 14). The tax on this portion of your wages is deferred for federal but not for state purposes. Determine what exemptions you are entitled to and complete the EXEMPTIONS area on Form 502. Form 502B must be completed and attached to Form 502 if you are claiming one or more dependents. EXEMPTIONS ALLOWED 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 file federal Form 4972. You are entitled to claim qualified exemptions on your Maryland return. The amount of your Maryland exemption may be limited by the amount of your federal adjusted gross income. See Exemption Amount Chart (10A). You and your spouse are permitted to claim additional 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 (4) and (5) of Form 502B for each of your dependents who are age 65 or over. Use the LUMP SUM DISTRIBUTION WORKSHEET (12A) to determine the amount of your addition. 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) . . . . . . $______________ 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. The number of exemptions for Part C is from Total Dependent Exemptions, Line 3 of Form 502B. 2. 40% of capital gain portion of distribution from Form 1099R. . . . . . . . . . . . . . . . . . . . . . . . . . . . $______________ 3. Add lines 1 and 2.. . . . . . . . . . . . . . . . . . . . . . . . $______________ 4. Enter minimum distribution allowance from federal Form 4972 . . . . . . . . . . . . . . . . . . . . . . . $______________ PART-YEAR RESIDENTS AND MILITARY 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 . . . . . . . . . . . . . . . . . . . . . . . . . $______________ You must prorate your exemptions based on the percentage of income subject to Maryland tax. See Instruction 26 and Administrative Release 1. Note: If you were able to deduct the death benefit exclusion on federal Form 4972, allocate that exclusion between the ordinary and capital gain portions of your distribution in the same ratio before completing this schedule. 11 INCOME. Line 1. Copy the figure for federal adjusted gross income from line 11 of your federal form 1040/1040SR onto line 1 of Form 502. 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: Line 1a. Copy the total of your wages, salaries and tips from line 1 of your federal Form 1040 onto line 1a of Form 502. If you and your spouse file a joint federal return but are filing separate Maryland returns, see Instruction 8. CODE LETTER a. Part-year residents: losses or adjustments to federal income that were realized or paid when you were a nonresident of Maryland. Line 1b. Enter your earned income used to calculate your federal earned income credit (EIC), Maryland Earned Income Credit, or poverty level credit (PLC). Earned income b. Net additions to income from pass-through entities not attributable to decoupling. 5 c. Net additions to income from a trust as reported by the fiduciary. 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 qualified higher education expenses, and any refunds of contributions made under the Maryland College Investment Plan, to the extent the contributions were subtracted from federal adjusted gross income and were not used for qualified higher education expenses. See Administrative Release 32. d. S corporation taxes included on lines 13 and 14 of Form 502CR, Part A, Tax Credits for Income Taxes Paid to Other States and Localities. (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, 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 Endowments of Maryland Historically Black Colleges and Universities Tax Credit. In addition, include any amount deducted as a donation to the extent that the amount of the donation is included in an application for the Endow Maryland Tax Credit and/or Endowments of Maryland Historically Black Colleges and Universities Tax Credit on Form 500CR or 502CR. f. l. m. Net addition modification to Maryland taxable income when the federal special 2-year carryback (farming loss only) 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. n. Amount deducted on your federal income tax return for domestic production activities. Oil percentage depletion allowance claimed under IRC Section 613. 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. 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 benefit. See Administrative Release 18 at www.marylandtaxes. gov. i. j. Net addition modification 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. p. Any refunds received by an ABLE account contributor under the Maryland ABLE Program or any distribution received by an ABLE account holder, to the extent the distribution was not used for the benefit of the designated beneficiary for qualified disability expense, that were subtracted from federal adjusted gross income. Taxable tax preference items from line 5 of Form 502TP. The items of tax preference are defined in IRC Section 57. If the total of your tax preference items is more than $10,000 ($20,000 for married taxpayers filing joint returns) you must complete and attach Form 502TP, whether or not you are required to file federal Form 6251 (Alternative Minimum Tax) with your federal Form 1040. q. If you sold or exchanged a property for which you claimed a subtraction modification under Senate Bill 367 (Chapter 231, Acts of 2017) or Senate Bill 580/House Bill 600 (Chapter 544 and Chapter 545, Acts of 2012), enter the amount of the difference between your federal adjusted gross income as reportable under the federal Mortgage Forgiveness Debt Relief Act of 2007 and your federal adjusted gross income as claimed in the taxable year. 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. PENSION EXCLUSION COMPUTATION WORKSHEET (13A) Review carefully the age and disability requirements in the instructions before completing this worksheet. Use the separate RETIRED CORRECTIONAL OFFICERS, LAW ENFORCEMENT OFFICER, OR FIRE, RESCUE, OR EMERGENCY SERVICES PERSONNEL PENSION EXCLUSION COMPUTATION WORKSHEET (13E) if applicable. You Spouse 1. Qualifying pension and retirement annuity included in your federal adjusted gross income (Do not include Social Security or Railroad Retirement). . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. Maximum allowable exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33,100 $33,100 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 10a, Form 502.) If you and your spouse both qualify for the pension exclusion, combine your allowable exclusions and enter the total amount on line 10a, Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 qualifying 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 $33,100. 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. If your total Social Security and/or Railroad Retirement income is greater than the Maximum Pension Exclusion $33,100, the pension exclusion will be zero (0). 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. 6 cd. Net addition modification to Maryland taxable income resulting from the federal deferral of income arising from business indebtedness discharged by reacquisition of a debt instrument. See Form 500DM and Administrative Release 38. 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. Note that, in either case, the proration factor may not exceed 1. dm. Net addition modification from multiple decoupling provisions. See the table at the bottom of Form 500DM for
Resident Booklet 2020
More about the Maryland Resident Booklet Individual Income Tax Tax Return TY 2020
Forms and instructions for or filing personal state and local income taxes for full or part-year Maryland residents Resident Booklet requires you to list multiple forms of income, such as wages, interest, or alimony .
We last updated the Income Tax Forms & Instructions Booklet in February 2021, so this is the latest version of Resident Booklet, fully updated for tax year 2020. You can download or print current or past-year PDFs of Resident Booklet directly from TaxFormFinder. You can print other Maryland tax forms here.
Related Maryland Individual Income Tax Forms:
|Form Code||Form Name|
|Nonresident Booklet||Maryland Tax Forms & Instruction Booklet for Nonresidents|
Maryland usually releases forms for the current tax year between January and April. We last updated Maryland Resident Booklet from the Comptroller of Maryland in February 2021.
Resident Booklet is a Maryland Individual Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Individual Income Tax
The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.
Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!
Historical Past-Year Versions of Maryland Resident Booklet
We have a total of four past-year versions of Resident Booklet in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Resident Booklet 2020
2019 Maryland Resident Income Tax Booklet
While we do our best to keep our list of Maryland Income Tax Forms up to date and complete, we cannot be held liable for errors or omissions. Is the form on this page out-of-date or not working? Please let us know and we will fix it ASAP.