Maryland Tax Filing
Filing Your Maryland Taxes
It is tax time again – or for some new workers it’s here for the first time. Figuring out and filing your tax forms can be daunting – but there is help. Here you will find answers, forms and additional help that will make your paperwork easier, faster and less stressful. Information below will help you determine your residency status, find the correct forms and answer other questions.
State income tax returns for 2019 are due Monday, April 15.
In addition to state income taxes, the city of Baltimore and 23 Maryland counties levy local income taxes, known as “piggyback” taxes. These local taxes range from 1.25 percent to 3.2 percent.
The Maryland state tax website includes helpful information regarding 10 income tax credits that are available to certain qualified taxpayers.
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Maryland Tax Forms
- Maryland Forms 502X-502XS - Long and Short Maryland Amended Tax Forms
- Maryland Form EL101 - Maryland Income Tax Declaration for Electronic Filing
- Maryland Form 503 - Maryland Resident Income Tax Return (Short Form)
- Maryland Form 502&502B - Maryland Resident Income Tax Return with Form 502B
- Maryland Form 515 - Maryland Individual Non-resident Tax Return for Local Tax
- Maryland Form 502E - Maryland Application for Extension to File Personal Income Tax Return
- Maryland Nonresident Tax Booklet - Maryland Individual Non-resident Income Tax Booklet
- Maryland Form 505 - Maryland Individual Non-resident Income Tax Return
- Maryland Pension Exclusion Worksheet - Maryland Part-Year Resident Pension Exclusion Worksheet
- Maryland Resident Tax Booklet - Maryland Individual Resident Income Tax Booklet
- Maryland Form 502UP - Maryland Underpayment of Estimated Individual Income Tax
- Maryland Form MW507 - Maryland Employee's Withholding Exemption Certificate
- Maryland Form 502 - Maryland Individual Resident Income Tax Return (Long)
- Maryland Form 502CR - Maryland Individual Income Tax Credits
- Maryland Form 502SU - Maryland Maryland Subtractions From Income
- Maryland Form 505NR - Maryland Individual Non-resident Income Tax Calculation
- Maryland Form 502V - Maryland Use of Vehicle for Charitable Purposes Form
- Maryland Form 502TP - Maryland Computation of Tax Preference Income Modification Form
- Maryland Form 502AE - Maryland Subtraction for Income Derived in an Arts/Entertainment District Form
- Maryland Form 502H - Maryland Deduction for Preservation of Historic Property Form
- Maryland Form 502D - Maryland Declaration of Estimated Income Tax
- Maryland Form 502INJ - Maryland Injured Spouse Claim Form
- Maryland Form 502AC - Maryland Subtraction for Contribution of Artwork Form
Determine Your Residency Status, So You Use the Right Forms
What form you need to fill out and file to Maryland is based on your legal residency, or where your permanent, official “home address” was during 2019. Maryland categorizes its residents four ways: full-time Maryland residents, part-year, Maryland residents who worked in another state, residents of another state who worked in Maryland, and, non-residents who sold real estate or property located in Maryland.
Legally, you are a resident of Maryland if you lived here for more than six months of the year or if you lived in the state on December 31st. As a resident you are required to file a Maryland tax return if you filed a federal tax return. You also need to file a state tax return if your gross or total income was greater than the minimum dollar amount that is specified in the current booklet, Maryland State and Local Tax Forms and Instructions.
Part-Year Maryland Residents
If you lived at a “permanent home address” in Maryland during 2019 but not for the entire year, then you will need to file Form 502, which is the tax return for part-year residents. You can find information to help you in the Maryland State and Local Tax Forms and Instructions Booklet. Depending on your specific circumstances, Form 502 may be the only return you need to file with the state of Maryland. However, you may need to file an income tax return in other states if you were a legal resident there during the tax year. You will likely need to send Maryland a copy of your return for any other state.
If you received a pension — Railroad Retirement benefits, Social Security or other taxable pension — and you were a part-time resident of Maryland, make sure to fill out and send in the Pension Exclusion Computation Worksheet. Pension income information is handled basically the same way for both part-time and full-time residents, but part-time filers will prorate their pension income to reflect only the months they lived in Maryland.
Maryland Resident — But Worked Out of State
If you are a Maryland resident who worked for a company in Washington, D.C., Pennsylvania, Virginia or West Virginia, you must file a Maryland tax return. However, if your employer withheld money for taxes in the employer’s state, you’ll want to check with your payroll or human resources office for the form you need to get that money refunded to you. If you have to pay taxes to the other state on income earned in that state, you may be eligible for a Maryland tax credit. You’ll need to file Form 502CR (Maryland Personal Income Tax Credits for Individuals) to apply for any tax credits. Be sure to include a copy of any tax returns filed to other states when you file your Maryland return.
Residents of Maryland who worked in Delaware will need to file state income tax returns in both states. So that you don’t get hit with dual taxation, fill out and turn in Form 502CR, Maryland Personal Income Tax Credits for Individuals, to receive a Maryland credit for any income taxes you paid in Delaware. When you send in your Maryland forms you’ll want to also include a copy of your Delaware return.
Worked in Maryland — but not a Maryland Resident
If you are not a legal resident of Maryland but worked in Maryland or gained any additional income from a Maryland-taxable source, you will pay both Maryland income tax and a 1.25 percent special nonresident tax. Nonresidents are also required to file Form MW507, Employee’s Maryland Withholding Exemption Certificate as your payroll department will need it to calculate how many exemptions apply to your income tax withholding.
Given that, if your only wages or source of income came from Maryland but you are a resident of Washington, D.C., Virginia, Pennsylvania or West Virginia, you are not liable to pay Maryland income taxes. File Form MW507 to apply for exemption from Maryland income taxes and withholdings resulting from Maryland taxes placed on your income.
If your only source of income was in Maryland but you are a Delaware resident, you will need both Form 505 (Maryland Nonresident Individual Income Tax Return) and Form 505NR (Maryland’s Nonresident Income Tax Computation). If you lived in Wilmington, Del., you also will also need to file Form 515, titled Maryland Tax Return – Nonresident Local Tax.
Similar to Delaware residents, if you worked in Maryland but were a resident of Pennsylvania, Alabama, Indiana, Kentucky, Michigan, New York, Ohio or Missouri, file Maryland Form 515 (Maryland Tax Return – Nonresident Local Tax). You’ll also want to check with your local government office to confirm your local tax laws.
For more information, please download the Maryland 2011 Nonresident Tax Forms & Instructions Booklets.
No matter where you lived, if you sold real property or real estate located in Maryland, you are required to pay tax on that income. There are some specific exemptions that may apply, however, but they would have been applied at the time of the sale. The amount of taxes due is based on the final sale price and is to be paid at the time of the sale. The recorder, or the official who records the deed transfer for the property, collects any tax due on the sale before the property deed can change hands. The tax is paid to either the Clerk of the Court or to the Maryland Department of Assessments and Taxation (MDAT). More information can be found in the booklet, Withholding Requirements for Sales of Real Property by Nonresidents. Also see the state-provided information booklets: Maryland Tax Forms for Nonresidents, and, Maryland’s Withholding Requirements for Sales or Transfers of Real Property and Associated Personal Property by Nonresidents – Tax Year 2019.