Maryland Maryland Tax Forms & Instruction Booklet for Nonresidents

Maryland Tax Forms & Instruction Booklet for Nonresidents
2023 505 Nonresident Income Tax Return Instructions
MARYLAND

2023

NONRESIDENT TAX FORMS & INSTRUCTIONS
For filing personal income taxes for nonresident individuals

Brooke E. Lierman, Comptroller

Scan to check your refund
status after filing.

INSTRUCTION	
	

PAGE

NEW FOR 2023
New Subtraction Modifications: There are 2 subtraction
modification that have been updated and one new subtraction
modification. For more information, see Instruction 13 (Line
23, Code Letters va. and yb).

Filing Information. . . . . . . . . . . . . . . . . . . . . . . . . i - ii

1.	 WHAT FORM TO FILE?. . . . . . . . . . . . . . . . . . . . . . . . 1
2.	 NONRESIDENT, RESIDENT AND PART-YEAR RESIDENT.1

New Addition Modifications: There are no new addition
modifications.

3.	 WHAT INCOME IS TAXABLE OR REPORTABLE. . . . . . . . 1

Tax Credits (individual/business): There are two new tax
credits and two that have been updated. See Instruction 20.

4.	 WHO MUST FILE?. . . . . . . . . . . . . . . . . . . . . . . . . . . 1
5.	 USE OF FEDERAL RETURN. . . . . . . . . . . . . . . . . . . . . 2

House Bill 002: This bill allows a subtraction modification
for the amount of union dues paid by an individual during the
taxable year if the amount was allowable as a federal itemized
deduction prior to 2018. Note: Nonresidents may not claim
this subtraction if the dues are attributable to an occupation,
profession, or trade carried on wholly outside of Maryland.

6.	 NAME AND ADDRESS . . . . . . . . . . . . . . . . . . . . . . . . 2
7.	

SOCIAL SECURITY NUMBER. . . . . . . . . . . . . . . . . . . 3

8.	 FILING STATUS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
9.	 RESIDENCE INFORMATION . . . . . . . . . . . . . . . . . . . . 4

House Bill 0180/ Senate Bill 141: This bill increases the
maximum subtraction amount for adoption expenses.

10.	EXEMPTIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Senate Senate Bill 0452: This bill alters the Film Production Tax Credit by expanding eligible production activities and
eligible costs.

11.	 INCOME AND ADJUSTMENTS. . . . . . . . . . . . . . . . . . . 4
12.	 ADDITIONS TO INCOME . . . . . . . . . . . . . . . . . . . . . . 5

House Bill 584: This bill increases the amount of the credit
for food donations by qualified farms.

13.	 SUBTRACTIONS FROM INCOME. . . . . . . . . . . . . . . . . 6
14.	 ADJUSTED GROSS INCOME FACTOR. . . . . . . . . . . . . . 8

House Bill 680: This bill extends the time period allowed to
use the Student Loan Debt Relief Tax Credit for repayment of
student loans to 3 years.

15.	 STANDARD DEDUCTION . . . . . . . . . . . . . . . . . . . . . . 9
16.	 ITEMIZED DEDUCTIONS. . . . . . . . . . . . . . . . . . . . . . 9

House Bill 1074 / Senate Bill 624: This bill allows a taxpayer who owns a restaurant in Maryland to claim a credit
for a portion of the cost of purchasing an automated external
defibrillator for use at the restaurant.

17.	 EXEMPTION ALLOWANCE COMPUTATION . . . . . . . . . . 9
18.	 FIGURE YOUR MARYLAND TAXABLE INCOME. . . . . . . . 9
19.	 FIGURE YOUR MARYLAND TAX. . . . . . . . . . . . . . . . . . 9
20.	 POVERTY LEVEL AND OTHER CREDITS FOR
INDIVIDUALS AND BUSINESSES . . . . . . . . . . . . . . . 10
21.	 TOTAL MARYLAND TAX AND CONTRIBUTION. . . . . . . 11
22.	 TAXES PAID AND REFUNDABLE CREDITS . . . . . . . . . 11
23.	 OVERPAYMENT OR BALANCE DUE. . . . . . . . . . . . . . . 12
24.	 TELEPHONE NUMBERS, CODE NUMBERS,
SIGNATURES AND ATTACHMENTS . . . . . . . . . . . . . . 13
25.	 ELECTRONIC AND PC FILING, MAILING AND
PAYMENT INSTRUCTIONS AND DEADLINES. . . . . . . . 13
26.	 FISCAL YEAR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
27.	 SPECIAL INSTRUCTIONS FOR MILITARY TAXPAYERS . 14
28.	 PART-YEAR RESIDENTS. . . . . . . . . . . . . . . . . . . . .  15
29.	 PASS-THROUGH ENTITIES. . . . . . . . . . . . . . . . . . .  15
30.	 FILING RETURN OF DECEASED TAXPAYER. . . . . . . . . 15
31.	 AMENDED RETURNS. . . . . . . . . . . . . . . . . . . . . . . . 16
• TAX TABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
• TAX COMPUTATION WORKSHEET SCHEDULES . . . . . 20

Use blue or black ink when completing your forms and
checks.

DUE DATE: MONDAY, APRIL 15, 2024
For free Maryland tax help visit
marylandtaxes.gov
or call 1-800-638-2937
or from Central Maryland 410-260-7980
February 1 - April 18, 2024
8:30 a.m. until 6:00 p.m., Monday through Friday
Email tax questions anytime to:
[email protected]

To avoid delays in the processing of your return:
• Do not use pencil or ink of any other color.
• Do not print returns on colored paper.
• Do not write on, staple or punch holes in the
barcode.

i

Electronic Filing Options:

https://interactive.marylandtaxes.gov/Individuals/
Payment/. The amount you designate will be debited from
your bank or financial institution on the date that you choose.

●	 Go Green! eFile saves paper. In addition, you will receive
your refund faster, receive an acknowledgement that your
return has been received, and if you owe - you can extend
your payment date until April 30th if you both eFile and make
your payment electronically.

●	 ALTERNATIVE PAYMENT METHODS: For alternative methods of payment, such as a credit card, visit
marylandtaxes.gov.

●	 Security: Your information is transmitted securely when you
choose to file electronically. It is protected by several security
measures such as multiple firewalls, state of the art threat
detection and encrypted transmissions.

●	 For Administrative Releases: Visit
https://www.marylandtaxes.gov/pros/admin-releases/index.php
●	 Estimated tax payments: You may file and pay your
2023 estimated taxes electronically. When you use our iFile
program, we give you the ability to make a single estimated
tax payment, as well as providing the convenience of scheduling all of your payments at one time. These scheduled
payments will be deducted from your bank account on the
dates that you specify. Visit
https://www.marylandtaxes.gov/individual/taxcompliance/estimated-tax-payments-for-ind.php

●	 PC Retail Software: Check the software requirements to
determine eFile eligibility before you purchase commercial
off-the-shelf software. Use software or link directly to a provider site to prepare and file your return electronically.
Read this before filling out your forms
●	 eFile: Ask your professional tax preparer to eFile your return. You may use any tax professional who participates in
the Maryland Electronic Filing Program. To obtain a list of approved Maryland Software Providers, please visit marylandtaxes.gov..

Additional Information:
●	 Need an extension? If you don’t owe additional tax and requested an extension of time to file your federal return, you
don’t need to request a separate Maryland extension – it’s
automatic. If you do not qualify for the automatic extension,
make your request online at https://www.marylandtaxes.gov/individual/tax-compliance/estimated-taxpayments-for-ind.php or TeleFile your extension request
by calling 410-260-7829.

●	 IRS Free File: Free Internet filing is available for federal
income tax returns, however, some income limitations may
apply. Visit www.irs.gov for eligibility.
●	 Fees for state tax returns also may apply.
●	 Payment Options: Payment by electronic funds withdrawal (direct debit) is available if you file electronically. If you
choose this option, you have until April 30th to make your
payment.

●	 You can contribute to four programs on your return:
The Chesapeake Bay and Endangered Species Fund, the
Developmental Disabilities Services and Support Fund, the
Maryland Cancer Fund, and the Fair Campaign Financing
Fund.

●	 Bill Pay Electronic Payments: If your paper or electronic
tax return has a balance due, you may pay electronically at
Privacy act information
The Tax-General Article of the Annotated Code of Maryland
authorizes the Comptroller of Maryland to request information
on tax returns to administer the income tax laws of Maryland,
including determination and collection of correct taxes. Code
Section 10-804 provides that you must include your Social
Security Number on the return you file. This is so we know
who you are and can process your return and papers. If you
fail to provide all or part of the requested information, then
exemptions, exclusions, credits, deductions or adjustments
may be disallowed and you may owe more tax. In addition,
the law provides penalties for failing to supply information
required by law or regulations.

You may look at any records held by the Comptroller of Maryland which contain personal information about you. You may
inspect such records, and you have certain rights to amend
or correct them.
As authorized by law, information furnished to the Comptroller of Maryland may be given to the United States Internal
Revenue Service, a proper official of any state that exchanges
tax information with Maryland and to an officer of this State
having a right to the information in that officer’s official capacity. The information may be obtained in accordance with a
proper legislative or judicial order.

Fair Campaign Financing Fund
A government of the People, By people
and For the people starts here.
It is easy to participate in our democracy:
1.	 Donate to the Fair Campaign Financing Fund when you file your taxes.
2.	 Donations of any dollar amount can be made.
Use Line 38 on Form 502 or Line 41 on Form 505 or Line 25
on Form 504.
Your contribution will be deducted from your tax refund or
added to your tax payment.
Only for gubernatorial campaigns.
www.elections.maryland.gov
ii

MARYLAND
FORM

505

2023

NONRESIDENT INCOME TAX
RETURN INSTRUCTIONS

DUE DATE
Your return is due by April 15, 2024. If you are a fiscal year
taxpayer, see Instruction 26. If any due date falls on a Saturday,
Sunday or legal holiday, the return must be filed by the next
business day.

Free internet filing is available for Maryland income tax returns.
Visit marylandtaxes.gov/online-services/individuals.php
and select iFile.
Software vendors and preparers should refer to the e-file
handbook for their instructions.

COMPLETING THE RETURN
You must write legibly using blue or black ink when completing
your return. DO NOT use pencil or red ink. Submit the original
return, not a photocopy. If no entry is needed for a specific line,
leave blank. Do not enter words such as “none” or “zero” and do
not draw a line to indicate no entry. If you do not follow these
instructions, you may cause a delay in the processing of your
return.

SUBSTITUTE FORMS
You may file your Maryland income tax return on a computerprepared or computer-generated substitute form provided the
form is approved in advance by the Revenue Administration
Division. The fact that a software package is available for retail
purchase does not guarantee that it has been approved for use.
For additional information or to see a list of Approved
Software Vendors for Maryland Substitute forms visit
marylandtaxes.gov/pros/approved-vendors.php.

You may round off all cents to the nearest whole dollar. Fifty
cents and above should be rounded to the next higher dollar.
To speed up the processing of your tax refund, consider filing
electronically. You must file within three years of the original
due date to receive any refund. For more information, visit
marylandtaxes.gov.

PENALTIES
There are severe penalties for failing to file a tax return, failing
to pay any tax when due, filing a false or fraudulent return, or
making a false certification. Penalties may include civil fines,
criminal fines, and imprisonment. In addition, interest is charged
on amounts not paid.

ELECTRONIC FILING INSTRUCTIONS
The instructions in this booklet are designed specifically for
filers of paper returns. If you are filing electronically and these
instructions differ from the instructions for the electronic method
being used, you should comply with the instructions for that
method.

1	

To collect unpaid taxes, the Comptroller is authorized to seize
the salary, wages, or property of delinquent taxpayers.

2	

What Form to file?

IF YOU ARE A:
Taxpayer whose permanent home
(domicile) is a state other than Maryland,
you are a nonresident, unless you are a
statutory resident.

Taxpayer who began or ended legal
residence in Maryland during the tax
year, you must file as a resident for
that portion of the year during which you
maintained Maryland residence, even if
less than six (6) months.

Form 502
Resident Return

Taxpayer who moved into or out of
Maryland during the tax year and received
income from Maryland sources while you
were a nonresident of Maryland.

You are a resident if your permanent home is in Maryland (the
law refers to this as your domicile) or your home is outside
Maryland but you maintained a place of abode (that is a place
to live) in Maryland for more than six (6) months (183 days) of
the tax year and you are physically present in Maryland for 183
days or more (you are a statutory
­­­­­
resident).

Form 505
Nonresident
Return

Form 502
Resident Return

Nonresident of Maryland but received
salary, wages or other compensation
for personal services performed in any
Maryland county or Baltimore City and you
lived in a jurisdiction that imposes a local
or earnings tax on Maryland residents.
NOTE: If you have other income subject to
Maryland tax, you must also file Form 505.
(For further information and forms, call
410-260-7980.)

You are a nonresident if you are not a resident under any
of the conditions listed below:

YOU SHOULD
FILE:

Taxpayer who maintains a place of abode
(that is, a place to live) for more than six
(6) months of the tax year in Maryland and
you are physically present in Maryland for
183 days or more, you are a statutory
resident.

Nonresident, resident and part-year
resident.

You are a part-year resident if you established or abandoned
legal residence during the tax year.
If you are an active duty military member, see Instruction 27.

3	

What income is taxable or reportable?

A nonresident individual is subject to tax on that portion of
the federal adjusted gross income that is derived from tangible
property, real or personal, permanently located in Maryland
(whether received directly or from a fiduciary) and on income
from a business, trade, profession or occupation carried on in
Maryland and on all gambling winnings derived from Maryland
sources. Adjustments to federal gross income and losses not
allocable to Maryland may not be used to reduce Maryland
income. You are required to file even if the net Maryland income
is a loss.

Form 515
Nonresident
Local Tax
Return

4	

Form 505
Nonresident
Return and
Form 502
Resident Return

Who must file?

In general, you must file this return if:
•	 You are a nonresident of Maryland,
•	 AND, you are required to file a federal return based upon
the income levels in Table 1 or 2,
•	 AND, you received income from sources within Maryland.

1

to indicate your withholding was withheld in error. Enter
your federal adjusted gross income on line 17 in both columns 1
and 3 and line 24. Then complete lines 43-47, 49 and 51.

Remember, if your federal gross income is more than the federal
minimum filing requirement for your filing status, you are
required to file a Maryland return, even if the income attributable
to Maryland is less than the federal filing requirement.

Sign the return and attach withholding statements (Forms W-2
and/or 1099) showing the Maryland tax withheld equal to the
refund you are claiming.

MINIMUM FILING LEVEL TABLES
TABLE 1
MINIMUM FILING LEVELS FOR TAXPAYERS UNDER 65
Single person (including dependent taxpayers) . . 13,850
Joint Return . . . . . . . . . . . . . . . . . . . . . . . . . . .  27,700
Married persons filing separately . . . . . . . . . . . . 13,850
Head of Household . . . . . . . . . . . . . . . . . . . . . . 20,800
Qualifying Surviving Spouse . . . . . . . . . . . . . . . .27,700

Your return is then complete. You must file within three years of
the original due date to receive any refund.

5	

Use of federal return.

First complete your 2023 federal income tax return and
schedules.

TABLE 2
MINIMUM FILING LEVELS FOR TAXPAYERS 65 OR OVER
Single, age 65 or over . . . . . . . . . . . . . . . . . . . . 15,700
Joint Return, one spouse, age 65 or over. . . . . . . 29,200
Joint Return, both spouses, age 65 or over . . . . . 30,700
Married persons filing separately, age 65 or over. 13,850
Head of Household, age 65 or over. . . . . . . . . . . 22,650
Qualifying Surviving Spouse, age 65 or over . . . . 29,200

You will need the information from your federal return in order
to complete your Maryland return. Therefore, complete your
federal return before you continue beyond this point. Maryland
law requires that your income and deductions be entered
on your Maryland return exactly as they were reported on
your federal return. If you use a federal Form 1040NR, visit
marylandtaxes.gov/individual/income/filing/index.
php. All items reported on your Maryland return are subject
to verification, audit and revision by the Maryland State
Comptroller’s Office.

TO DETERMINE IF YOU ARE REQUIRED TO FILE A
MARYLAND RETURN

6	

a.	Add up all of your federal gross income to determine your
total income. Gross income is defined in the Internal Revenue
Code and, in general, consists of all income from any source.
It includes wages and other compensation for services, gross
income derived from business, gains (not losses) derived from
dealings in property, interest, rents, royalties, dividends,
alimony, annuities, pensions, income from partnerships or
fiduciaries, etc. If any modification or deduction reduces
your gross income below the minimum filing level, you are
still required to file. IRS Publication 525 provides additional
information on taxable and nontaxable income.

Name, address, county, city, town
information.

Complete the name and address lines at the top of Form
505.
Name: Be sure to use your full legal name. This should match
the name that appears on your Social Security card.
Current Address: Enter your current address using the spaces
provided. On Current Mailing Address Line 1, enter the street
number and street name of your current address. If using a PO
Box address, enter “PO Box” and the PO Box number on Current
Mailing Address Line 1.

b.	Do not include Social Security or railroad retirement benefits
in your total income.

On Current Mailing Address Line 2, if applicable, enter the floor,
suite, or apartment number for your current mailing address. If
using a PO Box address, leave Current Mailing Address Line 2
blank. Enter City or Town, State and ZIP Code +4.

c.	Add to your total income any Maryland additions to income.
Do not include any additions related to non-Maryland income
or loss. (See Instruction 12.) This is your Maryland gross
income.

If using a foreign address, complete the lines indicated
for Country Name, Province/State/County, and Postal
Code.

d.	If you are a dependent taxpayer, add to your total income any
Maryland additions and subtract any Maryland subtractions
and non-Maryland Income. (See Instructions 12 and 13.)
This is your Maryland gross income.

Fill in the area for MARYLAND COUNTY and CITY, TOWN OR
TAXING AREA based on where in Maryland you were employed
on the last day of the tax period if you earned wages in Maryland
(December 31, 2023 for calendar year taxpayers).

e.	You must file a Maryland return if your Maryland gross income
equals or exceeds the income levels in Table 1.

IF YOU WORKED IN BALTIMORE CITY:

f.	If you or your spouse is 65 or over, use Table 2, “Minimum
Filing Levels for Taxpayers 65 or over.”

Leave the MARYLAND COUNTY line blank. Write “Baltimore
City” on the CITY, TOWN OR TAXING AREA line.

IF YOU ARE A NONRESIDENT, YOU ARE NOT REQUIRED
TO FILE A MARYLAND RETURN IF:

IF YOU WORKED
BALTIMORE CITY):

•	 Your Maryland gross income is less than the minimum filing
level for your filing status; OR

IN

A

MARYLAND

COUNTY

(NOT

1.	 Write the name of the county on the MARYLAND COUNTY
line.

•	 You had no income from Maryland sources; OR

2.	 If you worked in one of the taxing areas in a Maryland county, write its name on the CITY, TOWN OR TAXING AREA line.

•	 You reside in the District of Columbia, Virginia or West Virginia
and had only wages from Maryland. See Instruction 11 for
additional information; OR

3.	 If you did not work in one of the taxing areas within a Maryland county, leave the CITY, TOWN OR TAXING AREA blank.

•	 You reside in a local jurisdiction in Pennsylvania, which does
not impose an income or earnings tax against Maryland
residents, and had only wages from Maryland. See Instruction
11 for additional information.

	

MARYLAND TAX WITHHELD IN ERROR
If Maryland tax was withheld from your income, you must
file to obtain a refund of the withholding. Complete all of the
information at the top of the form through the filing status,
residence information and exemption areas. Check the box
provided to the right of the residence information for you
2

For a list of the localities within Maryland, see the LIST OF
INCORPORATED CITIES, TOWNS AND TAXING AREAS
IN MARYLAND.

7	

Social Security Number(s) (SSN).

for legal adoption and you do not know their SSN, you must
get an Adoption Taxpayer Identification Number (ATIN) for the
dependent from the IRS.

It is important that you enter each digit of your Social
Security number in the space provided at the top of your
tax return. Missing or unreadable digits will delay the
processing of your return. Your name must match the
name on your current Social Security card to ensure you
receive your personal exemption. If your name does not
match the name on your Social Security card, contact the
federal Social Security Administration at 800-722-1213,
or visit ssa.gov.

If your child was born and died in this tax year and you do
not have a SSN for the child, complete just the name and
relationship of the dependent and enter code 322, in one of
the code number boxes located on page 3 of the form; attach a
copy of the child’s death certificate to your return.

8	

Filing status.

Check the filing status box that matches the filing
status you used on your federal return unless you are a
dependent taxpayer.

The Social Security number(s) must be a valid number issued
by the Social Security Administration of the United States
Government. If you, your spouse, or your dependent do not
have a SSN, and are not eligible to get a SSN, you must apply
for an Individual Tax Identification Number (ITIN) with
the IRS and you should wait until you have received it
before you file. Enter it wherever your SSN is requested
on the return.

If another taxpayer claims you as a dependent on their tax
return, your filing status is dependent taxpayer. If married,
the dependent taxpayer and spouse must file separate returns.
A dependent taxpayer may not claim a personal exemption.
Check the box for filing status 6.

A missing or incorrect SSN or ITIN could result in the
disallowance of any credits or exemptions you may be entitled
to and result in a balance due.

Generally, if you filed a joint federal return for 2023, you must
file a joint Maryland return. Married couples who file joint
federal returns may file separate Maryland returns when one
spouse is a resident of Maryland and the other spouse is a
nonresident of Maryland.

A valid SSN or ITIN is required for any claim or exemption for a
dependent. If you have a dependent who was placed with you

LIST OF INCORPOR ATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND
Political Subdivision Code

Political Subdivision Code

Political Subdivision Code

Political Subdivision Code

Political Subdivision Code

ALLEGANY
COUNTY . . . . . . .  .0100
Town of Barton . . . . . .  0101
Bel Air . . . . . . . . . . . .  0112
Bowling Green  . . . . . .  0115
Cresaptown  . . . . . . . .  0108
City of Cumberland . . .  0102
Ellerslie . . . . . . . . . . .  0113
City of Frostburg . . . . .  0103
LaVale . . . . . . . . . . . .  0110
Town of Lonaconing . . .  0104
Town of Luke  . . . . . . .  0105
McCoole . . . . . . . . . . .  0114
Town of Midland  . . . . .  0106
Mt. Savage . . . . . . . . .  0111
Potomac Park . . . . . . .  0109
Town of Westernport . .  0107

Town of Manchester . . .  0702
Town of Mt. Airy . . . . .  0703
Town of New Windsor  .  0704
Town of Sykesville . . . .  0705
City of Taneytown . . . .  0706
Town of Union Bridge . .  0707
City of Westminster . . .  0709

GARRETT COUNTY . .  1200
Town of Accident . . . . .  1201
Town of Deer Park . . . .  1203
Town of Friendsville . . .  1204
Town of Grantsville . . .  1205
Town of Kitzmiller . . . .  1206
Town of Loch Lynn
Heights  . . . . . . . . .  1207
Town of Mountain
Lake Park . . . . . . . .  1208
Town of Oakland . . . . .  1209

Town of Oakmont  . . . .  1619
Town of Poolesville  . . .  1608
City of Rockville  . . . . .  1609
Town of Somerset . . . .  1610
City of Takoma Park . . . 1611
Town of Washington
Grove  . . . . . . . . . .  1612

ST. MARY’S
COUNTY . . . . . . . .  1900
Town of Leonardtown . .  1902

ANNE ARUNDEL
COUNTY . . . . . . . .  0200
City of Annapolis . . . . .  0201
Town of Highland
Beach  . . . . . . . . . .  0203
BALTIMORE
COUNTY . . . . . . . .  0300
(No incorporated cities or
towns)
BALTIMORE CITY . . .  0400
CALVERT
COUNTY . . . . . . . .  0500
Town of Chesapeake
Beach  . . . . . . . . . .  0501
Town of North Beach . .  0502
CAROLINE
COUNTY . . . . . . . .  0600
Town of Denton . . . . . .  0602
Town of Federalsburg . .  0603
Town of Goldsboro . . . .  0604
Town of Greensboro  . .  0605
Town of Henderson . . .  0611
Town of Hillsboro . . . . . 0606
Town of Marydel . . . . .  0607
Town of Preston  . . . . .  0608
Town of Ridgely  . . . . .  0609
Town of Templeville . . .  0610
CARROLL
COUNTY . . . . . . . .  0700
Town of Hampstead . . .  0701

CECIL COUNTY . . . . .  0800
Town of Cecilton . . . . .  0801
Town of Charlestown . .  0802
Town of Chesapeake
City . . . . . . . . . . . .  0803
Town of Elkton  . . . . . .  0804
Town of North East  . . .  0805
Town of Perryville . . . .  0806
Town of Port Deposit . .  0807
Town of Rising Sun . . .  0808
CHARLES
COUNTY . . . . . . .  .0900
Town of Indian Head . .  0901
Town of La Plata . . . . .  0902
Port Tobacco Village . . . 0903
DORCHESTER
COUNTY . . . . . . . .  1000
Town of Brookview  . . .  1008
City of Cambridge . . . .  1001
Town of Church Creek .  1002
Town of East
New Market  . . . . . .  1003
Town of Eldorado  . . . .  1007
Town of Galestown  . . .  1009
Town of Hurlock  . . . . .  1004
Town of Secretary . . . .  1005
Town of Vienna . . . . . .  1006
FREDERICK
COUNTY . . . . . . .  .1100
City of Brunswick  . . . .  1101
Town of Burkittsville  . .  1102
Town of Emmitsburg . .  1103
City of Frederick . . . . .  1104
Town of Middletown . . .  1106
Town of Mt. Airy . . . . .  1114
Town of Myersville . . . .  1107
Town of New Market  . .  1108
Village of Rosemont . . .  1113
Town of Thurmont . . .  .1110
Town of Walkersville  .  .1111
Town of Woodsboro . .  .1112

HARFORD COUNTY . .  1300
City of Aberdeen . . . . .  1301
Town of Bel Air . . . . . .  1302
City of Havre de Grace .  1303
HOWARD COUNTY . .  1400
(No incorporated cities or
towns)
KENT COUNTY . . . . .  1500
Town of Betterton . . . .  1501
Town of Chestertown . .  1502
Town of Galena . . . . . .  1503
Town of Millington . . . .  1504
Town of Rock Hall . . . .  1505
MONTGOMERY
COUNTY . . . . . . . .  1600
Town of Barnesville . . .  1601
Town of Brookeville . . .  1602
Town of Chevy Chase . . 1615
Section 3 of the Village
of Chevy Chase . . . .  1614
Section 5 of the Village
of Chevy Chase . . . .  1616
Town of Chevy
Chase View  . . . . . .  1617
Chevy Chase Village  . .  1613
Village of Drummond . .  1623
Village of Friendship
Heights  . . . . . . . . .  1621
City of Gaithersburg  . .  1603
Town of Garrett Park . .  1604
Town of Glen Echo . . . .  1605
Town of Kensington . . .  1606
Town of Laytonsville  . .  1607
Village of Martin’s
Additions . . . . . . . .  1622
Village of North
Chevy Chase  . . . . .  1618

3

PRINCE GEORGE’S
COUNTY . . . . . . . .  1700
Town of Berwyn
Heights  . . . . . . . . .  1701
Town of Bladensburg . .  1702
City of Bowie  . . . . . . .  1704
Town of Brentwood . . .  1705
Town of Capitol Heights 1706
Town of Cheverly  . . . .  1707
City of College Park . . .  1725
Town of Colmar Manor .  1708
Town of Cottage City . .  1709
City of District Heights .  1710
Town of Eagle Harbor . . 1711
Town of Edmonston . . .  1712
Town of Fairmount
Heights  . . . . . . . . .  1713
Town of Forest Heights 1728
City of Glenarden  . . . .  1730
City of Greenbelt . . . . .  1714
City of Hyattsville . . . .  1715
Town of Landover Hills .  1726
City of Laurel . . . . . . .  1716
Town of Morningside . .  1727
City of Mt. Rainier . . . .  1717
City of New Carrollton .  1729
Town of North
Brentwood . . . . . . .  1718
Town of Riverdale Park 1720
City of Seat Pleasant . .  1721
Town of University Park 1723
Town of Upper Marlboro 1724
QUEEN ANNE’S
COUNTY . . . . . . . .  1800
Town of Barclay  . . . . .  1805
Town of Centreville . . .  1801
Town of Church Hill . . .  1802
Town of Millington . . . .  1808
Town of Queen Anne . .  1807
Town of Queenstown . .  1803
Town of Sudlersville . . .  1804
Town of Templeville . . .  1806

SOMERSET
COUNTY . . . . . . . .  2000
City of Crisfield . . . . . .  2001
Town of Princess Anne .  2002
TALBOT
COUNTY . . . . . . . .  2100
Town of Easton . . . . . .  2101
Town of Oxford . . . . . .  2102
Town of Queen Anne . .  2105
Town of St. Michaels . .  2103
Town of Trappe . . . . . .  2104
WASHINGTON
COUNTY . . . . . . . .  2200
Town of Boonsboro . . .  2201
Town of Clearspring . . .  2202
Town of Funkstown . . .  2203
City of Hagerstown . . .  2204
Town of Hancock . . . . .  2205
Town of Keedysville . . .  2206
Town of Sharpsburg . . . 2207
Town of Smithsburg . . .  2208
Town of Williamsport . .  2209
WICOMICO
COUNTY . . . . . . . .  2300
Town of Delmar . . . . . . 2301
City of Fruitland  . . . . .  2308
Town of Hebron . . . . . .  2302
Town of Mardela
Springs  . . . . . . . . .  2303
Town of Pittsville . . . . .  2307
City of Salisbury . . . . .  2304
Town of Sharptown . . .  2305
Town of Willards . . . . .  2306
WORCESTER
COUNTY . . . . . . . . . 2400
Town of Berlin . . . . . . .  2401
Town of Ocean City . . .  2402
Pocomoke City  . . . . . .  2403
Town of Snow Hill . . . .  2404

If you and your spouse filed separate federal returns you must
file separate Maryland Returns. If you filed a federal return
with the qualifying surviving spouse status, you must file your
Maryland return with the qualifying surviving spouse status.

9	

Enter the number of exemptions in the appropriate boxes based
upon your entries in parts A, B, and C of the exemption area of
the form. Enter the total number of exemptions in Part D. For
Form 505, the number of exemptions for Part C is from
Total Dependent Exemptions, Line 3 of Form 502B.

Residence information.

NOTE: Form 502B must be completed and attached to Form
505 if you are claiming dependents.

Answer ALL the questions and fill in the appropriate boxes.
Enter the appropriate two-letter code from the table in
the space provided for your state of legal residence. Also
list the County and City, Borough or Township (or other
local taxing jurisdiction) in which you live.

PART-YEAR RETURNS
If you are required to file both a resident and nonresident
return for tax year 2023, each exemption is limited to a total
of $3,200. Your exemptions must be prorated on the resident
return and nonresident return based on Maryland income. For
more information, see Instruction 28.

Your state of legal residence is your domicile or permanent
home. It is the place you intend to return to after temporary
absences. You do not change or abandon a domicile until you
establish a new domicile in another state. Military personnel
retain their states of legal residence until they take specific
action to change the state. Duty assignments alone do not affect
legal residence. For additional information, see Administrative
Release 37.
Alabama - AL
Alaska - AK
Arizona - AZ
Arkansas - AR
California - CA
Colorado - CO
Connecticut - CT
Delaware - DE
Florida - FL
Georgia - GA
Hawaii - HI
Idaho - ID
Illinois - IL
Indiana - IN
Iowa - IA
Kansas - KS
Kentucky - KY
Louisiana - LA
Maine - ME
Massachusetts - MA

Michigan - MI
Minnesota - MN
Mississippi - MS
Missouri - MO
Montana - MT
Nebraska - NE
Nevada - NV
New Hampshire - NH
New Jersey - NJ
New Mexico - NM
New York - NY
North Carolina - NC
North Dakota - ND
Ohio - OH
Oklahoma - OK
Oregon - OR
Pennsylvania - PA
Rhode Island - RI
South Carolina - SC
South Dakota - SD

11

	 Income and adjustments.

Complete lines 1 through 17 of the Federal Income
column using the figures from your federal return.
Enter in the Maryland Income column all income or loss that was
derived from Maryland sources and enter in the Non-Maryland
Income column all income or loss derived from non-Maryland
sources. Refunds of state or local income taxes, pensions,
annuities, IRA distributions, unemployment compensation
and Social Security or Railroad Retirement benefits are not
considered to be from Maryland sources for income tax
purposes when these items are received by a nonresident of
Maryland. Adjustments to federal gross income are not generally
applicable to Maryland unless they pertain to business carried
on in Maryland or services performed in Maryland.

Tennessee - TN
Texas - TX
Utah - UT
Vermont - VT
Virginia - VA
Washington, DC - DC
Washington - WA
West Virginia - WV
Wisconsin - WI
Wyoming - WY
Territories and
Possessions of the
United States
American Samoa - AS
Guam - GU
Northern Mariana
Island - MP
Puerto Rico - PR
U.S. Virgin Islands - VI

Line 12: Only enter unemployment compensation included in
federal adjusted gross income.
Special instructions for residents of the following states:
The District of Columbia, Pennsylvania or Virginia: If you
did not maintain a place of abode in Maryland for more than
six months (183 days or more) of 2023, you are exempt from
Maryland tax on your Maryland wage and salary income. Enter
all wage and salary income in the Non-Maryland Income column
of Form 505, even if you earned the income from services
performed in Maryland.

10

	Exemptions.

Determine what exemptions you are entitled to and
complete the appropriate area on the form, including
the Social Security Numbers for children and other
dependents on Form 502B.

If you did maintain a place of abode in Maryland for more than
six months (183 days or more), you are a statutory resident.
Refer to Instruction 1 to see which form you need to file.

EXEMPTIONS ALLOWED
You are entitled to claim qualified exemptions on the Maryland
return. The amount of your Maryland exemption may be limited
by the amount of your federal adjusted gross income. See
Exemption Amount Chart.

•	West Virginia: Regardless of time spent in Maryland,
you should enter all wage and salary income in the NonMaryland Income column of Form 505. You are exempt
from Maryland tax on all of your Maryland wage and salary
income, even if you earned the income from services
performed in Maryland.

You and your spouse are permitted to claim exemptions for being
age 65 or over or for blindness. These additional exemptions
are in the amount of $1,000 each.

•	If you are a resident of the District of Columbia,
Virginia or West Virginia, and the only income from
Maryland sources that you had was from salaries and
wages, follow the instructions for Maryland Tax Withheld in

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.
EXEMPTION AMOUNT CHART (10A)

The personal exemption is $3,200. This exemption is reduced once the taxpayer’s federal adjusted gross income exceeds $100,000
($150,000 if filing joint, head of household, or qualifying surviving spouse with dependent child). This reduction applies to the additional
dependency exemptions as well; however it does not apply to the taxpayer’s age or blindness exemption of $1,000. Use the chart to
determine the allowable exemption amount based upon the filing status. NOTE: For certain taxpayers with interest from U.S. obligations
see Instruction 13, line 23, code hh for applicable exemption adjustment.
If you will file your tax return
If your
Joint, Head of Household
Dependent Taxpayer (eligible to be
FEDERAL ADJUSTED GROSS INCOME Single or Married Filing Separately
or Qualifying Surviving Spouse
claimed on another taxpayer’s return)
is
Each Exemption is
Each Exemption is
Each Exemption is
$100,000 or less
$3,200
$3,200
$0
Over
But not over
$100,000
$125,000
$1,600
$3,200
$0
$125,000
$150,000
$800
$3,200
$0
$150,000
$175,000
$0
$1,600
$0
$175,000
$200,000
$0
$800
$0
In excess of $200,000
$0
$0
$0

4

Error in Instruction 4.

without having the registration or license required by the
Family Law Article.

•	If you are a resident of Pittsburgh, Philadelphia
or any other local Pennsylvania jurisdiction that
imposes a local income or earnings tax on Maryland
residents, see the instructions for Form 515. If your local
Pennsylvania jurisdiction does not impose such a tax, see
Instruction 4.

i.	
Any refunds of advanced tuition payments made under
the Maryland Prepaid College Trust, that were not used
for qualified higher education expenses to the extent the
payments were subtracted from federal adjusted gross
income and any refunds of contributions made under
the Maryland College Investment Plan not used for
qualified higher education expenses, to the extent the
contributions were subtracted from federal adjusted gross
income. See Administrative Release 32.

•	If you are a resident of one of the previously
mentioned jurisdictions, and you have Maryland
source income from sources other than salaries and
wages, you are required to file a Maryland tax return if
your gross income is more than the amounts listed in the
tables in Instruction 4. Your non-Maryland income will be
subtracted from your federal adjusted gross income on line
6b of Form 505NR.

12

j.	Net addition modification to Maryland taxable income when
claiming the federal depreciation allowances from which
the State of Maryland has decoupled. Complete and attach
Form 500DM. See Administrative Release 38.
k.	Net addition modification to Maryland taxable income when
the federal special 2-year carryback (farming loss only)
period was used for a net operating loss under federal law
compared to Maryland taxable income without regard to
federal provisions. Complete and attach Form 500DM.

	 Additions to income.

Determine which additions to income apply to you.
Write the non-Maryland loss and adjustments on line
18 of Form 505. Include the other additions to income
on line 19 of Form 505, to the extent that they apply to
Maryland-source income.

l.	The amount deducted on your federal income tax return for
Domestic Production Activities attributable to Marylandsource income only.

Line 18. NON-MARYLAND LOSS AND ADJUSTMENTS.
Enter the total amount of non-Maryland losses or adjustments
to federal income that were realized or paid attributable to a
non-Maryland source.

m.	 Amount deducted on your federal income tax return for
tuition and related expenses. Do not include adjustments
to income for Educator Expenses or Student Loan Interest
deduction.

Line 19. OTHER ADDITIONS TO INCOME. If one or more of
these apply to your Maryland-source income, enter the total
amount on line 19 and identify each item using the code letter:

n.	 Any refunds received by an ABLE account contributor under
the Maryland ABLE Program or any distribution received
by an ABLE account holder, to the extent the distribution
was not used for the benefit of the designated beneficiary
for qualified disability expense, that were subtracted from
federal adjusted gross income.

	 CODE LETTER
a.	Net Maryland additions from Maryland Schedule K-1 for your
share of income from pass-through entities or fiduciaries
not attributable to decoupling.

o.	 If you sold or exchanged a property for which you claimed
a subtraction modification under Senate Bill 367 (Chapter
231, Acts of 2018) or Senate Bill 580/House Bill 600 (Chapter
544 and Chapter 545, Acts of 2012), enter the amount of
the difference between your federal adjusted gross income
as reportable under the federal Mortgage Forgiveness Debt
Relief Act of 2007 and your federal adjusted gross income
as claimed in the taxable year.

b.	Taxable tax preference items from line 5 of Form 502TP.
The items of tax preference are defined in Internal Revenue
Code Section 57. If the total of your tax preference items
is more than $10,000 ($20,000 for married taxpayers filing
joint returns) you must complete and attach Form 502TP,
whether or not you are required to file federal Form 6251.
c.	

Total amount of credit(s) claimed in the current tax year to
the extent allowed on Form 500CR for the following Business
Tax Credits: Enterprise Zone Tax Credit, Maryland Disability
Employment Tax Credit, Research and Development Tax
Credit, Small Business Research & Development Tax Credit,
Maryland Employer Security Clearance Costs Tax Credit*
and Endowments of Maryland Historically Black Colleges
and Universities Tax Credit. In addition, include any
amount deducted as a donation to the extent that the
amount of the donation is included in an application for
the Endow Maryland Tax Credit on Form 500CR or 502CR.

r. 	 Members of pass-through entities that elected to make
payments attributable to members’ share of the passthrough entity taxable income: If you re­ceived a credit for
tax paid by the pass-through entity on your distributive or
pro rata share of income on Maryland Schedule K-1 (510
/511), part D enter the amount of the credit claimed on
Form 502CR, part CC line 9.

*Do not include the Small Business First-Year Leasing Costs
portion of this credit in this add back.

dm.	
Net addition modification from multiple decoupling
provisions. See the table at the bottom of Form 500DM and
Administrative Release 38.

cd.	
Net addition modification to Maryland taxable income
resulting from the federal deferral of income arising from
business indebtedness discharged by reacquisition of a
debt instrument. See Form 500DM.

d.	Oil percentage depletion allowance claimed under Section
613 of the Internal Revenue Code.

dp.	Net addition decoupling modification from a pass-through
entity. See Form 500DM and Administrative Release 38.

e.	Income exempt from federal tax by federal law or treaty
that is not exempt from Maryland tax

Line 20. TOTAL ADDITIONS. Add lines 18 and 19.

f.	
Net operating loss deduction to the extent of a double
benefit. See Administrative Release 18.

NOTE:
	
	
	
	
	
	

g.	
Pickup contributions of a Maryland State retirement or
pension system member. (The pickup amount will be stated
separately on your W-2 form (box 14).) See Administrative
Release 21.
h.	The amount claimed and allowed as a deduction for federal
income tax purposes for expenses attributable to operating
a family day care home or a child care center in Maryland
5

In the event of legislative changes (for example,
emergency legislation or a veto override of legislation
from a prior legislative session) that retroactively
affect tax year 2023, the Comptroller will provide
additional instruction on the use of Form 502LU.
The amount on Line 4 of Form 502LU is added to Line
6 Total additions.

13

	 Subtractions from income.

of the commissioned corps of the Public Health Service,
the National Oceanic and Atmospheric Administration, the
Coast and Geodetic Survey, a member of the Maryland
National Guard, or the member’s surviving spouse or exspouse.

Determine which subtractions from income apply to you.
Write the amounts on lines 22 and 23 of Form 505.

w.	
Lesser of $1,200 or the income subject to Maryland tax
of the spouse with the lower income if both spouses have
income subject to Maryland tax and you file a joint return.

Line 22. TAXABLE MILITARY INCOME OF NONRESIDENT.
Enter the amount of military pay included in your federal
adjusted gross income that you received while in the active
service of any branch of the armed forces of the United States.

y.	Any income of an individual that is related to tangible or
intangible property that was seized, misappropriated or
lost as a result of the actions or policies of Nazi Germany
towards a Holocaust victim. For additional information,
visit marylandtaxes.gov or contact Taxpayer Services
Division at 410-260-7980.

Line 23. SUBTRACTIONS FROM INCOME ON FORM 505SU.
Determine which subtractions apply to you and enter the
amount for each on Form 505SU. Enter the sum of all applicable
subtractions from Form 505SU on line 23 of Form 505, and
enter the code letters that represent the four highest dollar
amounts in the code letter boxes. If multiple subtractions
apply, be sure to identify all of them on Form 505SU and attach
it to your Form 505.

aa.	Payments from a pension system to the surviving spouse
or other beneficiary of a law enforcement officer or
firefighter whose death arose out of or in the course of
their employment.

Note: If only one of these subtractions applies to you, enter the
amount and code letter on line 23 of Form 505, then the use of
Form 505SU may be optional.

bb.	
Net subtraction modification to Maryland taxable income
when claiming the federal depreciation allowances from
which the State of Maryland has decoupled. Complete and
attach Form 500DM. See Administrative Release 38.

To the extent that one or more of these items have been
included in your federal adjusted gross income, enter the
total amount on the appropriate line in Part I of Form
505SU.
	

cc.	
Net subtraction modification to Maryland taxable income
when the federal special 2-year carryback (farming loss
only) period was used for a net operating loss under federal
law compared to Maryland taxable income without regard
to federal provisions. Complete and attach Form 500DM.

CODE LETTER

a.	Payments from a pension system to firemen and policemen
for job-related injuries or disabilities (but not more than the
amount of such payments included in your total income).

cd.	
Net subtraction modification to Maryland taxable income
resulting from the federal ratable inclusion of deferred
income arising from business indebtedness discharged by
reacquisition of a debt instrument. Complete and attach
Form 500DM. See Administrative Release 38.

c.	Amount of refunds of state or local income tax included in
line 4 of Form 505.
d.	
Distributions of accumulated income by a fiduciary, if
income tax has been paid by the fiduciary to Maryland (but
not more than the amount of such income included in your
total income).

dd.	
Any amount of income derived within any arts and
entertainment district by a qualifying residing artist from
the publication, production, or sale of an artistic work that
the artist wrote, composed or executed. Complete and
attach Form 502AE.

e.	Profit (without regard to losses) from the sale or exchange
of bonds issued by Maryland.
j.	
Amount added to your taxable income for the use of an
official vehicle used by a member of a state, county or local
police or fire department. The amount is stated separately
on Form W-2.

dm.	
Net subtraction modification from multiple decoupling
provisions. See the table at the bottom of Form 500DM for
the line numbers and code letters to use.
ee.	
Amount received as a grant under the Solar Energy
Grant program administered by the Maryland Energy
Administration.

n.	
Payment received under a fire, rescue, or ambulance
personnel length of service award program that is funded
by a Maryland county or municipal corporation.

gg.	
Amount of income for services performed in Maryland
by the spouse of a member of the armed services, if the
spouse is not domiciled in Maryland and is in Maryland
solely to be with the servicemember serving in compliance
with military orders, pursuant to the Military Spouses
Residency Relief Act. See Administrative Release 1.

r.	Amount of interest on U.S. Savings Bonds and other U.S.
obligations. Capital gains from the sale or exchange of U.S.
obligations should be included on this line. Dividends from
mutual funds that invest in U.S. Government obligations are
also exempt from state taxation. However, only that portion
of the dividends attributable to interest or capital gain
from U.S. Government obligations can be subtracted. Do
not subtract income from Government National Mortgage
Association securities. See Administrative Releases 10 and
13.

hh.	
Exemption Adjustment for high income taxpayers with
interest on U.S. obligations. If you have received income
from U.S. obligations and your federal adjusted gross
income exceeds $100,000 ($150,000 if filing joint, head
of household, or qualifying surviving spouse), enter
the difference, if any, between the exemption amount
based on your federal adjusted gross income and the
exemption amount based upon your federal adjusted gross
income after subtracting your U.S. obligations using the
EXEMPTION ADJUSTMENT WORKSHEET (13A).

s.	Amount of interest and dividend income (including capital
gain distributions) of a dependent child which the parent
has elected to include in the parent's federal gross income
under Internal Revenue Code Section 1(g)(7).
t.	Social Security, Tier I, Tier II and/or supplemental Railroad
Retirement benefits included in your federal adjusted gross
income.

EXEMPTION ADJUSTMENT WORKSHEET (13A)

u.	
Up to $12,500 of military retirement income, including
death benefits, received by a qualifying individual during
the tax year if the taxpayer has not yet attained the age of 55;
or up to $20,000 of military retirement income, including
death benefits, received by a qualifying individual if the
taxpayer is of age 55 or over. 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

Line 1:	 Enter the exemption amount to be
	
reported on line 28 of Form 505,
	
using the chart in Instruction 10 . . $_______________
Line 2:	 Enter your federal adjusted gross
	
income as reported in Column 1 of
	
line 17 of your Form 505 . . . . . . . . $_______________

6

Line 3:	 Enter your income from U.S.
	
obligations to be included in line 23
	
of Form 505 . . . . . . . . . . . . . . . . . $_______________

the first $50,000 of compensation received by an individual
during the taxable year in exchange for the sale of a
perpetual conservation easement on real property located
in the State of Maryland. If filing a joint return, each
individual may claim up to the maximum amount allowed.

Line 4:	 Subtract amount on line 3 from
	
amount reported in line 2.  . . . . . . $_______________

xc. Any amount included in federal adjusted gross income as a
result of a distribution to a designated beneficiary from a
Maryland ABLE account, unless it is a refund or nonqualified
distribution. Designated beneficiary means a designated
beneficiary as defined in § 18–19C–01 of the Education
Article.

Line 5:	 Recalculate your exemption
	
amount using the chart in
	
Instruction 10 using the income
	
from line 4.
	
Remember to add your $1,000
	
exemptions for age and blindness,
	
if applicable . . . . . . . . . . . . . . . . . $_______________

xe.	An amount included in federal adjusted gross income
contributed by the State into an investment account under
§ 18-19A-04.1 of the Education Article during the taxable
year. This includes amounts included in federal adjusted
gross income contributed by the State into an investment
account under the Maryland College Investment Plan.

Line 6:	 Subtract the exemption amount
	
calculated in line 1 from the
	
exemption amount calculated in
	
line 5.
	
If the amount is less than zero (0),
	
enter zero (0). If the amount is
	
zero (0), you have already received
	
the maximum exemption that you
	
are entitled to claim on Form 505  . $_______________

To the extent that one or more of these items apply
to your Maryland income, include only that part
attributable to Maryland on the appropriate line in
Part II of Form 505SU. Unless a different method more
accurately attributes the subtraction to Maryland, the
part attributable to Maryland is calculated by multiplying
the amount by a fraction the numerator of which is your
Maryland adjusted gross income from line 17 column 2,
and the denominator of which is federal adjusted gross
income from Line 17, column 1.

If the amount is greater than zero (0), enter this amount
as a subtraction on line hh of Form 505SU.

Example:
Pat and Chris Jones had a federal adjusted gross income of
$180,000. They also had $40,000 in interest from U.S. Savings
Bonds and had a dependent son whom they claimed on the
Maryland tax return. Using Instruction 10, they found that
the exemption amount on their Maryland return (based upon
$180,000 of income) was $2,400 ($800 for three exemptions).
If it were not for the $40,000 of U.S. Savings Bonds, their
federal adjusted gross income would have been $140,000 and
their exemption amount would have been $9,600 ($3,200 for
three exemptions). Therefore, Pat and Chris Jones are entitled
to claim a subtraction of $7,200 ($9,600 - $2,400) on line hh of
Form 505SU.

f.	 Child and dependent care expenses. You may subtract the
cost of caring for your dependents while you work. There
is a limitation of $3,000 ($6,000 if two or more dependents
receive care). To claim this subtraction from income, enter
the smaller of (a) the amount on line 6 of federal Form 2441
or (b) $3,000 ($6,000 if two or more dependents receive
care).
g.	 Amount of wages and salaries disallowed as a deduction
due to the work opportunity credits allowed under Internal
Revenue Code Section 51.
h.	 Expenses up to $5,000 incurred by a blind person for a
reader, or up to $1,000 incurred by an employer for a reader
for a blind employee.

ii.	 Interest on any Build America Bond that is included in your
federal adjusted income. See Administrative Release 13.
jj.	

Gain resulting from a payment from the Maryland Department
of Transportation as a result of the acquisition of a portion of
the property on which your principal residence is located.

i.	Expenses incurred for reforestation or timber stand
improvement of commercial forest land. Qualifications
and instructions are on Form DNR-393, available from the
Department of Natural Resources. Visit dnr.maryland.gov
to obtain this form.

mm.	Amount received by a claimant for noneconomic damages
as a result of a claim of unlawful discrimination under
Internal Revenue Code Section 62(e).

k.	 Adoption of a child: $12,000 if the child adopted has a special
need under the Social Security Act; $10,000 for adoption of
a child without a special need

nn. Amount of student loan indebtedness discharged. Attach
a copy of the notice stating that the loans have been
discharged.

l.	 Purchase and installation costs of enhanced agricultural
management equipment as certified by the Maryland
Department of Agriculture. Attach a copy of the certification.

oo. Any amount included in federal adjusted gross income
for: 1) the value of any medal given by the International
Olympic
Committee,
the
International
Paralympic
Committee, the Special Olympics International Committee,
or the International Committee of Sports for the Deaf;
and 2) any prize money or honoraria received from the
United States Olympic Committee from a performance at
the Olympic Games, the Paralympic Games, the Special
Olympic Games, or the Deaflympic Games.

m.	Deductible artist's contribution. Attach Form 502AC.
o.	 Value of farm products you donated to a gleaning cooperative
as certified by the Maryland Department of Agriculture.
Attach a copy of the certification.
q.	 Charitable travel expense. You may subtract from income
unreimbursed vehicle travel expenses for:

qq.	Amount of qualified principal residence indebtedness
included in federal adjusted gross income that was allowable
as an exclusion under the Mortgage Forgiveness Debt
Relief Act of 2007, as amended. The subtraction may not
exceed $100,000 for taxpayers who file single or married
filing separately, and may not exceed $200,000 for married
filing joint, head of household, or qualifying surviving
spouse). Qualified principal residence indebtedness is debt
used to buy, build or substantially improve your principal
residence, or to refinance debt incurred for those purposes
but only if the debt is secured by the home.

1.	 A volunteer fire company;
2.	Service as a volunteer for a charitable organization
whose principal purpose is to provide medical, health or
nutritional care; and
3.	Assistance for handicapped students at a Maryland
community college (other than providing transportation
to and from the college). Attach Form 502V.
va.	The Honorable Louis L. Goldstein Volunteer Fire, Rescue
and Emergency Medical Services Personnel Subtraction
Modification Program. $7,000 for each taxpayer who is a

rr.	 Any amount included in federal adjusted gross income for
7

qualifying volunteer as certified by a Maryland fire, rescue
or emergency medical services organization. $7,000 for
each taxpayer who is a qualifying member of the U.S. Coast
Guard Auxiliary, Maryland Defense Force or Maryland Civil
Air Patrol as certified by these organizations. Attach a copy
of the certification.

grade 12 in an elementary or secondary school in the State
of Maryland for an academic year ending during the taxable
year may subtract up to $250 of unreimbursed expenses
paid or incurred during the taxable year for the purchase of
classroom supplies used by: 1) students in the classroom;
or 2) the teacher to prepare for or during classroom
teaching. An individual may not subtract any expense that
is subtracted from federal adjusted gross income under §62
of the Internal Revenue Code. If filing a joint return, each
individual may claim up to the maximum amount allowed.

vb.	The Honorable Louis L. Goldstein Volunteer Police Personnel
Subtraction Modification Program. $5,000 for each taxpayer
who is a qualifying police auxiliary or reserve volunteer as
certified by a bona fide Maryland police agency. Attach a
copy of the certification.

yb. Amount of ordinary and necessary expenses, including a
reasonable allowance for salaries or compensation, paid
or incurred during the taxable year in carrying on a trade
or business as a State licensed medical cannabis grower,
processor, dispensary, or any other cannabis establishment
licensed by the State, if the deduction for ordinary and
necessary expenses is disallowed under Section 280E of
the Internal Revenue Code.Include your Cannabis Business
License Number on the line provided.

vv.	The value of a subsidy for rental expenses received by a
resident of Howard County under the "Live Where You
Work" program of the Downtown Columbia Plan. For more
information, visit marylandtaxes.gov.
xa.	Up to $2,500 per contract purchased for advanced tuition
payments made to the Maryland Prepaid College Trust. See
Administrative Release 32.
xb.	Up to $2,500 per contributor per beneficiary of the total
of all amounts contributed to investment accounts under
the Maryland College Investment Plan. This subtraction
modification may not be claimed if the account holder
received a State contribution under § 18-19A-04.1 of the
Education Article during the taxable year.

For more information, visit marylandtaxes.gov.
yc.

Union dues. Enter the amount of dues you paid
for labor union membership attributable to an
occupation, profession, or trade carried on wholly or
partly in Maryland that is included in your federal adjusted
gross income. Do not include (1) dues attributable to an
occupation, profession, or trade carried on wholly outside of
Maryland, (2) the portion of any contributions that provide
funds for the payment of sick, accident, or death benefits,
(3) contributions to a pension fund even if the union
requires you to make contributions, or (4) any amounts of
the contribution that are related to certain lobbying and
political activities. This includes any amounts the union
uses to influence legislators or executive branch officials
or to participate in any political campaign or other political
activities. If your union engages in any of these activities, it
should provide you with the percentage of your union dues
that it uses to conduct these activities.

xd.	Up to $2,500 per ABLE account contributor per beneficiary
of the total of all amounts contributed under the Maryland
ABLE Program. Subject to the $2,500 annual limitation,
any amount disallowed as a subtraction because it exceeds
$2,500 may be carried over until used to the next 10
succeeding taxable years as a subtraction.
z.	 Expenses incurred to buy and install handrails in an existing
elevator in a healthcare facility (as defined in Section 19-114
of the Health-General Article) or other building in which at
least 50% of the space is used for medical purposes.
ff.	 Amount of the cost difference between a conventional on-site
sewage disposal and a system that uses nitrogen removal
technology, for which the Department of Environment’s
payment assistance program does not cover. An individual
must have applied to the Department of the Environment for
assistance to claim the subtraction modification on the Form
505SU. Also, in order to claim the subtraction modification,
the system that is purchased must be a system that utilizes
nitrogen removal technology as per Environment Article of
the Annotated Code of Maryland § 9-1108.

Do not claim this subtraction if you are self-employed and
you claimed your union dues as a business expense on your
federal return.
Retain all records of your payment of union dues, and make
them available upon request by the Comptroller’s office.
The share of net Maryland subtractions arising from a
pass-through entity or fiduciary and passed through
to you. Determine the appropriate amount of these
subtractions; include the total amount on the appropriate
line in Part III of Form 505SU.

kk.	Qualified conservation program expenses up to $500 for an
application approved by the Department of Natural Resources
to enter into a Forest Conservation and Management Plan.
ll.	 Payment received as a result of a foreclosure settlement
negotiated by the Maryland Attorney General.

b.	Net Maryland subtractions from Maryland Schedule K-1
for your share of income from pass-through entities or
fiduciaries not attributable to decoupling.

pp.	Up to $1,500 of unreimbursed expenses that a foster parent
incurs on behalf of a foster child. The foster parent must be
approved by a local department to provide 24-hour care for
a foster child in the house where the foster parent resides. A
treatment foster parent licensed by a child placement agency
may not claim the subtraction modification. Foster parent
includes a kinship parent. The expenses must be approved
as necessary by the local department of social services or
the Montgomery County Department of Health and Human
Services and may not include an expense for which the
foster parent receives an allowance or reimbursement from
any public or private agency.

dp.	Net subtraction decoupling modification from a pass-through
entity. See Form 500DM and Administrative Release 38.
Line 24. TOTAL SUBTRACTIONS. Add lines 22 and 23.
NOTE: In the event of legislative changes (for example,
emergency legislation or a veto override of legislation from
a prior legislative session) that retroactively affect tax year
2023, the Comptroller will provide additional instruction on
the use of Form 502LU. The amount on Line 4 of Form 502LU
is added to Line 6 Total additions.

ss. A living individual may deduct up to $10,000 of unreimbursed
travel expenses, lodging expenses or lost wages, paid or
incurred, during the taxable year that are attributable to the
donation of all or part of one or more of the individual’s liver,
kidney, pancreas, intestine, lung, or bone marrow to another
individual for organ transplant. If filing a joint return, each
individual may claim up to the maximum amount allowed.

14

	 Adjusted Gross Income (AGI) Factor

You must adjust your standard or itemized deductions and
exemptions using the AGI factor calculated in the ADJUSTED
GROSS INCOME FACTOR WORKSHEET (14A). Carry this amount
to six decimal places.

tt.	A full-time classroom teacher who teaches Kindergarten to
8

NOTE: If Maryland adjusted gross income before subtractions
(line 2) is 0 or less, use 0 as your factor. If your federal adjusted
gross income (line 1) is 0 or less and line 2 is greater than 0,
use 1 as your factor.

This is your standard deduction. . . . . . . . . . . . .  $ _________

ADJUSTED GROSS INCOME FACTOR WORKSHEET
(14A)

$34,333
or over . . . . . . . . . . . . . . . . . . . . . . . . $ _________
5,150
	

If your	
income is:	

Your standard
deduction is:

Enter your standard deduction on line 26a.

1.	Enter your federal adjusted gross
income (from line 17, column 1)  . . . . . . $_______________

16

	 Itemized deductions.

2.	Enter your Maryland adjusted gross
income before subtraction of
non-Maryland income (from line 25)  . . . $_______________

Copy the amount from Federal Form 1040, Schedule A, line 17,
Total Itemized Deductions, on line 26b of Form 505. Certain
items of federal itemized deductions are not eligible for State
purpo