Maryland Nonresident Income Tax Computation

Nonresident Income Tax Computation
2023 Form 505NR Non Resident Income Tax Calculation
MARYLAND
FORM

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505NR

2023

NONRESIDENT
INCOME TAX
CALCULATION

ATTACH TO YOUR TAX RETURN

First Name	

MI	

Last Name	

Social Security Number

Spouse's First Name	

MI	

Spouse's Last Name	

Spouse's Social Security Number

If you are filing Form 505, use the Form 505NR Instructions appearing on page 2 of this form.
If you are filing Form 515, use the Form 505NR Instructions appearing in Instruction 18 of the Form 515 Instructions.
PART I –	 CALCULATION OF TAX WITHOUT ALLOWING CERTAIN MODIFICATIONS
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1. Enter Taxable net income from Form 505, line 31 (or Form 515, line 32). . . . . . . . . . . . . . . . . . . 1.
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2. Enter tax from Tax Table or Computation Worksheet Schedules I or II. Continue to Part II.. . . . . . 2.
PART II – CALCULATION OF MARYLAND TAX
3. Enter your federal adjusted gross income from Form 505
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(or Form 515), line 17 (Column 1).. . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
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3a.	 Earned Income (See instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . 3a.
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4. Enter your federal adjusted gross income plus additions from Form 505 (or 515) line 21. . . . . . . . 4.
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5. Enter the Taxable Military Income of a Nonresident from line 22 of Form 505. . . . . . . . . . . . . . . . 5.
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6a.	 Enter your subtractions from line 23 of Form 505 or Form 515 . . . . . . . . . . . . . . . . . . . . . . . . . 6a.
6b.	 Enter non-Maryland income from Form 505 (or 515) not included on lines 5
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or 6a of this form (See instructions.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b.
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7. Add lines 5 through 6b. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.
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8. Maryland Adjusted Gross Income. Subtract line 7 from line 4.. . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
If you are using the standard deduction, recalculate the standard
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deduction based on the income on line 8 and enter on line 8a. . 8a.
9. Maryland Income Factor. Divide line 8 by line 3. The factor cannot exceed 1.000000 and
cannot be less than 0. If line 8 is 0 or less, the factor is 0. If line 8 is greater than 0 and
line 3 is 0 or less, the factor is 1.000000. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10. Deduction amount.
If you are using the standard deduction, multiply the standard
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deduction on line 8a by line 9 of this form and enter on line 10a . .  10a.
If you are itemizing your deductions, multiply the deduction on
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Form 505, line 26d, by line 9 of this form and enter on line 10b. . .  10b.
Form 515 Users, see Instruction 18 in Form 515 Instructions.
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11. Net income (Subtract line 10a or 10b from line 8.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Exemption amount. Multiply the total exemption amount on Form 505, line 28
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(or Form 515, line 29) by line 9.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
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13. Maryland Taxable Net Income (Subtract line 12 from line 11.). . . . . . . . . . . . . . . . . . . . . . . . . . 13.
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14. Enter the tax amount from line 2 of this form.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.
15. Maryland Nonresident factor: Divide the amount on line 13 on this form by line 1.
If more than 1.000000, enter 1.000000. If 0 or less, the factor is 0. . . . . . . . . . . . . . . . . . . . . 15.
16. Maryland Tax. Multiply line 14 by line 15. Enter this amount on Form 505, line 32a
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(Form 515, line 33).. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.
17. Special nonresident tax. Multiply line 13 of this form by 0.0225. Enter this amount
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on Form 505, line 32b. If line 13 is 0 or less, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
FOR FORM 515 FILERS ONLY.
If you are: (1) a nonresident employed in Maryland and (2) you are a resident of a local jurisdiction that imposes a
local income or earnings tax on Maryland residents, then you must file a Form 515 to report and pay a tax on your
Maryland wages. Form 515 filers pay a local income tax instead of the Special Nonresident Tax.
18. Local Income Tax. Multiply line 13 of this form by the local rate of the Maryland county
(or Baltimore City) where you are employed. Enter this amount on Form 515, line 39.
If line 13 is 0 or less, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.

MARYLAND
FORM

505NR

Using Form 505NR, Nonresident Income Tax Calculation,
follow the line-by-line instructions below to figure your
Maryland tax.
Line 1.	
Enter the taxable net income from Form 505,
line 31 or Form 515, line 32.
Line 2.	
Find the income range in the tax table that
applies to the amount on line 1 of Form 505NR.
Find the Maryland tax corresponding to your
income range. Enter the tax amount from the tax
table. If your taxable income on line 1 is $50,000
or more, use the Maryland Tax Computation
Worksheet schedules at the end of the tax table.
Line 3.	
Enter your federal adjusted gross income (FAGI)
from Form 505 or Form 515 lines 17 (column 1).
Line 3a.	

2023

NONRESIDENT INCOME
TAX CALCULATION
INSTRUCTIONS

Enter your earned income.
Earned income includes wages, salaries, tips,
professional fees and other compensation received
for personal services you performed. It also
includes any amount received as a scholarship
that you must include in your federal AGI.

Line 7.	

Add lines 5 through 6b.

Line 8.	
Subtract line 7 from line 4. This is your Maryland
Adjusted Gross Income.
Line 8a.	
If you are using the standard deduction amount,
recalculate the standard deduction (line 8) based
on the Maryland adjusted gross income.
Line 9.	
Compute your Maryland income factor by dividing
line 8 by line 3. Carry the factor to six decimal
places. The factor cannot exceed 1.000000 and
cannot be less than 0. If line 8 is 0 or less, the
factor is 0. If line 8 is greater than 0 and line 3
is 0 or less, the factor is 1.000000.
Line 10a.	
If you are using the standard deduction, multiply
the standard deduction on line 8a by the Maryland
Income Factor (line 9) and enter on line 10a.
Line 10b.	
If you are itemizing your deductions, multiply the
deduction on Form 505 line 26d by the Maryland
Income Factor (line 9) and enter on line 10b.

Enter the amount from Form 505 or 515, lines 21.

Line 11.	
If you are using the standard deduction, subtract
line 10a from line 8. If you are using itemized
deductions, subtract line 10b from line 8.

Line 5.	
Taxable Military Income of a nonresident, if
applicable.

Line 12.	
Multiply the total exemption amount on Form 505
or Form 515, line 29 by the factor on line 9.

Line 6a.	
Enter the amount of your subtractions from lines
23 of Form 505 or 515.

Line 13.	
Subtract line 12 from line 11.
Maryland taxable net income.

Line 6b.	
Enter any non-Maryland income (not including
losses reported on lines 1 through 14 of column
3, or adjustments to income reported on line 16
of column 3) from Form 505 (or 515), that have
not been included on lines 5 or 6a of this form.

Line 14.	

Line 4.	

	 Note: Make sure that you follow the
Important
instruction for line 6b above to arrive at the
correct amount. The non-Maryland losses and
adjustments should have been reported on line
18 of Form 505 (or 515) and included on the
amounts reported on line 4 of this form.
	 sure to include the following items if not
Be
already included on lines 5 or 6a.
•

	
Maryland
salaries and wages should be
included if you are a resident of a reciprocal
state.

•

	
Income subject to tax as a resident when
required to file both Forms 502 and 505
should be included.

•

	
Line
17 of column 3 on Form 505 (or 515)
should also include income for wages earned
in Maryland by a nonresident rendering
police, fire, rescue or emergency services in
an area covered under a state of
emergency declared by the Maryland
Governor, if the wages are paid by a
nonprofit organization not registered to
do business in the state and not otherwise
doing business in the state, or by a state,
county or political subdivision of a state,
other than the State of Maryland.

COM/RAD-318

This is your

Enter the tax from line 2 of this form.

Line 15.	
Divide the amount on line 13 of this form by the
amount on line 1. Carry this Maryland nonresident
factor to six decimal places.
If more than
1.000000, enter 1.000000. If 0 or less, enter 0.
Line 16.	
Multiply line 14 by line 15 to arrive at your
Maryland tax. Enter this amount on line 16 and
on Form 505, line 32a or Form 515, line 33.
Line 17.	
Multiply line 13 by 0.0225. Enter this amount on
line 17 and on Form 505, line 32b. If line 13 is
0 or less, enter 0.
On Form 505, add lines 32a, 32b, and 32c and enter the total
on line 32d.
Note: If you are using Form 505NR with Form 505, follow
the instructions above. If you are using Form 505NR with
Form 515, follow Instruction 18 in the Form 515
instructions.