Maryland Declaration of Estimated Pass-Through Entity Tax

Declaration of Estimated Pass-Through Entity Tax
510_511D 122222 A
MARYLAND FORM

510/511D

2023

PASS-THROUGH ENTITY
DECLARATION OF
ESTIMATED INCOME TAX

OR FISCAL YEAR BEGINNING	

2023, ENDING	

Federal Employer Identification Number (9 digits)

Name

Print Using Blue or Black Ink Only

Current Mailing Address Line 1 (Street No. and Street Name or PO Box)

Current Mailing Address Line 2 (Apt No., Suite No., Floor No.)

City or town	

State	

ZIP Code	

+4

Foreign Country Name	

For Office Use Only

ME

Foreign Province/State/County	

YE

EC

EC

STAPLE CHECK HERE

Foreign Postal Code

USE THIS FORM TO REMIT ANY ESTIMATED PAYMENT DUE AT THIS TIME. IF FORMS ARE NEEDED TO MAKE
ADDITIONAL INSTALLMENTS OF THE CURRENT TAX YEAR, SEE THE INSTRUCTIONS FOR MORE INFORMATION.
TYPE OF ENTITY - Check the applicable box.
	

S Corporation	

Partnership	

Limited Liability Company	

Business Trust

IMPORTANT: Review the instructions before completing this form. If you are using this form for subsequent estimated payments,
you do not need to complete this worksheet if you previously have calculated the amount you need to pay each quarter.
Check here if you are a first time filer or your mailing address has changed.
Check here if PTE has made the irrevocable election for Tax Year 2023 to remit tax with respect to all
members' shares.
ESTIMATED TAX WORKSHEET
1. Taxable income of nonresident individual members (including fiduciaries)
expected for the tax year BEGINNING in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.
2. Estimated income tax liability (5.75% of line 1.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Special nonresident tax/local tax (2.25% of line 1.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Taxable income of nonresident entities expected for the tax year BEGINNING in 2023 . . . . . . . . 4.
5. Estimated tax liability (8.25% of line 4.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. Taxable income of resident individual members (including fiduciaries) expected for the tax year
BEGINNING in 2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7. Estimated income tax liability (5.75% of line 6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7.
8. Resident Local Income Tax (2.25% of line 6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.
9. Taxable income of resident entities expected for tax year BEGINNING in 2023. . . . . . . . . . . . . . . 9.
	10. Estimated tax liability (8.25% of line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10.
	11. Estimated tax due for the year (Add lines 2, 3, 5, 7, 8 and 10.). . . . . . . . . . . . . . . . . . . . . . . . .  11.
	12. Estimated tax due per quarter (Line 11 divided by four.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12.
Estimated tax paid for 2023 with this declaration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

COM/RAD-073

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MARYLAND FORM

510/511D

Purpose of Form  Form 510/511D is used by a pass-through
entity (PTE) to declare and remit estimated tax for nonresidents. The PTE may elect to declare and remit estimated tax
on behalf of resident members.
Election to Pay Tax for All Members at the Entity Level
Effective July 1, 2021, PTEs may elect to pay tax for all members at the entity level. For electing PTEs, the tax is the top
marginal state tax of 5.75% plus the lowest local income tax
rate of 2.25% of members’ pass-through entity taxable
income. For entity members the tax is 8.25% of the electing
PTEs taxable income.
For tax years beginning after December 31, 2022,
the election must be made, if at all, with the first
estimated tax payment of the tax year. The election made with the first estimated payment is irrevocable. Once the election to remit tax at the entity level with
respect to all members' shares is made for the tax year, this
box must be checked with all subsequent declaration payments. For more information, see Administrative Release 6.
General Requirements  PTEs are required to pay tax on
behalf of all nonresident members. For nonresident members
that are individuals or nonresident fiduciaries, the tax is
5.75% in addition to the special nonresident tax of 2.25% of
the nonresident member’s distributive or pro rata share of
income. For nonresident entity members, the tax is 8.25% of
the nonresident member’s distributive or pro rata share of
income. A nonresident entity is an entity that is not formed
under the laws of Maryland; and is not qualified by, or registered with the Department of Assessments and Taxation to do
business in Maryland. The amount of tax due may be limited
based on the distributable cash flow limitation. The
Distributable Cash Flow Limitation worksheet is available in
our PTE income tax instructions, which can be downloaded at
www.marylandtaxes.gov.
Certain PTEs meeting certain reporting requirements are
exempt from the requirement to pay nonresident tax on behalf
of their nonresident members. See instructions for Form 510
for more information.
When the tax is expected to exceed $1,000 for the tax year,
the PTE must make quarterly estimated payments. The total
estimated tax payments for the year must be at least 90% of
the tax developed for the current tax year or 110% of the tax
that was devel­oped for the prior tax year to avoid interest and
penalty.
In the case of a short tax period, the total estimated tax
required is the same as for a regular tax year: 90% of the tax
that was developed for the current (short) tax year or 110%
of the tax that was developed for the prior tax year. The minimum estimated tax for each of the installment due dates is
the total estimated tax required divided by the number of
installment due dates occurring during the short tax year.
However, if the pass-through entity has a short tax period of
less than 4 months, it does not have to pay estimated tax nor
file Form 510/511D.
Maryland law provides for the accrual of interest and imposition of penalty for failure to pay any tax when due.
If it is necessary to amend the estimate, recalculate the
amount of estimated tax required using the estimated tax
worksheet provided. Adjust the amount of the next installment
to reflect any previous underpayment or overpayment. The
remaining installments must be at least 25% of the amended
estimated tax due for the year.

COM/RAD-073

2023

PASS-THROUGH ENTITY
DECLARATION OF ESTIMATED
INCOME TAX INSTRUCTIONS

The PTE must issue a statement (Maryland Schedule K-1
(510/511)) to each member showing the amount of tax paid
for the members or on their behalf. Members must include the
statement with their own income tax returns (Form 500, 502,
504, 505, 511, or 510) to claim credit for taxes paid.
When to File  File Form 510/511D on or before the 15th day
of the 4th, 6th, 9th and 12th months following the beginning
of the tax year or period for S corporations or by the 4th, 6th,
9th and 13th months following the beginning of the tax year
for partnerships, LLCs and business trusts.
Tax Year or Period  The tax year is shown at the top of
Form 510/511D. The form used for filing must reflect the preprinted tax year in which the PTE’s tax year begins.
If the tax year of the PTE is other than a calendar year, enter
the beginning and ending dates of the fiscal year in the space
provided at the top of Form 510/511D.
Name, Address, and Other Information  Type or print the
required information in the designated area.
Enter the exact PTE name with any “Trading As” (T/A) name if
applicable.
Enter the Federal Employer Identification Number (FEIN). If
the FEIN has not been secured, enter “APPLIED FOR” followed
by the date of application. If a FEIN has not been applied for,
do so immediately.
Filing electronically using Modernized Electronic Filing
method (MeF) (software provider must be approved by the
IRS and Revenue Administration Division). If filed electronically, do not mail 510/511D; retain it with company’s
records.
If you need to make additional payments for the current tax
year you may file electronically or visit
www.marylandtaxes.gov and download another Form
510/511D.
Payment Instructions Include a check or money order made
payable to Comptroller of Maryland. All payments must
indicate the FEIN, type of tax and tax year beginning and ending dates. DO NOT SEND CASH.
Mailing Instructions  Mail the completed Form 510/511D
and payment to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411-0001