Follow the links to sort out all the details quickly and make filing your tax return painless!
There are several ways you can file your personal or business income tax returns on paper or electronically. Please review the links at the bottom of the page, and choose the filing method that best fits your needs.
You can file both your Maryland and federal tax returns online using approved software on your personal computer. To use this method, you'll need to know the correct county abbreviation for the Maryland county in which you live. You may need to enter the correct subdivision code for the city in Maryland in which you live.
You can choose among a host of professional tax preparers in Maryland who can file your return electronically for you. While we cannot endorse any specific professional, we offer a list of e-file providers for individuals and businesses for your convenience.
You may qualify to electronically file your federal return for free by using IRS Free File Some of the companies participating in the IRS Free File service will file your Maryland return electronically for free as well. No matter what company you select, you can always return to file your Maryland tax return for free online, using iFile or the Maryland Tax Connect Portal. Keep in mind that your Maryland return begins with your federal adjusted gross income, so you must prepare your federal return first before you can prepare your Maryland return.
Do I have to file a Maryland Income Tax Return?Generally, you are required to file a Maryland income tax return if:
Even if you are not required to file a federal return, you may be required to file a Maryland return if your Maryland addition modifications added to your gross income exceed the filing requirement for your filing status. Dependent taxpayers must take into account both their additions to and subtractions from income to determine their gross income.
If you are a senior citizen, see also Filing Requirements for Seniors.
For more information, see the instructions in the Maryland resident tax booklet and nonresident tax booklet.
Single (including dependent taxpayers)
Head of Household
Married Filing Jointly
Married Filing Separately
Qualifying Widow(er)
File for free in personYou may submit your completed paper tax form, or obtain assistance in person at any of our local branch offices. Assistance is available by appointment only 8:30 a.m. - 4:30 p.m., Monday through Friday.
Filing DeadlinesYour income tax return is due April 15, 2024.
If you are a fiscal year taxpayer, complete the fiscal year Form 502, and print "FY" in bold letters in the upper left hand corner of the form. Whenever the term "tax year" appears in the instructions, fiscal year taxpayers should understand the term to mean "fiscal year." Use the current year tax forms for fiscal years which begin during the current calendar year (i.e. use 2019 tax forms for calendar year 2019). Fiscal year returns are due on the 15th day of the 4th month following the close of the fiscal year.
If any due date falls on a Saturday, Sunday or legal holiday, the return must be filed by the next business day.
The fastest way to file your return and receive your refund is to file electronically and request direct deposit. If you request direct deposit on your electronic return, your electronic return will be processed within 72 hours (with exceptions) and refunds will be issued within 5-7 business days. To pay your taxes, you may request electronic funds withdrawal (direct debit) payments on your electronic return.
If you both file and pay electronically, your return is due April 15th. However, you will have until April 30th to make your electronic payment. Note: An online payment where the bank mails the Comptroller of Maryland a paper check is not considered an electronic payment. You may file your return electronically through your personal computer using our free online service. Please do not send a paper copy of the return if you choose to file electronically.
Extensions AmendmentsYou must file an amended return to make certain changes to your original return. These include changes in income, filing status, amount of deductions, the number of exemptions, and the amount of additions and subtractions to income. Note: Changes made as part of an amended return are subject to audit for up to three years from the date the amended return is filed. Use Form 502X to file an amended return and include a copy of your federal return. For more information on filing an amended return please see Instruction 28 in the Maryland resident tax booklet.
Determine Your Filing StatusGenerally, you are required to use the same filing status on your Maryland income tax return as used on your federal income tax return or the filing status that you would have used if required to file a federal income tax return.
This applies whether you are a resident COMAR 03.04.02.02 or nonresident COMAR 03.04.02.03 of the State of Maryland.
Maryland has six filing statuses based on the filing status used on your federal income tax return.
SINGLE PERSON (single on the last day of the tax year)
| If you are: | Check the box for: | Additional Information |
|---|---|---|
| Any person who can be claimed as a dependent on his/her parent's (or another person's) federal return | Dependent taxpayer - Filing Status 6 | Single Dependent taxpayers, regardless of whether income was earned or unearned, are not required to file a Maryland income tax return unless their gross income is $12,550 or more. |
| Any person who filed as head of household on his/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. |
Joint return - Filing Status 2 OR
Married filing separately - Filing Status 3
Determining Residency StatusResident -Your permanent home is or was in Maryland (the law refers to this as your domicile). OR your permanent home is outside of Maryland, but you maintained a place of abode (that is, 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.
Nonresident - Your permanent home (domicile) is in a state other than Maryland, unless you are a statutory resident.
Statutory resident - You maintain and occupy a place of abode (that is a place to live) for more than 6 months of the tax year in Maryland.
Part-Year Residents - If you either established or abandoned Maryland residency during the calendar year, you are considered a part-year resident.
For further information on how to file, see the links below.
If You are a Maryland Resident
If you were domiciled in Maryland on the last day of the taxable year, or you maintained a place of abode (a place to live) in Maryland, and were physically present in Maryland for more than six months of the tax year, then you are a legal resident.
If you are a Maryland resident, you are required to file a Maryland income tax return if you are required to file a federal income tax return, and your gross income equals or exceeds the level for your filing status in Filing Requirements see above and in Instruction 1 of the Maryland resident tax booklet. Dependent taxpayers must take into account both their additions to and subtractions from income to determine their gross income. See also, If You Work in Another State below.
Even if you are not required to file a federal return, you may be required to file a Maryland return if your Maryland addition modifications added to your gross income exceed the filing requirement for your filing status.
If you are a Maryland resident who works in another stateIf you work in Washington, D.C., Pennsylvania, Virginia and West Virginia
If you live in Maryland and work in Washington, D.C., Pennsylvania, Virginia or West Virginia you should file your state income tax return with Maryland.
If you commute to work in one of the states listed above, and your employer withholds taxes for that jurisdiction, you can file the appropriate form with that locality to obtain a refund.
If you work in any other state on a regular basis, it's a good idea to contact that state's taxing authority to determine your taxable status from their perspective.
If you have income that is taxed in another state and/or a locality in another state, see Maryland Form 502CR to determine if you are eligible for a tax credit. Be sure to include your completed Form 502CR with your Maryland return, along with a copy of the return you filed with the other state and/or a locality in another state.
Maryland residents who work in Delaware must file tax returns with both states. To avoid dual taxation, you can get a credit for taxes paid to Delaware and/or a locality in Delaware by completing Maryland Form 502CR and filing it with your Maryland income tax return. Be sure to include a copy of your Delaware return and/or return of the locality in Delaware.
If Lived in Maryland Only Part of the YearIf you either established or abandoned Maryland residency during the calendar year, you must file as a part-year resident, using Form 502. You may also be required to file a return with your other state of residence.
Filing a part-year return in your first year of residency may help you avoid receiving a notice asking why you did not file with Maryland the previous year.
Instruction 26 in the Maryland resident tax booklet outlines the following steps for completing your part-year tax return correctly:
Part-year residents with pensions
Part-year residents with pensions should complete the pension exclusion worksheet using total taxable pension and total Social Security and Railroad Retirement benefits 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 receiving your pension during the tax year you became a Maryland resident, use a proration factor of the number of months you were a resident divided by the number of months the pension was received.
If You are a Nonresident FilerIf you are a nonresident of Maryland, you are required to file Form 505 (Maryland Nonresident Income Tax Return) and Form 505NR (Maryland Nonresident Income Tax Calculation) if you have income derived from:
You are not required to file as a nonresident if:
Nonresidents who work in Maryland or derive income from a Maryland source are subject to the appropriate Maryland income tax rate for your income level, as well as a special nonresident tax rate of 1.75%. By law, the nonresident tax rate must equal the lowest local income tax rate paid by Maryland residents (currently 1.75%) combined with the top state tax rate.
You will use your total income (with certain modifications) to compute the tax rate to be used on Form 505. You will then use Form 505NR to compute your Maryland taxable net income with your subtractions for non-Maryland income. This Maryland taxable net income will be used as the numerator of a nonresident factor. Your Maryland income without allowing you the non-Maryland subtractions will be the denominator. This nonresident factor applied to the tax that was calculated on your total income arrives at the Maryland tax. The special nonresident tax is applied to your Maryland net taxable income as calculated on Form 505NR. For more information, see the instructions in the Maryland nonresident tax booklet.
You can calculate your nonresident tax due using our estimated nonresident tax calculator.
Nonresident taxpayers may either use Maryland's standard deduction or itemize deductions. You may elect to use the standard deduction whether or not you itemized deductions on your federal income tax return. You may itemize deductions on your Maryland return only if you have itemized them on your federal return. Deductions and exemptions must be apportioned using the ratio of Maryland income to federal adjusted gross income.
If you are a nonresident and amending your Maryland income tax returns, you should obtain a Form 505X and a nonresident tax booklet for the year you wish to amend so that you will have the proper instructions and rates. Exemptions, deductions and certain credits must be prorated using the Maryland income factor. Attach revised Forms 505 and 505NR to your amended return.
If you are a nonresident who owned and sold or transferred real property and associated tangible personal property in Maryland, you must make a tax withholding payment to the local clerk of the circuit court or the State Department of Assessments and Taxation (SDAT). The payment must be made before the deed or other instrument of transfer is recorded with the court clerk or filed with SDAT. For more information, see Sales of Real Property by Nonresidents (below).
If You Are a Nonresident Working in MarylandIf you are a nonresident who works in Maryland and/or derives other income from a Maryland source, you are subject to Maryland's income tax rates as well as the special nonresident tax rate of 1.75%. For more information about the filing requirements for nonresidents, see the instructions in the Maryland nonresident tax booklet.
If you are a nonresident who works in Maryland, you must also complete Form MW507 (Employee's Maryland Withholding Exemption Certificate) for your payroll department to determine the proper number of exemptions in calculating your income tax withholding.
If you work in Maryland but reside in a reciprocal tax state (Pennsylvania, Virginia, West Virginia or Washington, D.C.), and your only income from a Maryland source is wages, you can be exempt from Maryland income tax and Maryland withholding tax on those wages. Follow the instructions for line 4 of the MW507 form.
If you work in Maryland but reside in Delaware, you must file Form 505 (Maryland Nonresident Income Tax Return) and Form 505NR (Maryland Nonresident Income Tax Calculation). However, if you reside within the city limits of Wilmington, you must file Form 515 to report your taxable wage income.
If you work in Maryland but reside in a local jurisdiction of Alabama, Delaware, Indiana, Kentucky, Michigan, Missouri, New York, Ohio, and Pennsylvania that imposes a local income or earnings tax on Maryland residents, you must file Form 515. To verify local tax laws, contact your local government in the jurisdiction in which you reside.
If Maryland tax was withheld from your income in error you must file to obtain a refund. Complete all of the information at the top of the Form 505 including the filing status, residence information and exemption areas. Check the box provided to the right of the residence information for you to indicate your withholding was withheld in error. See instruction 4 of the nonresident booklet.
If you sell or exchange real property that you own in Maryland, tax must be withheld at the time of sale unless a specific exemption applies. The tax will be withheld based on the total payment from the sale of that property and associated tangible personal property. The person responsible for recording the deed must pay the withholding tax to the Clerk of the Court or the State Department of Assessments and Taxation (SDAT) at the time of recordation. The payment must be made before the deed or other instrument of transfer is recorded with the court, or filed with the SDAT. For more information, see Sales of Real Property by Nonresidents (below).
Sales of Real Property by NonresidentsIf you are a nonresident who owns and is selling or transferring real property and associated tangible personal property in Maryland, you must make a tax withholding payment to the local Clerk of the Circuit Court or the Maryland Department of Assessments and Taxation (SDAT). The payment must be made before the deed or other instrument of transfer is recorded with the court clerk or filed with SDAT.
Generally, the person responsible for your closing, a title company for example, is responsible for ensuring that sufficient funds are withheld at settlement and for paying the amount of withholding tax due to the Clerk or SDAT when the deed or other instrument of transfer is presented for recordation.
For a nonresident individual, the payment is 8% of the total property sale payment made to the individual. A nonresident entity must make an 8.25% payment.
Under this provision, a nonresident entity is an entity that is:
In the case of multiple owners, withholding is required from each of the nonresident owners based on the percentage of the total payment that represents each nonresident's ownership percentage.
At settlement, you must complete Form MW506NRS, Return of Income Tax Withholding for Nonresident Sale of Real Property. The settlement agent must then present Copies A and B of Form MW506NRS to the clerk or SDAT, along with payment.
In addition to filing Form MW506NRS with a tax withholding payment, you are still required to file an end-of-the-year income tax return with Maryland for the year in which the sale occurred.
Nonresident Aliens Filing Federal Form 1040NRIf you are required to file federal Form 1040NR (or 1040-NR-EZ) to the IRS as a nonresident alien, how you file your Maryland income tax return depends on whether you are a legal resident of Maryland or a nonresident.
If you were domiciled in Maryland on the last day of the tax year, or you maintained a place to live in Maryland and were physically present in Maryland for more than six months (183 days) of the tax year, then you are a legal Maryland resident. In that case, you must file a Maryland resident tax return for the full tax year, using Form 502.
If you do not meet the above definition, you are not a resident of Maryland. Form 505 and You will need to file a nonresident income tax return to Maryland, using Form 505NR if you have income derived from:
Filing Status
If you must file a Maryland tax return, you cannot use the joint filing status or head of household filing status if you are a nonresident alien filing a federal 1040NR.
Income
You must report the same income on your Maryland return as you reported on Form 1040NR. You must enter on line 1 of your Maryland return the federal adjusted gross income amount from your 1040NR form.
Additions and Subtractions
You must list any additions or subtractions on Maryland forms 502 and 505 that are required under Maryland tax law and federal tax law.
Itemized Deductions
You should report the same itemized deductions that you claimed on your federal 1040NR - with one exception: state and local income taxes. You must subtract from your total deductions on your Maryland return any state or local income taxes that you included as an itemized deduction. See Instruction 14 in the resident tax booklet or Instruction 16 in the nonresident tax booklet.
Even though you may be required to claim itemized deductions on your federal 1040NR, you have the option to claim the Maryland standard deduction or itemized deduction method on the Maryland return.
Personal Exemptions
You may claim the same number of exemptions on your Maryland return that were allowed on the federal 1040NR.
Age and Blindness
If you are 65 years or older, or are legally blind, you may claim an additional $1,000 exemption for age or blindness on the Maryland return.
Spouse
Generally, nonresident aliens who are nationals of the United States or residents of Mexico or Canada may claim a personal exemption for their spouse if the spouse had no gross income for U.S. tax purposes and cannot be claimed as a dependent on another taxpayers return.
Nonresident aliens who are residents of the Republic of Korea (South Korea) must meet an additional requirement to claim their spouse as an exemption: the spouse must have lived with the taxpayer in the United States at some time during the tax year. Students and business apprentices who are residents of India may also claim their spouse under certain circumstances (See IRS Publication 519) .
If your spouse meets the criteria noted above, you can claim an exemption for your spouse in the Exemptions section of the Maryland return.
Dependents
You may not claim any other dependents unless the dependents are residents of the United States, Canada, or Mexico. The dependents are entitled to an additional exemption for age if they are 65 years of age or older.
Only U.S. nationals and residents of Canada, Mexico, and the Republic of Korea (South Korea), may claim exemptions for their dependents. If you were a U.S. national (American Samoan or a Northern Mariana Islander who chose to be a U.S. national) or a resident of Canada or Mexico, you can claim exemptions for your children and other dependents on the same terms as U.S. citizens . See IRS Publication 501 for more details.
Residents of Other Countries
You may not claim any exemptions for a spouse or dependents if you are a nonresident alien from any other country and are required to file a federal Form 1040NR.
Prorating Exemptions
If you are a nonresident for Maryland tax purposes, you must prorate your exemptions and deductions following the instructions in the nonresident tax booklet.
Earned Income Tax Credit
You cannot claim an earned income tax credit if you are a nonresident alien required to file a federal 1040NR. You must qualify and elect to be taxed as a resident alien with IRS on your worldwide income in order to claim the earned income tax credit.
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 chart below.
The personal exemption is $3,200. This exemption is reduced once your federal adjusted gross income exceeds $100,000 ($150,000 if filing Joint, Head of Household, or Qualifying Widow(er) with Dependent Child).
Personal Exemptions Chart
In excess of $200,000
You must complete the Exemptions section of the return with Form 502B if completing the Form 502. 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.
Age and Blindness
In addition to the exemptions allowed on your federal return, you and your spouse may claim an additional $1,000 exemption on the Maryland return for being 65 years of age or older or blind. 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 in the Exemptions section for each of your dependents who are age 65 or over. Make sure you check both boxes (4) and (5) of the Dependent Form 502B for each of your dependents who are age 65 or over.
502B - Dependents Form
Enter the names, Social Security numbers and relationships for all dependents on Form 502B. The total dependent exemptions should be carried over to part C of the Exemptions section on Form 502.
If you are a part-year resident or a member of the military, you must prorate your exemptions based on the percentage of your income subject to Maryland tax. See Instructions 26 and 29 in the Maryland tax booklet.
Nonresidents
If you and your spouse file a joint federal return but choose to file separate Maryland returns because one of you is a nonresident, each spouse's personal exemption amounts must be claimed separately as well.
Determine Tax Credits and DeductionsYou may be eligible to claim some valuable personal income tax credits available on your Maryland tax return.
The following list contains general information about some of the most commonly used credits. You may want to consult with a tax professional to review specific requirements. Some of these credits contain carryover or recapture provisions and, in some cases, you may have to seek certification from another state agency. For more information, see Form 502CR
Earned Income Tax Credit (EITC)
The Earned Income Tax Credit, also known as Earned Income Credit (EIC), is a benefit for working people with low to moderate income. If you qualify for the federal earned income tax credit and claim it on your federal return, you may be entitled to a Maryland earned income tax credit on the state return equal to 50% of the federal tax credit. The Maryland earned income tax credit (EITC) will either reduce or eliminate the amount of the state and local income tax that you owe.
Detailed EITC guidance for Tax Year 2023, including annual income thresholds can be found here. If you are not certain if you qualify, both the Comptroller of Maryland and the Internal Revenue Service have electronic assistants that can help. By answering questions and providing basic income information, taxpayers can use the IRS EITC Assistant to:
Use the Comptroller of Maryland EITC Assistant to determine if you are eligible for the state Earned Income Tax Credit. The Assistant is available in English or en Español.
The IRS has the EITC Assistant in English version and a Versión en Español.
Clean Energy Tax Incentives for Maryland Residents Senior Tax CreditBeginning in 2022, senior citizens are eligible for a new tax credit, among other benefits they can take advantage of. We have created a convenient tax tip detailing these opportunities. Additionally, seniors should consult our filing guidelines for seniors containing pertinent information and answers to your most frequently asked questions.
Aquaculture Oyster Float CreditA credit is allowed for cost of new aquaculture oyster floats that are designed to grow oysters at or under an individual homeowner's pier. The devices must be buoyant and assist in the growth of oysters for the width of the pier. The credit amount is limited to the lesser of the individual's state tax liability for that year or the maximum allowable credit of $500.
If the credit is more than the tax liability, the unused credit may not be carried forward to another tax year.
First-Time Homebuyer Savings AccountThe First-Time Homebuyer Savings Account Subtraction may be claimed on Form 502SU by a Maryland resident who has not owned or purchased, either individually or jointly, a home in the State in the last 7 years and who has contributed money to a first-time homebuyer savings account.
For a period not to exceed 10 years, an account holder may claim a subtraction for up to $5,000 of the amount contributed by the account holder to their account during the taxable year for which the subtraction is claimed plus earnings for the taxable year, up to $50,000 of earnings accrued over the 10-year period. Funds must be used within 15 years following the date the account was established. Any funds in the account for which a subtraction was claimed and not expended on eligible costs by December 31 of the last year following the 15-year period is subject to taxation as ordinary income. Eligible costs are the down payment and allowable closing costs for the purchase of a home in the State by an account holder.
Any account established with a financial institution can qualify as a "first-time homebuyer savings account" so long as the account is established for the sole purpose of paying or reimbursing eligible costs for the purchase of a home by the account holder in the state of Maryland. An account holder may not be the account holder of more than one account.
If the account holder withdraws any funds from the account for which a subtraction has been claimed for a purpose other than eligible costs for the purchase of a home, the funds are considered taxable ordinary income for the tax year in which they were withdrawn and the account holder must pay a penalty equal to 10% of the amount withdrawn. (For information on how to report this addition and penalty, refer to Instructions 12 and 22 in the Maryland Resident tax booklet.) There are three exceptions to this: rollover, bankruptcy, and administrative costs charged by the financial institution.
An account holder claiming a subtraction must file a list of transactions for the account during the taxable year with the income tax return on which the subtraction is claimed, and each subsequent year, whether or not the subtraction is claimed in each subsequent year, until the funds are used for eligible costs. Each spouse on a joint return who is the sole account holder of a first-time homebuyer savings account may claim up to the full amount of the subtraction. The amount claimed by each spouse is limited to their contributions to the account on which they are the account holder and earnings on the account on which they are the account holder.
On withdrawal of funds from the account to purchase a home, an account holder must submit to the Comptroller with their income tax return copies of statements provided by the account holder’s financial institution and the settlement statement related to the purchase of the home showing the eligible costs toward which the account funds were applied and a statement of the amount of funds remaining in the account, if any.
Preservation and Conservation Easement CreditIf you donated an easement to the Maryland Environmental Trust, the Maryland Agricultural Land Preservation Foundation or the Maryland Department of Natural Resources to preserve open space, natural resources, agriculture, forest land, watersheds, significant ecosystems, view sheds or historic properties, you may be eligible for a tax credit.
You may be eligible for the credit if:
The credit is equal to the difference in the fair market values of the property reduced by payments received for the easement. The credit amount is limited to the lesser of the individual's state tax liability for that year of the maximum allowable credit of $5,000, per owner, who qualifies to claim the credit. The credit can be claimed on Maryland forms Form 502, Form 504, Form 505 or Form 515.
If the property is owned jointly by more than one individual such as a husband and wife, each individual owner is entitled to the credit based on their percentage of ownership. Individual members of a pass-through entity are not eligible for this credit.
In the case of a joint return, each spouse must calculate their own state tax liability for limitation purposes. Use the rules for filing separate returns in Instruction 8 of the Maryland resident tax booklet. In the case of a fiduciary return, the fiduciary will complete the column for Taxpayer B only.
If the individual's allowable credit amount exceeds the maximum of $5,000, the excess may be carried forward up to 15 years or until fully used. Complete lines 1-7 of Part F on Form 502CR. If you itemize deductions, see Instruction 14 in the Maryland resident tax booklet.
Heritage Structure Rehabilitation Tax CreditA credit may be allowed for substantial expenditures incurred in a 24-month period to rehabilitate a certified heritage structure located in Maryland. The credit is available for owner-occupied residential property, as well as income-producing property.
Quality Teacher Incentive CreditIf you are a qualified teacher, you may be able to claim a credit against your State tax liability for tuition paid to take graduate-level courses required to maintain certification. This credit applies to individuals who:
Note: Qualified juvenile facilities are: the Alfred D. Noyes Children's Center; the Baltimore City Juvenile Justice Center; the Charles H. Hickey, Jr. School; the Cheltenham Youth Facility; the J. DeWeese Carter Center; the Lower Eastern Shore Children's Center; the Thomas J.S. Waxter Children's Center; the Victor Cullen Center; the Western Maryland's Children's Center; and the youth centers.
Only the unreimbursed portion qualified for the credit. The courses taken must be required to maintain certification and the cost of the courses must exceed any amount reimbursed by the county or Baltimore City.
The maximum amount of credit allowed is $1,500 for each qualifying individual. The credit is limited to the amount paid, less any reimbursement, up to the maximum allowed credit. See Page 3 of the Instructions for Form 502CR to learn how to calculate the credit. Each spouse that qualifies may claim this credit. Complete a separate column on Form 502CR Part C for each spouse.
If the credit exceeds your tax liability, the unused credit may not be carried forward to any other tax year.
Child and Dependent Care Tax CreditIf you were eligible for a Child and Dependent Care Credit on your federal income tax return, Form 1040 for the tax year, you may be entitled to a credit on your Maryland state income tax return. The credit starts at 32% of the federal credit allowed, but is phased out for taxpayers with federal adjusted gross incomes above $103,650* ($161,100* for individuals who are married filing joint income tax returns). This credit is in addition to the subtraction modification available on the Maryland return for child and dependent care expenses.(See above)
You can use the tables below to determine the percentage of the federal credit that can be claimed on your Maryland return:
If the credit is more than your tax liability, and your federal adjusted gross income does not exceed $55,750 ($83,650 for individuals who are married filing jointly), you may be entitled to claim a refund of any excess credit. Refer to Worksheet 21B in the instructions for Form 502CR. Enter any refundable credit in Part CC of Form 502CR.
| Individual taxpayer, if your federal adjusted gross income is: | Decimal Amount (multiply by federal credit) | Married Taxpayer, if your federal adjusted gross income is: | ||
|---|---|---|---|---|
| At least | But less than | Decimal Amount | At least | But less than |
| >$0 | $30,001 | 0.3200 | $0 | $50,001 |
| $30,001 | $32,001 | 0.3168 | $50,001 | $53,001 |
| $32,001 | $34,001 | 0.3136 | $53,001 | $56,001 |
| $34,001 | $36,001 | 0.3104 | $56,001 | $59,001 |
| $36,001 | $38,001 | 0.3072 | $59,001 | $62,001 |
| $38,001 | $40,001 | 0.3040 | $62,001 | $65,001 |
| $40,001 | $42,001 | 0.3008 | $65,001 | $68,001 |
| $42,001 | $44,001 | 0.2976 | $68,001 | $71,001 |
| $44,001 | $46,001 | 0.2944 | $71,001 | $74,001 |
| $46,001 | $48,001 | 0.2912 | $74,001 | $77,001 |
| $48,001 | $50,001 | 0.2880 | $77,001 | $80,001 |
| $50,001 | $52,001 | 0.2848 | $80,001 | $83,001 |
| $52,001 | $54,001 | 0.2816 | $83,001 | $86,001 |
| $54,001 | $56,001 | 0.2784 | $86,001 | $89,001 |
| $56,001 | $58,001 | 0.2752 | $89,001 | $92,001 |
| $58,001 | $60,001 | 0.2720 | $92,001 | $95,001 |
| $60,001 | $62,001 | 0.2688 | $95,001 | $98,001 |
| $62,001 | $64,001 | 0.2656 | $98,001 | $101,001 |
| $64,001 | $66,001 | 0.2624 | $101,001 | $104,001 |
| $66,001 | $68,001 | 0.2592 | $104,001 | $107,001 |
| $68,001 | $70,001 | 0.2560 | $107,001 | $110,001 |
| $70,001 | $72,001 | 0.2528 | $110,001 | $113,001 |
| $72,001 | $74,001 | 0.2496 | $113,001 | $116,001 |
| $74,001 | $76,001 | 0.2464 | $116,001 | $119,001 |
| $76,001 | $78,001 | 0.2432 | $119,001 | $122,001 |
| $78,001 | $80,001 | 0.2400 | $122,001 | $125,001 |
| $80,001 | $82,001 | 0.2368 | $125,001 | $128,001 |
| $82,001 | $84,001 | 0.2336 | $128,001 | $131,001 |
| $84,001 | $86,001 | 0.2304 | $131,001 | $134,001 |
| $86,001 | $88,001 | 0.2272 | $134,001 | $137,001 |
| $88,001 | $90,001 | 0.2240 | $137,001 | $140,001 |
| $90,001 | $92,001 | 0.2208 | $140,001 | $143,001 |
| $92,001 | $94,001 | 0.2176 | $143,001 | $146,001 |
| $94,001 | $96,001 | 0.2144 | $146,001 | $149,001 |
| $96,001 | $98,001 | 0.2112 | $149,001 | $152,001 |
| $98,001 | $100,001 | 0.2080 | $152,001 | $155,001 |
| $100,001 | $102,001 | 0.2048 | $155,001 | $158,001 |
| $102,001 | $103,651 | 0.2016 | $158,001 | $161,001 |
| ‐‐‐ | ‐‐‐ | 0.1984 | $161,001 | $161,101 |
| $103,651 | and up | 0.0000 | $161,101 | and up |
*NOTE: The FAGI figures indicated have been adjusted as required by Maryland Law.
Student Loan Debt Relief Tax CreditAre you a Maryland taxpayer with college loan debt? If so, you are encouraged to apply for the Student Loan Debt Relief Tax Credit for tax year 2024. The deadline to submit your application is September 15, 2024.
Since the program’s introduction in 2017, more than 58 thousand tax credits have been awarded totaling more than $67 million.
The program is administered by the Maryland Higher Education Commission (MHEC) which provides an income tax credit for Maryland residents who are making eligible undergraduate and/or graduate education loan payments.
To be eligible, you must claim Maryland residency for the 2024 tax year, file 2024 Maryland state income taxes, have initially incurred at least $20,000 in undergraduate and/or graduate student loan debt, and have at least $5,000 in outstanding student loan debt at the time of applying for the tax credit.
Those who receive the tax credit will be required to prove they used the full amount of the tax credit for the repayment of their eligible student loans. Otherwise, the recipient will have to return the credit.
Venison Donation - Feed the Hungry Organizations Tax CreditIndividuals who hunt and harvest an antlerless deer in compliance with State hunting laws and regulations, and donate the processed meat to a venison donation program administered by a qualified tax exempt organization, may claim a credit against their State personal income tax for up to $50 of qualified expenses to butcher and process an antlerless deer for human consumption. The total amount of the credits may not exceed $200 in any taxable year unless the individual harvested each deer in accordance with a deer management permit.
Any unused portion of the qualified expenses may not be carried over to another taxable year.
To claim the credit, you must complete Part G of Form 502CR and attach to your Maryland income tax return. You must also report the credit on Maryland Form 502, 505 or 515.
Independent Living Tax CreditAn individual may claim a credit against their Maryland State income tax equal to 50% of the qualified expenses incurred during a taxable year to install accessibility and universal visitability features to or within a home.
"Accessibility and universal visitability features" means components of renovation to an existing home that improves access to or within the home for individuals with disabilities. "Qualified expenses" means costs incurred to install accessibility and universal visitability features to or within a home.
For any taxable year, the credit may not exceed the lesser of: (i) $5,000; or (ii) the State income tax imposed for the taxable year calculated before the application of the credits allowed under §§ 10-701, 10-701.1, and 10-741 of the Tax-General Article but after the application of any other credit allowed. The unused amount of the credit may not be carried over to any other taxable year. The credit amount is limited to the lesser of the individual's state tax liability for that year or the maximum allowable credit of $5,000.
The qualified expenses incurred must be certified by the Maryland Department of Housing and Community Development. To claim the credit, an individual shall: (i) file an amended income tax return for the taxable year in which the qualified expenses were incurred; and (ii) attach a copy of the Maryland Department of Housing and Community Development's certification of the approved credit amount to the amended income tax return.
To claim the credit, you must complete Part K of Form 502CR and attach to your Maryland income tax return. You must also report the credit on Maryland Form 502, Form 505 or Form 515.
For more information, contact:
Maryland Department of Housing and Community Development
7800 Harkins Road
Lanham, Md. 20706
301-429-7400
dhcd.maryland.gov/Pages/Contact-Us.aspx
customerservice.dhcd@maryland.gov
If you are a qualified licensed physician or a qualified nurse practitioner who served without compensation as a preceptor, you may be eligible to claim a nonrefundable credit against your State tax liability. There are two credits for qualified preceptors. The first credit on line 1 of Part J on Form 502CR is only available for licensed physicians. The second credit on line 2 of Part J on Form 502CR is available for both licensed physicians and nurse practitioners.
A licensed physician who served as a physician preceptor in a preceptorship program authorized by an accredited medical school in Maryland may claim a credit on line 1 of Part J on Form 502CR in the amount of $1,000 for each student for whom the licensed physician served as a physician preceptor without compensation. For purposes of claiming the credit on line 1 of Part J on Form 502CR, "preceptorship program" means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs an enrolled student of a liaison committee on medical education-accredited medical school in Maryland or an individual in a postgraduate medical training program in Maryland with a licensed physician who meets the qualifications as a preceptor. To qualify for the credit, the licensed physician must have worked in an area of Maryland identified as having a health care workforce shortage by the Maryland Department of Health (MDH). The licensed physician must have worked a minimum of three rotations, each consisting of 160 hours of community-based clinical training. The amount of this credit may not exceed $10,000.
A nurse practitioner or licensed physician who served as a preceptor in a preceptorship program approved by the Maryland Board of Nursing may claim a credit on line 2 of Part J on Form 502CR in the amount of $1,000 for each nurse practitioner student for whom the nurse practitioner or licensed physician served as a preceptor without compensation. For purposes of claiming the credit on line 2 of Part J on Form 502CR, "preceptorship program" means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs a nurse practitioner student enrolled in a nursing education program that is recognized by the Maryland Board of Nursing with a nurse practitioner or licensed physician who meets the qualifications as a preceptor. To qualify for the credit, a nurse practitioner or licensed physician must have worked in an area of Maryland identified as having a health care workforce shortage by the Maryland Department of Health. The nurse practitioner or licensed physician must have worked a minimum of three rotations, each consisting of at least 100 hours of community-based clinical training. The amount of this credit may not exceed $10,000.
A health care practitioner (i.e., a licensed physician, a physician assistant, or a registered nurse practitioner) who served as a preceptor in a preceptorship program approved by the Maryland Department of Health may claim a credit on line 3 in the amount of $1,000 for each physician assistant student rotation for which the health care practitioner served as a physician assistant preceptor without compensation. For purposes of claiming the credit on line 3, "preceptorship program" means an organized system of clinical experience that, for the purpose of attaining specified learning objectives, pairs an enrolled student of a physician assistant program in the State with a health care practitioner who meets the qualifications of a preceptor. To qualify for the credit, a health care practitioner must have worked in an area of Maryland identified as having a health care workforce shortage by the Maryland Department of Health. The health care practitioner must have worked a minimum of three rotations, each consisting of at least 100 hours of community-based clinical training in family medicine, general internal medicine, or general pediatrics. The amount of this credit may not exceed $10,000.
NOTE: A copy of the required certification from the Maryland Department of Health must be included with Form 502CR.
Eligibility for these credits is limited to funds budgeted. Applicants seeking certification will be approved on a first-come, first-served basis. Go to the Maryland Department of Health website at health.maryland.gov for more information.
Endow Maryland Income CreditA taxpayer who makes a donation to a qualified permanent endowment fund at an eligible community foundation may be eligible for a credit against the Maryland State income tax. The taxpayer must apply to the Maryland Department of Housing and Community Development (DHCD) for a certification for the donation. This certification must be attached to the Form 502CR at the time the Maryland income tax return is filed.
Individuals who are eligible to claim the Endow Maryland income tax credit, and who are not PTE members may elect to claim this credit on Part I of Form 502CR, instead of claiming the credit on Form 500CRW. However, an individual may not claim this credit on both Form 500CRW and Form 502CR. PTE members who are eligible for this credit must claim the credit on Business Income Tax Credit Form 500CRW.
Individuals who anticipate having a carryover of the Endow Maryland income tax credit are advised to use Form 500CRW, instead of Form 502CR.
The credit is limited to 25% of the approved donation (in cash or publicly traded securities) not to exceed $50,000.
NOTE: A copy of the required approval from the DHCD must be included with Form 502CR.
This credit is not refundable and is applied only against the Maryland State income tax. To the extent the credit is earned in any year and it exceeds the State income tax, you are entitled to an excess carryover of the credit until it is used, or it expires five years after the credit was earned, whichever comes first.
NOTE: The amount of donation shown on line 2 of Part I on Form 502CR requires an addition to income. See Instruction 12 in the Maryland Resident Instruction Booklet.
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite
Baltimore, MD 21202
410-209-5800
Donors that make a donation to a qualified permanent endowment fund held at an eligible institution of higher education may be eligible for a credit against the Maryland State income tax. The tax credit terminates December 31, 2028.
Cash donations made by the taxpayer to a qualified permanent endowment fund that meet certain requirements are eligible for tax credits. Donations must be made to a qualifying fund at any of the following institutions: Bowie State University, Coppin State University, Morgan State University, or University of Maryland Eastern Shore. In each tax year, the Comptroller may award a maximum of $60,000 in tax credits to each of the four institutions.
The credit is 25% of the value of a proposed donation to a qualified permanent endowment fund. The donor must apply to the Comptroller of Maryland for a certification of the donation.
Donors seeking the tax credit must apply to the Comptroller for a tax credit certificate in the calendar year that the donation is made.
Applications must be sent by e-mail and are approved on a first-come, first-serve basis until the maximum amount of authorized credits have been approved.
HBCU Tax Credit Application will be accepted beginning July 1 of the tax year in which the donation is made.
An acknowledgement letter is issued when an application for the proposed donation is received. Donors are required to submit documentation from the institution showing proof of donation within 30 days before a final tax credit certificate is issued.
Applications are accepted by e-mail only; and should be sent to HBCUtaxinfo@marylandtaxes.gov
All fields on the application are required to be completed fully. Incomplete applications will not be processed.
Donors claim the credit by including the certification at the time the Maryland income tax return is filed. Individuals that are eligible to claim the income tax credit and are not PTE members may elect to claim the credit using Form 502CR, instead of Form 500CR. However, a donor may not claim the credit on both Form 500CR and Form 502CR. PTE members that are eligible for the credit must claim it on the Business Income Tax Credit Form 500CR. Corporations and Fiduciaries that are eligible to claim the credit must use Form 500CR to do so.
A taxpayer claiming the credit is required to add back the amount of the credit claimed to Maryland adjusted gross income or Maryland modified income, to the extent excluded from federal adjusted gross income.
Comptroller of Maryland
HBCU Tax Credit Office
Community Investment Income CreditBusinesses or individuals who contribute to approved Community Investment Programs may be eligible for a credit against the Maryland State income tax. Contributions must be made to a nonprofit organization approved by the Department of Housing and Community Development (DHCD). The taxpayer must apply to and receive approval by the DHCD for each contribution for which a credit is claimed.
Individuals who are eligible to claim the Community Investment Tax Credit (CITC), and who are not PTE members may elect to claim this credit on Part H of Form 502CR, instead of claiming the credit on Form 500CR. However, an individual may not claim this credit on both Form 500CR and Form 502CR. PTE members who are eligible for this credit must claim the credit on Business Income Tax Credit Form 500CR.
Individuals who anticipate having a carryover of the CITC are advised to use Form 500CR instead of Form 502CR. Individuals who have an existing carryover on their 2017 Form 500CR may elect to use Form 502CR if their Excess Carryover Credit is attributable only to the CITC.
The credit is limited to 50% of the approved contributions (including real property) not to exceed $250,000.
NOTE: A copy of the required approval from the DHCD must be included with Form 502CR.
This credit is not refundable and is applied only against the Maryland State income tax. To the extent the credit is earned in any year and it exceeds the State income tax, you are entitled to an excess carryover of the credit until it is used or it expires five years after the credit was earned, whichever comes first.
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite
Baltimore, MD 21202
410-209-5800
citc.nr@mdhousing.org
In 2022, the Comptroller's Office began accepting applications for charitable distributors of diapers and hygiene products (Form 087).
Taxpayers who donate to a qualified charitable entity may subtract up to $1,000 of donations to a qualified charitable entity from their federal adjusted gross income to determine their Maryland adjusted gross income. Eligible donations include (1) disposable diapers, (2) other hygiene products for infants and children, (3) feminine personal hygiene products, or (4) cash specifically designated for the purchase of these products. Refer to the income tax instruction booklets for information on how to claim this subtraction. The subtraction is available for donations made to all taxable years beginning after December 31, 2020, but before January 1, 2027.
To date, the Comptroller has approved the applications for the following charitable entities. (This list will be updated as new applications are approved.)
If you are 65 or older, you can take advantage of several tax benefits on your Maryland return. You are allowed a higher income level before being required to file a return, and you are entitled to an additional personal exemption of $1,000. You may also qualify for a pension exclusion that increases each year, and your Social Security and Railroad Retirement benefits are not subject to Maryland tax.
Quick Links to Worksheets for Seniors
As a senior citizen, one of the tax benefits you enjoy is a higher income allowance before you are required to file a Maryland income tax return. You are required to file a return if your gross income exceeds the amount listed below for your filing status. These requirements apply to both resident and nonresident taxpayers. Do not include income from Social Security or Railroad Retirement benefits when determining your gross income.
| Minimum Filing Levels for Taxpayers Age 65 or Older Tax Year 2020 | |
|---|---|
| Filing Status | Gross Income |
| Single, 65 or older | $12,400 |
| Joint return, one spouse 65 or older | $24,800 |
| Joint return, both spouses 65 or older | $24,800 |
| Married filing separately, regardless of age | $12,400 |
| Head of household, 65 or older | $18,650 |
| Qualifying widow(er), 65 or older | $24,800 |
If you or your spouse is 65 or over or blind, you are entitled to an extra $1,000 personal exemption, in addition to the regular personal exemption that you may be entitled to. If you have a federal adjusted gross income of up to $100,000 (up to $150,000 if filing jointly) you are entitled to a $3,200 exemption on the Maryland return. For taxpayers with higher incomes, the exemption amount is limited. See the Exemption Amount Chart included in Instruction 10 of the Maryland Resident tax booklet.
You must complete the Exemptions section of the return to determine your total exemption allowance. Enter the number of exemptions in the appropriate boxes based upon your entries in parts A, B, and C of the Form 502. Make sure you check both boxes in columns 6 and 7 of the Exemptions section for each of your dependents who are age 65 or over on Form 502B. Enter your total exemption allowance on line 19 of Form 502.
Federal Government RetireesAs a federal government retiree, you can have state tax withheld from your pension.
The U.S. Office of Personnel Management provides an online service for retirees to begin, change or stop the withholding of Maryland income taxes from your annuity.
You can also obtain tax withholding assistance from the U.S. Office of Personnel Management by telephone at 1-888-767-6738 or by e-mail at retire@opm.gov.
Be sure to have your CSA or CSF retirement claim number handy - and your Social Security number - when contacting the office.
Maryland Pension Exclusion Military Retirement IncomeIf you or the spouse of a military retiree receives military retirement income, you will be able to subtract up to $5,000 of your military retirement income including death benefits from your federal adjusted gross income before determining your Maryland tax. Beginning with tax year 2018, if you are age 55 or older, you will be able to subtract up to $15,000 of the military retirement income including death benefits.
The retirement income must have been received as a result of any of the following military service:
The benefit also applies to persons separated from active duty employment with the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey.
To claim the benefit, complete Form 502 and follow the instructions included in the resident tax booklet for line 13. Be sure to indicate code letter u on line 13.
Pension exclusion
If you are a retired military member 65 years of age or older, you may also qualify for Maryland's pension exclusion.
Two-Income CouplesMarried senior citizens who both receive wages, interest, pension, business or other kinds of income that are subject to Maryland tax can subtract up to $1,200 or the income of the spouse, whichever is less.
You can use the Two-Income Married Couple Subtraction Worksheet in Instruction 13 of the Maryland resident tax booklet to help calculate the correct subtraction amount for your situation.
Social Security or Railroad Retirement Benefits ExemptionMaryland does not tax Social Security and/or Railroad Retirement benefits. If you receive Social Security benefits and/or Railroad Retirement benefits and any amount of those benefits is included in your federal adjusted gross income, you can exempt those benefits from state and local tax in these easy steps:
If you also are eligible for Maryland's pension exclusion, be sure to report all of your Social Security and/or Railroad Retirement benefits on line 3 of the pension exclusion computation worksheet - not just those benefits you included in your federal adjusted gross income.
Power of AttorneyThe Comptroller's Office will no longer accept the federal Form 2848 or federal Form 8821 as power of attorney forms for Maryland tax purposes.
Please use one of the following forms:
We will continue to accept a durable power of attorney or any other power of attorney form authorized by Maryland law.
The completed Maryland Form 548 should include all identifying information for the taxpayer including:
The tax representative or appointed authority authorized to have power of attorney and to receive and inspect confidential tax information for the taxpayer must specify on the form the representative's name, mailing address, daytime telephone number, signature and designation item number (1-10). The Maryland Form 548 must also be filed with government-issued identification for the taxpayer (not the representative) unless the representative's designation is item number 1, 2 or 3.
The tax matters to be discussed by the taxpayer's representative with power of attorney must include the following information:
If the power of attorney form does not include all the information as instructed it will not be accepted.
The power of attorney form shall be valid until superseded, revoked or by the death of the taxpayer(s) or representative(s).
Tax information can be disclosed to the appropriate party possessing power of attorney if the "Check Here" box on the appropriate form (Form 502, Form 505, etc.) has been marked. This authority extends to the estimated payments made for the subsequent tax year.
There is no such thing as a "Verbal POA". If a taxpayer calls and their representative is present the taxpayer can give permission for the representative to speak to us at that time. However, the approval is for that phone call at that time only.
Volunteer Income Tax Preparation Organizations V.I.T.A/A.A.R.P/T.C.E
Volunteers can use Maryland Form 548 and Maryland Form 548P with no PTIN. All information will still be required in order to accept the POA. They should clearly indicate on the form the volunteer organization with whom they are affiliated.
Power of attorney forms can be mailed, faxed or scanned and e-mailed.
If mailing the forms they can be sent to:
Comptroller of Maryland
Revenue Administration Division
P.O. Box 1829
Attn: POA
Annapolis, Maryland 21404-1829
If faxing the forms they can be faxed to 410-260-6213.
If scanning and e-mailing the forms they can be e-mailed to RADPOA@marylandtaxes.gov
For more information about power of attorney matters, call 410-260-7424, Monday - Friday, 8:30 a.m. - 4:30 p.m. You can also e-mail related inquiries to taxprohelp@marylandtaxes.gov
Tax Assistance for SeniorsFree tax preparation
You can call or visit any of our taxpayer service offices to receive free state tax assistance. If you bring a completed copy of your federal return and all related documents to any of our offices, we will complete your Maryland income tax return and even file it electronically for you - free of charge.
Volunteer Income Tax Assistance, Tax Counseling for the Elderly
We also work closely with IRS to help support the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs which offer free tax preparation services to elderly taxpayers with low or moderate incomes. We help train VITA and TCE volunteers in preparation for each tax filing season.
The IRS works with the following sponsors to administer the program in Maryland:
If you are a legal resident of Maryland and serving in the military, you must file a resident Maryland tax return, regardless of where you are stationed. You must also report all of your taxable income from all sources, including military pay.
The wages earned by a spouse of a nonresident U.S. servicemember may be exempt from Maryland income tax under the Military Spouses Residency Relief Act, when the spouse of the servicemember is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Form MW507 with their employer. Beginning 2011, you must also complete and attach Form MW507M. For more information, see Employer Withholding Tax Alert- Important Information for Spouses of U.S. Military Servicemembers and Administrative Release 1: Military Personnel and Civilian Spouses - Both Residents and Nonresidents of Maryland
Military service may entitle you to special tax breaks for overseas pay and retirement income. The following links offer more information about helpful tax benefits and other unique filing situations that affect military families in Maryland.
Forms and Worksheets for Military Personnel
You do NOT need to file a Maryland return if:
Tax credits
You may be eligible for Maryland income tax credits as well as tax credits granted by another state. See Maryland Form 502CR chart and instructions. Follow the instructions provided by your state of legal residence for any possible credits allowed by that state.
Military Personnel who are Residents of MarylandIf you are a legal Maryland resident and a member of the military, you must file a resident Maryland income tax return, using Form 502, and report all income from all sources, wherever earned. You do not lose your resident status if you are stationed outside of Maryland during the taxable year.
Local income tax
Resident military personnel who develop a state income tax liability in Maryland are also liable for the local income tax. As a resident, you are subject to the local income tax regardless of whether you were stationed in Maryland or not.
Retirement income
If you are a retired member of the military, you may be able to subtract up to $5,000 of your military retirement income from your federal adjusted gross income before determining your Maryland tax.
Overseas pay
If you earned active duty income overseas outside the U.S. boundaries or possessions, you may be able to subtract up to $15,000 in overseas pay.
Estimated taxes
You or your civilian spouse must file estimated tax returns if your estimated Maryland taxable income not subject to employer withholding results in a tax liability exceeding $500. For more information, see Estimated Taxes. For more information about the filing situation for military residents in Maryland, see Instruction 29 in the Maryland resident tax booklet.
Military Personnel who are Nonresidents of MarylandIf you are a legal resident of another state but are stationed in Maryland, your military income is not subject to Maryland income tax. However, you will be taxed as a nonresident on any portion of federal adjusted gross income that was derived from any real or personal property that is located in Maryland as well as non-military income earned in Maryland, including income from Maryland lottery prizes.
Military income only
If you are a nonresident with military income only, you do not have to file a Maryland income tax return.
Military income and other income outside Maryland
If you are a nonresident with military income only - or military income and other income earned outside of Maryland - you do not have to file a Maryland income tax return.
Military and other income earned in Maryland, single or with an unemployed civilian spouse
If you are a nonresident with military income and other income earned in Maryland, single, or have an unemployed spouse, you must file a nonresident Maryland Form 505, reporting total income and subtracting military pay. You must also file Form 505NR, subtracting unearned and non-Maryland income, then computing the Maryland taxable net income. In addition, you must adjust your exemptions and deductions. The State of Maryland does not tax the military pay, and does not use the military pay to increase the tax liability imposed on other income earned in Maryland.
Military income with or without other income earned in Maryland, and civilian spouse employed in Maryland
See Administrative Release 1 - Military Personnel and Civilian Spouses - Both Residents and Nonresidents of Maryland for guidance and application of the Military Spouses Residency Relief Act, amending the Servicemembers Civil Relief Act.
Both spouses in the military and not domiciled in Maryland and one or both have Maryland income
If you and your spouse are in the military and not domiciled in Maryland, and one or both have Maryland income, you must file a joint nonresident return. You must also adjust your exemptions and deductions.
Civilian Spouse Employed in MarylandThe wages earned by a spouse of a nonresident U.S. servicemember may be exempt from Maryland income tax under the Military Spouses Residency Relief Act, when the spouse of the servicemember is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Form MW507 with their employer. Beginning in 2011, you must also complete and attach Form MW507M. For more information, see Employer Withholding Tax Alert: Important Information for Spouses of U.S. Military Servicemembers and Administrative Release 1: Military Personnel and Civilian Spouses - Both Residents and Nonresidents of Maryland
As the military spouse, you remain a nonresident for purposes of Maryland taxation, and are not required to file a Maryland return, unless you received non-military income from Maryland sources. You may choose to file a joint resident return using Form 502, or your civilian spouse may file a separate resident return.
Filing separately
If your civilian spouse files a separate resident return then you are not required to file a Maryland return, unless you received non-military income from Maryland sources. See Instruction 8 in the resident tax booklet.
Filing jointly
If you file a joint return, report your total federal adjusted gross income on your Maryland return. Subtract military pay and the military taxpayer's portion of any investment income (interest, dividends, etc.) from the joint federal adjusted gross income, on the line for nonresident income.
Local income tax
The military taxpayer's Maryland income is not subject to the local income tax. Enter the word "MILITARY" on line 33. Standard or itemized deductions and exemptions must be adjusted, using a ratio of Maryland adjusted gross income to federal adjusted gross income. You should use the Military Worksheet A to compute the adjustment to the standard deduction or itemized deductions as well as exemptions. Use Military Worksheet B to compute the local tax for the civilian taxpayer.
If you are not certain which filing status to use, figure your tax both ways to determine the best status for you. For more information, see Instruction 26 in the resident booklet.
Filing Extension for Military Serving in a Combat ZoneMaryland allows the same six-month extension for filing and paying personal income taxes for military and support personnel serving in a designated combat zone or qualified hazardous duty area as allowed by IRS . The extension also applies to individuals who serve in the combat zone in support of U.S. armed forces.
The extension applies to the filing of current tax returns, back year returns, estimated tax returns, amended returns or appeals to a Maryland Tax Court.
Hospitalization
If you are hospitalized as a result of injuries sustained in a combat zone, you qualify for the extension since hospitalization is considered as service in a combat zone.
Spouses also qualify for the extension whether joint or separate returns are filed. There are two exceptions concerning hospitalization and termination of the combat zone designation. See the IRS Web site at www.irs.gov
If you are affected by the extension, you should enter 912 in the code number box near the signature area on your Maryland return. For more information about the combat zone provision, visit the IRS Web site at www.irs.gov
Overseas Pay SubtractionIf you are a legal Maryland resident and a member of the U.S. armed forces who earned military pay while in active service outside U.S. boundaries or possessions, you may subtract up to $15,000 of that military pay from your taxable income.
If your total military pay exceeds $30,000, you do not qualify for this subtraction. You can use the Military Overseas Income Worksheet included in Instruction 13 of the Maryland tax booklet to compute the subtraction. For more information, see code p of Instruction 13.
Military Retirement IncomeIf you or the spouse of a military retiree receives military retirement income, you will be able to subtract up to $5,000 of your military retirement income including death benefits from your federal adjusted gross income before determining your Maryland tax. Beginning with tax year 2018, if you are age 55 or older, you will be able to subtract up to $15,000 of the military retirement income including death benefits.
The retirement income must have been received as a result of any of the following military service:
The benefit also applies to persons separated from active duty employment with the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey.
To claim the benefit, complete Form 502 and follow the instructions included in the resident tax booklet for line 13. Be sure to indicate code letter u on line 13.
Pension exclusion
If you are a retired military member 65 years of age or older, you may also qualify for Maryland's pension exclusion.
Change Your ResidenceTo change your legal residence as a member of the military, you must:
The Comptroller's Office will no longer accept the federal Form 2848 or federal Form 8821 as power of attorney forms for Maryland tax purposes.
Please use one of the following forms:
We will continue to accept a durable power of attorney or any other power of attorney form authorized by Maryland law.
The completed Maryland Form 548 should include all identifying information for the taxpayer including:
The tax representative or appointed authority authorized to have power of attorney and to receive and inspect confidential tax information for the taxpayer must specify on the form the representative's name, mailing address, daytime telephone number, signature and designation item number (1-10). The Maryland Form 548 must also be filed with government-issued identification for the taxpayer (not the representative) unless the representative's designation is item number 1, 2 or 3.
The tax matters to be discussed by the taxpayer's representative with power of attorney must include the following information:
If the power of attorney form does not include all the information as instructed it will not be accepted.
The power of attorney form shall be valid until superseded, revoked or by the death of the taxpayer(s) or representative(s).
Tax information can be disclosed to the appropriate party possessing power of attorney if the "Check Here" box on the appropriate form (Form 502, Form 505, etc.) has been marked. This authority extends to the estimated payments made for the subsequent tax year.
There is no such thing as a "Verbal POA". If a taxpayer calls and their representative is present the taxpayer can give permission for the representative to speak to us at that time. However, the approval is for that phone call at that time only.
Volunteer Income Tax Preparation Organizations V.I.T.A/A.A.R.P/T.C.E
Volunteers can use Maryland Form 548 and Maryland Form 548P with no PTIN. All information will still be required in order to accept the POA. They should clearly indicate on the form the volunteer organization with whom they are affiliated.
Power of attorney forms can be mailed, faxed or scanned and e-mailed.
If mailing the forms they can be sent to:
Comptroller of Maryland
Revenue Administration Division
P.O. Box 1829
Attn: POA
Annapolis, Maryland 21404-1829
If faxing the forms they can be faxed to 410-260-6213.
If scanning and e-mailing the forms they can be e-mailed to RADPOA@marylandtaxes.gov
For more information about power of attorney matters, call 410-260-7424, Monday - Friday, 8:30 a.m. - 4:30 p.m. You can also e-mail related inquiries to taxprohelp@marylandtaxes.gov
Veterans OrganizationsPurchases made by veterans organizations and their auxiliary units are exempt from Maryland sales tax if the purchases are made for the organization's exempt purposes.
The exemption became effective on July 1, 2006. Exemption certificates issued to qualifying veterans' organizations will expire on September 30, 2017. The new exemption certificate is a white card with green printing, bearing the organization's eight-digit exemption number. Certificates are renewed every five (5) years.
The organizations or their auxiliaries or units must possess a 501(c)(19) letter of determination from IRS as evidence of qualification for the exemption. For more information on obtaining a letter of determination from IRS, visit the IRS Web site .
To apply for an exemption certificate, print a copy of Combined Registration Application and submit the completed application with a copy of the 501(c)(19) letter of determination, articles of incorporation and bylaws. The application may also be obtained by calling Taxpayer Service at 410-260-7980, or toll-free 1-800-638-2937 from elsewhere in Maryland, Monday - Friday, 8:30 a.m. - 4:30 p.m. EDT
Contribute Through Maryland's Tax CheckoffsYou can use your Maryland income tax return to contribute money to protect our state's natural resources, support people with developmental disabilities, and support cancer research.
Your contribution will reduce the amount of your state refund or increase the amount of additional state tax you owe.
However, any contribution you make to the Chesapeake Bay and Endangered Species Fund, Developmental Disabilities Services and Support Fund, and the Maryland Cancer Fund is tax deductible for the year the contribution was made, if you itemize deductions.
Chesapeake Bay and Endangered Species Fund
You may contribute any amount you wish to the Chesapeake Bay and Endangered Species Fund, using line 35 of Form 502, line 22 of Form 504, or line 38 of Form 505.
Contributions to this fund support projects to restore wetlands, plant trees and protect threatened plants and animals. The donations are divided evenly between the Chesapeake Bay Trust and the Wildlife and Heritage Division of the Maryland Department of Natural Resources.
Developmental Disabilities Services and Support Fund
You may contribute any amount you wish to this fund, using line 36 on Form 502, line 23 on Form 504 or line 39 of Form 505. Contributions to the Developmental Disabilities Services and Support Fund help provide vital support to children and adults with disabilities such as autism, cerebral palsy, and Down syndrome. Services include support to families, job training and employment for adults, support to live in the community and crisis intervention.
Maryland Cancer Fund
You may contribute any amount you wish to the Maryland Cancer Fund , using line 37 on Form 502, line 24 on Form 504 or line 40 on Form 505. Contributions to the Maryland Cancer Fund support grants for cancer research, prevention and treatment.
Fair Campaign Financing Fund
You may contribute any amount you wish to this fund. The amount contributed will reduce your refund or increase your balance due. Use Line 38 on Form 502 or Line 41 on Form 505 or Line 25 on Form 504.
Only for gubernatorial campaigns.
Change of Address Individual TaxpayersA change of address request for personal taxes must come from you in writing, and it must include your Social Security Number, your old address, your new address, and your signature.
Business TaxpayersA change of address for business taxes must include the Federal Identification Number (FEIN) and the Maryland Central Registration Number (CR), old address, new address and your signature.
Send your request to:
COMPTROLLER OF MARYLAND
REVENUE ADMINISTRATION DIVISION
TAXPAYER IDENTIFICATION
110 CARROLL STREET
ANNAPOLIS MD 21411-0001