Maryland Income Tax Forms and Maryland Income Tax Rate Information

Maryland Income Tax E-File Information

The Comptroller of Maryland now designates e-File Software Vendors’ Maryland products as either Basic or Comprehensive (see Tax Alert). This applies to both business and individual income tax software packages. These designations help taxpayers and tax professionals determine which software will best fit their needs.

The Basic designation is used for simple returns. Software packages designated as Comprehensive support all electronic forms, including Form 500CR, Amended Returns and the transmission of binary attachments (PDFs).

How to File Maryland Income Tax Online

For a list of e-File software vendors (for individual tax returns), see http://taxes.marylandtaxes.com/Tax_Professionals/Vendors_and_Developers/Approved_Vendors/Approved_eFile_Software_Vendors-Individuals.shtml.

Income tax preparer requirements are available at

http://taxes.marylandtaxes.com/Tax_Professionals/General_Information/Tax_Preparation_in_Maryland.shtml

 

Who must file Maryland Income Tax?

Residents under 65 must file a return if they were required to file federal return or the following gross income levels are met: Single Persons (including dependent taxpayers) if income is $10,150 or more; joint return if income is $20,300 or more; married filing separately if income is $3,950 or more; head of household if income is $13,050 or more; qualifying widower if income is $16,350 or more. Higher income levels apply to those 65 years old or older. See MD Instruction box for Returns 502 and 503 at page 1, which can be found at: http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

 

Maryland Tax Residency

File a Maryland return if individual was resident of Maryland AND was required to file a federal return.

You are a resident of Maryland if:

*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 Maryland for 183 days or more, you must file a full-year resident return.

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 at http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

MILITARY AND OTHERS WORKING OUTSIDE OF MARYLAND

Military and other individuals whose domicile is in Maryland, but who are stationed or work outside of Maryland, including overseas, retain their Maryland legal residence. Such persons do not lose Maryland residence just because of duty assignments outside of the State. Military personnel and their spouses should see Instruction 29 at http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

 

What are Maryland Income Tax Forms?

Residents file form 502 (long form) or 503 (short form). Nonresidents file Form 505 (Maryland tax return for a nonresident individual) or 515 (Maryland tax return – Nonresident local tax)

 

What are Maryland Income Tax Deductions, Maryland Income Exclusions, and Maryland Income Tax Exemptions?

Exemptions are based on the lever of your Federal Adjusted Gross Income. If your income is under $100,000, your personal exemption is $3,200 if you are filing single, married filing separately, married filing jointly, head of household, or as a qualifying widower. If your income is between $100,000 and $125,000, your exemption is $1,600 for single and married filing separately; $3,200 for married filing jointly, head of household, or as a qualifying widower; and $0 for dependent taxpayers. If your income is between $125,000 and $150,000, your exemption is $800 if you are filing single or married filing separately; $3,200 if you are filing married filing jointly, head of household, or as a qualifying widower; and $0 for dependent taxpayers. If your income is between $150,000 and $175,000, your exemptions is $0 if you are filing single or married filing separately; $1,600 if you are filing married filing jointly, head of household, or qualifying widower; and $0 for dependent taxpayers. If your income is between $175,000 and $200,000, your exemption is $0 if you are filing single or married filing separately; $800 if you are filing married filing jointly, head of household, or qualifying widower; and $0 for dependent taxpayers. There is no exemption for income in excess of $200,000. See instruction 10, of the resident instruction booklet at:

http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

 

Taxpayers may exclude social security income.

Maryland has a Two-Income Married Couple Subtraction, which allows a deduction of up to $1,200 if both spouses have any income subject to MD tax and file a joint return. See the Maryland 2013 Resident instruction booklet at http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

Non-resident income – if taxpayer began or ended residence in MD during the tax year, he or she may subtract the income earned while not a MD resident. Note MD uses federal adjusted gross income as the starting point for MD income tax.

Maryland offers both a Standard Deduction and an Itemized Deduction. The Standard Deduction is 15% of the Maryland Adjusted Gross Income with minimums of $1,500 and $3,000 and maximums of $2,000 and $4,000 depending on your filing status. You can itemize deductions only if you itemized on your federal return, however you are not required to itemize on the Maryland return just because you itemized your federal return. (Compute the tax each way to determine the greater benefit.) The various options for how military families may file and what deductions may be claimed are now detailed exhaustively in Administrative Release 1. For deduction worksheets and explanation see the resident instruction booklet available le at http://forms.marylandtaxes.com/current_forms/Resident_Booklet.pdf

A qualifying individual can subtract up to $5,000 of military retirement income received during the tax year. To qualify, you must have been a member of an active or reserve component of the armed forces of the United States, an active duty member of the commissioned corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey, a member of the Maryland National Guard, or the member’s surviving spouse or ex-spouse. 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.

 

What is Maryland Capital Gains Tax?

Taxed as ordinary income; follows federal rules on determining what constitutes capital gains and losses.

 

What is the Maryland Income Tax Deadline?

Return is due by April 15, 2015.

EXTENSION OF TIME TO FILE

Follow the instructions on Form 502E to request an automatic extension of the time to file your 2014 return. Filing this form extends the time to file your return, but does not extend the time to pay your taxes. Payment of the expected tax due

required with Form 502E by April 15, 2015. You can file and pay by credit card or electronic funds withdrawal (direct debit) at www.marylandtaxes.com. If no tax is due and a federal extension is requested, you do not need to file Form 502E or take any other action to obtain an automatic six month extension. If no tax is due and no federal extension was requested, file extension online at www.

marylandtaxes.com or by phone at 410-260-7829. Only submit Form 502E if tax is due.

 

Other Maryland Income Tax Notes

Credit for Child and Dependent Care Expenses – If you were eligible for a Child and Dependent Care Credit on your federal income tax return and your income is below

certain thresholds, you are entitled to a tax credit equal to a percentage of the federal credit.

Credit for Income Tax Paid to Another State

If you have income subject to tax in both Maryland and another state, you may be eligible for a tax credit. Note: You must attach a copy of Form 502CR and also a copy of the tax return filed in the other state. If these are not attached, no credit will be allowed.

Earned Income Credit

If one-half of your federal earned income credit is greater than your Maryland tax, you may also be eligible for a refundable earned income credit. This credit is the amount by which 25% of your federal earned income credit exceeds your Maryland tax liability. Complete the REFUNDABLE EARNED INCOME CREDIT WORKSHEET

(21A).

County Tax – Counties apply income tax in Maryland as well. Legal residence within MD determines which county to enter on the return.

 

Maryland Income Tax Contact Information

Comptroller of Maryland Revenue
Administration Division 80 Calvert Street
Annapolis, MD 21404

General Information: (410) 260-7980 (from Central Maryland) or 1-800-638-2937 (from other locations)

Website: Comptroller orMD Tax Site

Forms:Formsor email taxforms@comp.state.md.us

Refund Status: 1-800-218-8160 or (410) 260-7701; Refund Status

Maryland State Income Tax filing address:

Comptroller of Maryland Revenue 
Administration Division 110 Carroll Street
Annapolis, Maryland 21411

E-File Help Desk: (410) 260-7980 or (800) 638-2937 or email taxhelp@comp.state.md.us;EFile Help