Maryland Maryland Personal Income Tax Credits for Individuals

Maryland Personal Income Tax Credits for Individuals
2023 502CR INCOME TAX CREDITS FOR INDIVIDUALS
MARYLAND
FORM

502CR

Your Social Security Number
Print Using Blue or Black Ink Only

2023

INCOME TAX CREDITS
FOR INDIVIDUALS
Attach to your tax return.

Spouse's Social Security Number

Your First Name		

MI	

Your Last Name		

Spouse's First Name	

MI	

Spouse's Last Name

Read Instructions for Form 502CR. Note: You must complete and submit pages 1 through 4 of this form to receive credit for the
items listed.
PART A - TAX CREDITS FOR INCOME TAXES PAID TO OTHER STATES AND LOCALITIES
If you were a part-year resident, do not claim a credit for tax paid on nonresident income you included on line 12 of the Form 502.
If you are claiming a credit for taxes paid to multiple states and/or localities, see instructions.
1.

Enter your taxable net income from line 20, Form 502 (or line 10, Form 504). . . . . . . . . . . . . . . . . . . . . . . . . 1.

2.

Taxable net income in other state. Write on this line only the net income which is taxable in both the other state

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and Maryland. If you are taxed in the other state on income which is not taxable in Maryland, do not include that
amount here. NOTE: When the tax in the other state is a percentage of a tax based on your total income
regardless of source, you must apply the same percentage to your taxable income in the other state to
determine the income taxable in both states.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3.

Revised taxable net income (Subtract line 2 from line 1.) If less than zero, enter zero.. . . . . . . . . . . . . . . . . . . 3.

4.

Enter the Maryland tax (sum of lines 21 and 21a, Form 502; or line 11, Form 504). This is the Maryland tax based
on your total income for the year.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5.

Do not include the local income tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6.

Tentative State tax credit (Subtract line 5 from line 4.) If less than zero, enter zero.. . . . . . . . . . . . . . . . . . . . 6.

7.

Enter the Local tax from line 28, Form 502 (or line 18, Form 504). This is the Local tax based on your total
income for the year.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7.
Local tax on amount on line 3. Compute the Local tax that would be due on the revised taxable net income by
multiplying line 3 by your Local tax rate .0

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Tax on amount on line 3. Compute the Maryland tax that would be due on the revised taxable net income by
using the Maryland Tax Table or Computation Worksheet contained in the instructions for Forms 502 or 504.

8.

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

Tentative Local tax credit (Subtract line 8 from line 7.) If less than zero, enter zero.. . . . . . . . . . . . . . . . . . . . 9.

10. Tentative Total tax credit (Add line 6 and line 9.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Total state and local tax shown on tax return(s) filed with the state of (Enter 2-letter state code, code must be
entered for credit to be allowed)

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Enter the amount of your 2023 income tax liability (after deducting

any credits for personal exemptions) to the other state and locality in the other state (where applicable). Do not
enter state or locality tax withheld from your W-2 forms. It is important that a copy of the tax return that
was filed with the other state and/or locality be attached to your Maryland return. . . . . . . . . . . . . . 11.
12. Credit for income tax paid to other state and/or locality. Your credit for taxes paid to another state and/or locality
is the smaller of the tax actually paid (line 11) or the reduction in Maryland tax resulting from the exclusion of
income in the other state and/or locality (line 10). Write the lesser of line 11 or line 10. . . . . . . . . . . . . . . . . 12.
State and Local Credits Allowed
13. State Credit for Income Tax Paid to other state (Lesser of line 6 or line 12). Enter on line 1, Part AA. . . . . .

13.

14. Local Credit for Income Tax Paid to other state (Subtract line 13 from line 12.) Enter on line 1, Part BB . . .

14.

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MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS
FOR INDIVIDUALS
Attach to your tax return.

NAME	

Page 2

SSN 	

PART B - CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES
1.	

Enter your federal adjusted gross income from line 1 of Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.

2.	

Enter your federal Child and Dependent Care Credit from federal Form 2441 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.

3.	

Enter the decimal amount from the chart in the instructions that applies to the amount on line 1 . . . . . . . . . . . . .  3.

4.	

Multiply line 2 by line 3. Enter here and on Part AA, line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
Enter the Maryland public school system or a State or local correctional

	

Taxpayer A	

facility or qualified juvenile facility in which you are employed and teach. . . . . . .  1. 	
2.	

Enter amount of tuition paid to:

3.	

Enter amount of tuition reimbursement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3. 	

4.	

Subtract line 3 from line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4. 	

Name of Institution(s)

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4.

Enter the Name of Qualified Employer

PART C - QUALITY TEACHER INCENTIVE CREDIT
1.	

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. . . . . . . . . . . . . . . .  2. 	

5. 	 Maximum Credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5. 	
6.	

Enter the lesser of line 4 or line 5 here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6. 	

7.	

Total (Add amounts from line 6, for Taxpayers A and B). Enter here and

Taxpayer B

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	1500 00
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on Part AA, line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

1. 	
2. 	
3. 	
4. 	
5.
6. 	

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	1500 00
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7.

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS
1.	

Enter the amount paid to purchase an aquaculture oyster float(s)
Enter here and on Part AA, line 4. This credit is limited. See Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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1.

PART E - LONG-TERM CARE INSURANCE CREDIT: (THIS IS A ONE-TIME CREDIT.)
Answer the questions and see instructions below before completing Columns A through E for each person
for whom you paid long-term care insurance premiums.
Question 1 - Did the insured individual have long-term care insurance prior to July 1, 2000? . . . . . . . . . . . . . . . . . . . . . . . .  	

Yes	

Question 2 - Is the credit being claimed for the insured individual in this year by any other taxpayer?. . . . . . . . . . . . . . . . . .  	

Yes	

No
No

Question 3 - Has credit been claimed by anyone for the insured individual in any other tax year? . . . . . . . . . . . . . . . . . . . .  	Yes	

No

Question 4 - Is the insured individual for whom the credit is being claimed a nonresident of Maryland?. . . . . . . . . . . . . . . . .  	

No

Yes	

If you answered YES to any of the above questions, that insured person does NOT qualify for the credit.
Complete Columns A through D only for insured individuals who qualify for credit. Enter in Column E the lesser of the amount of premium paid for
each insured person or:	

• $480 for those insured who are 40 or less, as of 12/31/23

	

• $500 for those insured who are over age 40, as of 12/31/23

Add the amounts in Column E and enter the total on line 5 (total) and on Part AA, line 5.
Column B

Column C

Column D

Column E

Social Security No.
of Insured

Relationship to
Taxpayer

Amount of Premium Paid

Credit Amount

Column A
Age

Name of Qualifying Insured
Individual

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	 1.	1.
	
	
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	 2.	2.
	
	
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	 3.	3.
	
	
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	 4. 	4.
	
	
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	 5.	

	

TOTAL	 5.

	

PART F - CREDIT FOR PRESERVATION AND CONSERVATION EASEMENTS
PTE members may not use the Form 502CR to claim this credit.
1.	

Taxpayer A
		

Enter the portion of the total current-year conveyance amount, and any

Taxpayer B

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carryover from prior year(s), attributable to each taxpayer. . . . . . . . . . . . . . . . . . 1.	1.
2.	

Enter the amount of any payment received for the easement by each

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3.	3.

taxpayer during 2023. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.	2.
3.	

Subtract line 2 from line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4.	

Enter the amount from line 21 and 21a of Form 502; line 32d of Form 505; line 33 and 33a
Enter the lesser of line 3 or 4 here. (If you itemize deductions,

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see Instruction 14.). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.	5.
6.	

Total (Add amounts from line 5 for Taxpayers A and B). Enter here and on Part AA, line 6. . . . . . . . . . . . . . . . 

7.	

Excess credit carryover. Subtract line 6 from the sum of lines 3A and 3B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7.

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of Form 515; line 13 of Form 504 or $5,000, whichever is less. See instructions. .. 4.	4.
5.	

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MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS
FOR INDIVIDUALS
Attach to your tax return.

NAME	

Page 3

SSN 	

PART G – RESERVED . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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PART H – COMMUNITY INVESTMENT TAX CREDIT ** must attach required certification
This credit is limited to individual taxpayers who have elected not to claim this credit on Form 500CR. If you have an Excess Carryover on Form
500CR attributable to any credit other than the Community Investment Tax Credit (CITC), you are not eligible to claim the CITC on Form 502CR.
You must use Form 500CR. Also, PTE members may not elect to use Form 502CR to claim the CITC.
1.	

Enter the amount of Excess CITC Carryover from 2022. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.

2.	

Amount of approved contributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.

3.	

Enter 50% of line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.

4.	

Enter the amount from line 3 or $250,000, whichever is less. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.

5.	

Add line 1 and line 4. Enter the result here and on Part AA, line 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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5.

PART I – ENDOW MARYLAND TAX CREDIT **must attach required certification
This credit is limited to individual taxpayers who have elected not to claim this credit on Form 500CR.
1.	

Enter the amount of Excess Endow Maryland Tax Credit Carryover from 2022 . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.

2.	

Amount of approved donation to a qualified permanent endowment fund. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.

3.	

Enter 25% of line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.

4.	

Enter the amount from line 3 or $50,000, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.

5. 	 Add line 1 and line 4. Enter the result here and on Part AA, line 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

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5.

Note: Line 2 of Part I requires an addition to income. See Instruction 12.
PART J – PRECEPTORS IN AREAS WITH HEALTH CARE WORKFORCE SHORTAGES TAX CREDIT ** must attach
required certification
1.	

Physician Preceptorship Tax Credit: Enter amount certified by Maryland Department of Health

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(See Instructions for specific requirements.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1.
2.	

Nurse Practitioner Preceptorship Tax Credit: Enter amount certified by Maryland Department of Health

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(See Instructions for specific requirements.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.
3.	

Physician Assistant Preceptorship Tax Credit: Enter amount certified by Maryland Department of Health

4.	

Add line 1, 2, and 3. Enter the result here and on Part AA, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

4.

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(See Instructions for specific requirements). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.
PART K - INDEPENDENT LIVING TAX CREDIT ** must attach required certification
1.	

Credit (Certified by the Maryland Department of Housing and Community Development)
Enter here and on Part AA, line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

PART L - ENDOWMENTS OF MARYLAND HISTORICALLY BLACK COLLEGES AND UNIVERSITIES TAX CREDIT
	
1.	

** must attach required certification
Credit (Certified by the Office of The Comptroller). Enter here and on Part AA line 12.. . . . . . . . . . . . . . . . . . . 

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PART M - SENIOR TAX CREDIT
1.	

Enter the credit claimed here and on Part AA, line 13 (See Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

PART AA - INCOME TAX CREDIT SUMMARY
1.	

Enter the amount from Part A, line 13 (If more than one state, see Instructions.) . . . . . . . . . . . . . . . . . . . . . . . .  1.

2.	

Enter the amount from Part B, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2.

3.	

Enter the amount from Part C, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3.

4.	

Enter the amount from Part D, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4.

5.	

Enter the amount from Part E, line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6.	

Enter the amount from Part F, line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6.

7.	

Reserved . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7.

8.	

Enter the amount from Part H, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8.

9.	

Enter the amount from Part I, line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  9.

10.	 Enter the amount from Part J, line 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11.	 Enter the amount from Part K, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.
12.	 Enter the amount from Part L, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.
13.	 Enter the amount from Part M, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.
14.	 Total (Add lines 1 through 13.) Enter this amount on line 24 of Form 502; line 14 of Form 504;
line 34 of Form 505 or line 35 of Form 515 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.

COM/RAD-012

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MARYLAND
FORM

502CR
NAME	

2023

INCOME TAX CREDITS
FOR INDIVIDUALS
Attach to your tax return.

Page 4

SSN 	

PART BB – LOCAL INCOME TAX CREDIT SUMMARY
1.	

Enter the amount from Part A, line 14 (If more than one state, see Instructions.) . . . . . . . . . . . . . . . . . . . . .

	

Enter this amount on line 31 of Form 502; line 19 of Form 504.

1.

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PART CC- REFUNDABLE INCOME TAX CREDITS
1.	

Student Loan Debt Relief Tax Credit (See Instructions.). Enter the amount and attach certification. . . . . . . .

	1.

2.	

Heritage Structure Rehabilitation Tax Credit (See Instructions for Form 502S). Attach certification(s).. . . . . .

	2.

3.	

Refundable Business Income Tax Credit (See Instructions for Form 500CR.)	
	

4.	

IRC Section 1341 Repayment Credit. (See Instructions and Administrative Release 40.) Attach documentation.

You must file your return electronically to 		
claim a business income tax credit.
	4.

5. 	 Catalytic Revitalization Projects and Historic Revitalization Tax Credit

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(See Instructions for required attachments). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	5.

6.	

Flow-through Nonresident PTE tax (See Instructions for required attachments.) . . . . . . . . . . . . . . . . . . . . . . .

	6.

7.	

Refundable credit for Child and Dependent Care Expenses. (See Instructions.). . . . . . . . . . . . . . . . . . . . . . .

	7.

8.	

Refundable Maryland Child Tax Credit (See worksheet 21C Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .

	8.

9.	

PTE Tax paid on members' distributive or pro rata shares of income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

	9.

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or line 51 of Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	10.

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10.	 Total. (Add lines 1 through 9.) Enter this amount on line 43 of Form 502, line 46 of Form 505
Part DD- Recapture of Previously Claimed Credit
1.

Recapture of Student Loan Debt Relief Tax Credit for 2020 (See Instructions). Enter this amount on line 21a of
Form 502, line 32d of Form 505, or line 33a of Form 515 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

GENERAL INSTRUCTIONS
Purpose of Form. Form 502CR is used to claim personal income tax credits for individuals (including resident fiduciaries).
The following tax credits are nonrefundable and may not exceed the state income tax: Income Taxes Paid to Other States
and Localities, Child and Dependent Care Expenses, Quality
Teacher Incentive, Aquaculture Oyster Floats, Long-Term Care
In­
surance, Preservation and Conservation Ease­
ments, Community Investment, Endow Maryland, Precep­tors in Areas with
Health Care Workforce Shortages, Independent Living, Endowments of Maryland Historically Black Colleges and Universities,
and Senior Tax Credit.
Excess credit for the Preservation and Conservation Easements, Community Investment, En­dow Maryland, and Endowments of Maryland Historically Black Colleges and Universities
may be carried forward to the next tax year. All other nonrefundable credits cannot be carried forward.
The following tax credits are refundable: Student Loan Debt
Relief, Heritage Structure Rehabilitation, IRC Section 1341 Repayment, Catalytic Revitalization Projects, Flow-Through Nonresident PTE, Child and Dependent Care Expenses, Maryland
Child Tax, and PTE paid on members’ distributive or pro rata
shares of income.
NOTE:
•	 You must file Form 500CR electronically to claim any business income tax credit other than the Community Investment and En­dow Maryland Tax Credits.
•	 Resident fiduciaries may use Form 502CR to claim only a
credit for income taxes paid to other states and/or localities
or a credit for Preservation and Conser­vation Easements.
Name and Other Information. Type or print the name(s) as
shown on Form 502, 505, 515 or 504 in the designated area.
Enter the Social Security number for each taxpayer.
Form 502CR must be attached to the annual return (Form
502, 504, 505 or 515).
PART A - CREDIT FOR INCOME TAXES PAID TO OTHER
STATES AND LOCALITIES
Review Administrative Release 42 for additional instructions and required documentation.
If you are a Maryland resident (including a resident fiduciary)
and you paid income tax to another state, you may be eligible for
State and local tax credits on your Maryland return. Nonresidents
(filing Form 505, 515 or 504) are not eligible for this credit.
Find the state to which you paid a nonresident tax or the state
of the locality to which you paid a nonresident tax in one of the
following groups. The instructions for that group will tell you if
you are eligible for credit and should complete Part A of Form
502CR. You must file your Maryland income tax return on Form
502 and complete lines 1 through 21a and line 28 of that form,
or on Form 504 and complete lines 1 through 11 and line 18.
Then complete Form 502CR Parts A, AA, and BB and attach to
Form 502 or 504.
A completed, signed copy of the income tax return filed in the
other state and/or locality must also be attached to Form 502
or 504.
CAUTION: Do not use the income or withholding tax reported
on the wage and tax statement (W-2 form) issued by your employer for the credit computation. Use the taxable income and
the income tax calculated on the return you filed with the other
state.
Claiming Credit for Taxes Paid to Multiple States and Localities If you are claiming credit for taxes paid to multiple

Page 1

states, a separate Form 502CR must be completed for each
state. Total the amount from each Form 502CR, Part A, line 13
and line 14. Using only one Form 502CR as a summary section, record the total amount from line 13 of the separate Forms
502CR on line 1, Part AA of the summary Form 502CR. Record
the total amount from line 14 of the separate Forms 502CR on
line 1, Part BB of the summary Form 502CR.
GROUP I - Nonreciprocal - Credit is taken on the Maryland resident return.
Alabama - AL
Arizona - AZ
Arkansas - AR
California - CA
Colorado - CO
Connecticut - CT
Delaware - DE
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
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
(except wage income)
Rhode Island - RI
South Carolina - SC
Tennessee - TN
Texas - TX

Utah - UT
Vermont - VT
Virginia - VA
(except wage income)
Washington, DC - DC
(except wage income)
West Virginia - WV
(except wage income)
Wisconsin - WI
Territories and
Possessions of the
United States
American Samoa - AS
Guam - GU
Northern Mariana
Island - MP
Puerto Rico - PR
U.S. Virgin Islands - VI

A Maryland resident (including a resident fiduciary) having income from one of these states must report the income on the
Maryland return Form 502 or 504. To claim a credit for taxes
paid to the other state, and/or local jurisdiction in the other
state, complete Form 502CR and attach it and a copy of the
other state’s nonresident income tax return (not just your W-2
Form) and, if applicable, the local jurisdiction's nonresident income tax return to your Maryland return.
GROUP II - Reciprocal for wages, salaries, tips and commission
income only.
Pennsylvania - PA	
Virginia - VA	

Washington, DC - DC
West Virginia - WV

Maryland has a reciprocal agreement with the states included
in Group II. The agreement applies only to wages, salaries, tips
and commissions. It does not apply to business income, farm
income, rental income, gain from the sale of tangible property,
etc. If you had such income subject to tax in these states, complete Form 502CR and attach it and a copy of the other state’s
nonresident income tax return (not just your W-2 Form) and,
if applicable, the local tax jurisdiction's nonresident income tax
return to your Maryland return.
If you had wages, plus income other than wages from a state
listed in Group II, you should contact the taxing authorities in
the other state to determine the proper method for filing the
nonresident return.
NOTE: If you had wages subject to tax in a locality in Pennsylvania, you may file Form 502CR to claim a State and local tax
credit. Enter the amount of tax that you paid to the locality on
line 11, Part A of the Form 502CR.
GROUP III - No state income tax - No credit allowed.
Alaska - AK	
Florida - FL	
Nevada - NV	

South Dakota - SD
Washington - WA
Wyoming - WY

You must report income from these states on your Maryland
resident return. You cannot claim any credit for income earned
in these states because you did not pay any income tax to the
other state.

MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

There is an addback required for the portion of the credit
for taxes paid to another state that represents tax an outof-state pass-through entity paid on the member’s pro
rata share of income in that state and passed through to the
member. Individual taxpayers, see Resident Booklet instructions for addition modification t. Fiduciary taxpayers, see Fiduciary Booklet Instruction 7.

Page 2

A person may be a resident of more than one state at the same
time for income tax purposes. If you must file a resident return
with both Maryland and another state, use the following rules to
determine where the credit should be taken:

PART A – IMPORTANT NOTE FOR DUAL RESIDENTS

1.	 A person who is domiciled in Maryland and who is subject to
tax as a resident of any of the states listed in Group I or II
can claim a credit on the Maryland return (Form 502) using
Part A of Form 502CR.

CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES CHART
Individual taxpayer, if your federal adjusted gross
income is:

Married Taxpayer, if your federal adjusted gross
income is:

At Least

But Less Than

Decimal Amount
(multiply by federal
credit)

At Least

But Less Than

$0

$30,001

0.3200

$0

$50,001

$30,001

$32,001

0.3168

$50,001

$53,001

$32,001

$34,001

0.3136

$53,001

$56,001

$34,001

$36,001

0.3104

$56,001

$59,001

$36,001

$38,001

0.3072

$59,001

$62,001

$38,001

$40,001

0.3040

$62,001

$65,001

$40,001

$42,001

0.3008

$65,001

$68,001

$42,001

$44,001

0.2976

$68,001

$71,001

$44,001

$46,001

0.2944

$71,001

$74,001

$46,001

$48,001

0.2912

$74,001

$77,001

$48,001

$50,001

0.2880

$77,001

$80,001

$50,001

$52,001

0.2848

$80,001

$83,001

$52,001

$54,001

0.2816

$83,001

$86,001

$54,001

$56,001

0.2784

$86,001

$89,001

$56,001

$58,001

0.2752

$89,001

$92,001

$58,001

$60,001

0.2720

$92,001

$95,001

$60,001

$62,001

0.2688

$95,001

$98,001

$62,001

$64,001

0.2656

$98,001

$101,001

$64,001

$66,001

0.2624

$101,001

$104,001

$66,001

$68,001

0.2592

$104,001

$107,001

$68,001

$70,001

0.2560

$107,001

$110,001

$70,001

$72,001

0.2528

$110,001

$113,001

$72,001

$74,001

0.2496

$113,001

$116,001

$74,001

$76,001

0.2464

$116,001

$119,001

$76,001

$78,001

0.2432

$119,001

$122,001

$78,001

$80,001

0.2400

$122,001

$125,001

$80,001

$82,001

0.2368

$125,001

$128,001

$82,001

$84,001

0.2336

$128,001

$131,001

$84,001

$86,001

0.2304

$131,001

$134,001

$86,001

$88,001

0.2272

$134,001

$137,001

$88,001

$90,001

0.2240

$137,001

$140,001

$90,001

$92,001

0.2208

$140,001

$143,001

$92,001

$94,001

0.2176

$143,001

$146,001

$94,001

$96,001

0.2144

$146,001

$149,001

$96,001

$98,001

0.2112

$149,001

$152,001

$98,001

$100,001

0.2080

$152,001

$155,001

$100,001

$102,001

0.2048

$155,001

$158,001

$102,001

$103,651

0.2016

$158,001

$161,001

---

---

0.1984

$161,001

$161,101

$103,651

and up

0.0000

$161,101

and up

MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

2.	 A person domiciled in any state listed in Group I or II who
must file a resident return with Maryland must take the
credit in the state of domicile.
PART B - CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES **For Maryland Residents Only**
If you were a Maryland resident eligible for a Child and Dependent Care Credit on your federal income tax return for tax year
2023, you may be entitled to a credit on your Maryland state
income tax return. The credit starts at 32% of the federal credit
allowed, but is phased out for taxpayers with federal adjusted gross incomes above $161,100* for married filing joint and
$103,650* for all other filing statuses. Use the CREDIT FOR CHILD
AND DEPENDENT CARE EXPENSES CHART to determine the decimal
amount to be entered on line 3 of Part B.
*NOTE: The FAGI figures indicated have been adjusted for taxable year 2023. For more information, visit marylandtaxes.
gov.
REFUNDABLE CHILD AND DEPENDENT CARE EXPENSES
TAX CREDIT WORKSHEET (21B)
1.	 Enter your Federal Adjusted Gross Income
​(FAGI) from line 1 of Form 502. If you
are filing an Individual return and your FAGI
is greater than $56,300* STOP, you are not
eligible for this refundable tax credit. If you
are filing a Joint return and your FAGI is
greater than $84,500* STOP, you are not
eligible for this refundable tax credit.	1.
2.	 Enter your Child and Dependent Care
Expenses tax credit from Part B, line 4 of
Form 502CR . . . . . . . . . . . . . . . . . . . . . . 2.
3.	 Enter Maryland tax (sum of
lines 21 and 21a of Form 502). . . . . . . . . . 3.
4.	 Subtract line 3 from line 2. If this amount
is zero (0) or less than zero (0), enter zero
(0). This is your Refundable Child and
Dependent Care Expenses Tax Credit. Enter
this amount in Part CC, line 7 of Form
502CR. . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
*NOTE: The FAGI figures indicated have been adjusted for
taxable year 2023. For more information, visit marylandtaxes.
gov.
PART C - QUALITY TEACHER INCENTIVE CREDIT
If you are a qualified teacher, you may be able to claim a credit
against your State tax liability for tuition paid to take graduatelevel courses required to maintain certification. This credit applies to individuals who:
a.	 Currently hold a standard professional certificate or advanced professional certificate;
b.	 Are employed by a county/city board of education in Maryland, a state or local correctional facility, or a juvenile correctional facility as listed below in the note;
c.	 Teach in a public school or qualified facility and receive a
satisfactory performance;
d.	 Successfully complete the courses with a grade of B or better; and
e.	 Have not been fully reimbursed by the state/county/city for
these expenses.
Only the unreimbursed portion qualifies for the credit.
Each spouse that qualifies may claim this credit. Complete a separate column in the worksheet for each spouse.

Page 3

NOTE: Qualified juvenile facilities are: the Alfred D. Noyes Children's Center; the Baltimore City Juvenile Justice Center; the
Charles H. Hickey, Jr. School; the Cheltenham Youth Facility;
the Lower Eastern Shore Children's Center; the Thomas J. S.
Waxter Children's Center; the Victor Cullen Center; the Garrett
Children's Center; the Western Maryland Children's Center; and
the youth centers.
INSTRUCTIONS
Line 1	Enter the name of the Maryland public school system
or State or local correctional facility or qualified juvenile
facility in which you are employed and teach.
Line 2	Enter the amount of tuition paid for graduate-level
courses for each qualifying teacher and the name of the
institution(s) to which it was paid.
Line 3	Enter the amount received as a reimbursement for tuition from your employer.
Line 5	The maximum amount of credit allowed is $1,500 for
each qualifying individual.
Line 6	The credit is limited to the amount paid less any reimbursement up to the maximum amount allowed for each
qualifying individual. Enter the lesser of line 4 or line 5.
Line 7	 Enter the total of line 6, for Taxpayers A and B. Also enter this amount on Part AA, line 3.
PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS
A credit is allowed for 100% of the amounts paid to purchase
new aquaculture oyster floats that are designed to grow oysters
at or under an individual homeowner’s pier. The devices must
be buoyant and assist in the growth of oysters for the width of
the pier. In the case of a joint return, each spouse is entitled to
claim the credit, provided each spouse purchases or contributes
to the purchase of a float. The credit amount is limited to the
lesser of the individual’s state tax liability for that year or the
maximum allowable credit of $500. In the case of a joint return,
each spouse must calculate their own state tax liability for limitation purposes.
PART E - LONG-TERM CARE INSURANCE CREDIT
A one-time credit may be claimed against the state income
tax for the payment of qualified long-term care (LTC) insurance
premiums as defined by the IRS (Publication 502) for a policy
to insure yourself, or your spouse, parent, stepparent, child or
stepchild, who is a resident of Maryland.
A credit may not be claimed if:
a.	 The insured was covered by LTC insurance prior to July 1,
2000;
b.	 The credit for the insured is being claimed in this year by
another taxpayer;
c.	 The credit is being or has been claimed by anyone in any
other tax year; or
d. The insured is a nonresident of Maryland.
The credit is equal to the LTC premiums paid per insured up to
the following amounts.
Amount

Age of Insured as of 12/31/23

$480

40 or less

$500

over 40 years

SPECIFIC INSTRUCTIONS
•	 Answer Questions 1 through 4. If you answered “yes” for any
of the questions, no credit is allowed for that individual.
•	 Complete Columns A through D of the worksheet for each

MARYLAND
FORM

502CR

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

qualifying insured individual who qualifies for the credit. If
more space is required, attach a separate statement.
•	 Enter in Column E the amount of premiums paid for each
qualifying insured individual up to the maximum for that age
group.
•	 Add the amounts in Column E and enter the total on line 5.
Also enter this amount on Part AA, line 5.		
PART F - CREDIT FOR PRESERVATION AND CONSERVATION EASEMENTS
Businesses or individuals may be eligible for a credit for an easement conveyed to the Maryland Environmental Trust, the Maryland Agricultural Land Preservation Foundation or the Maryland
Department of Natural Resources to preserve open space, natural resources, agriculture, forest land, watersheds, significant
ecosystems, viewsheds or historic properties if:
1.	The easement is perpetual;
2.	The easement is accepted and approved by the Board of
Public Works; and
3.	The fair market value of the property before and after the
conveyance of the easement is substantiated by a certified
real estate appraiser.
Individuals who are eligible to claim the Credit for Preservation
and Conservation Easements and who are not PTE members
must claim this credit on Part F of the Form 502CR. PTE members who are eligible for this credit must claim the credit on Form
500CR.
The credit is equal to the difference in the fair market values of
the property reduced by payments received for the easement.
If the property is owned jointly by more than one individual,
such as a married couple, each individual owner is entitled
to the credit based on their percentage of ownership. The
credit amount is limited to the lesser of the individual’s state tax
liability for that year or the maximum allowable credit of $5,000,
per owner, who qualifies to claim the credit. Complete a separate column in the worksheet for each spouse. In the case of
a joint return, each spouse must calculate their own state tax
liability for limitation purposes. Use the rules for filing separate
returns in Instruction 8 in the Resident booklet to calculate each
spouse’s Maryland tax. In the case of a fiduciary return, the fiduciary will complete the column for Taxpayer B only.
If the individual’s allowable credit amount exceeds the maximum
of $5,000, up to $5,000 can be carried forward each subsequent
year until the allowable credit is used up or 15 years, whichever
first occurs.
Complete lines 1-7 of Part F. If you itemize deductions, see
Instruction 14 in the Resident booklet. For line 1, enter the
amount by which the fair market value of the property before
the conveyance of the easement exceeds the fair market value
after the conveyance as substantiated by a certified real estate
appraiser, plus any carryover from the prior year.
The carryover amount can be found on Part F, line 7 of Form
502CR for tax year 2022.
For additional information, contact the Maryland Environmental
Trust at 410-514-7900, dnr.maryland.gov/met, the Maryland
Agricultural Land Preservation Foundation at 410-841-5860, or
the Department of Natural Resources at 410-260-8367.
PART G- Reserved
PART H - COMMUNITY INVESTMENT INCOME TAX CREDIT
Businesses or individuals who contribute to approved Community Investment Programs may be eligible for a credit against
the Maryland State income tax. Contributions must be made to

2023
Page 4

a nonprofit organization approved by the Department of Housing
and Community Development (DHCD). The taxpayer must apply
to and receive approval by the DHCD for each contribution for
which a credit is claimed.
Individuals who are eligible to claim the Community Investment
Tax Credit (CITC), and who are not PTE members may elect to
claim this credit on Part H of Form 502CR, instead of claiming the
credit on Form 500CR. However, an individual may not claim this
credit on both Form 500CR and Form 502CR. PTE members who
are eligible for this credit must claim the credit on Form 500CR.
Individuals who anticipate having a carryover of the CITC are
advised to use Form 500CR instead of Form 502CR. Individuals
who have an existing carryover on their 2022 Form 500CR may
elect to use Form 502CR if their Excess Carryover Credit is attributable only to the CITC.
The credit is limited to 50% of the approved contributions (including real property) not to exceed $250,000.
NOTE: A copy of the required approval from the DHCD must be
included with Form 502CR.
SPECIFIC INSTRUCTIONS
Line 1	 Enter the amount of excess CITC carryover from 2022.
Line 2	 Enter the amount of approved contributions on line 2.
Line 3	 Enter 50% of line 2.
Line 4	 Enter the amount from line 3 or $250,000, whichever is
less.
Line 5	 Add line 1 and line 4. Enter the result on line 5 and on
Part AA, line 8.
This credit is not refundable and is applied only against the Maryland State income tax. To the extent the credit is earned in any
year and it exceeds the State income tax, you are entitled to an
excess carryover of the credit until it is used or it expires five
years after the credit was earned, whichever comes first.
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite 450
Baltimore, MD 21202
410-209-5800
[email protected]
PART I – ENDOW MARYLAND TAX CREDIT
A taxpayer who makes a donation to a qualified permanent
endowment fund at an eligible community foundation may be
eligible for a credit against the Maryland State income tax. The
taxpayer must apply to the Maryland Department of Housing
and Community Development (DHCD) for a certification for the
donation. This certification must be attached to the Form 502CR
at the time the Maryland income tax return is filed.
Individuals who are eligible to claim the Endow Maryland income
tax credit, and who are not PTE members may elect to claim this
credit on Part I of Form 502CR, instead of claiming the credit on
Form 500CR. However, an individual may not claim this credit
on both Form 500CR and Form 502CR. PTE members who are
eligible for this credit must claim the credit on Form 500CR.
Individuals who anticipate having a carryover of the Endow
Maryland income tax credit are advised to use Form 500CR, instead of Form 502CR.
The credit is limited to 25% of the approved donation (in cash or
publicly traded securities) not to exceed $50,000.
NOTE: A copy of the required approval from the DHCD must be
included with Form 502CR.

MARYLAND
FORM

502CR

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

SPECIFIC INSTRUCTIONS
Line 1	 Enter the amount of excess Endow Maryland Income Tax
Credit carryover from 2022.
Line 2	 Enter the amount of approved donation to a qualified
permanent endowment fund.
Line 3	 Enter 25% of line 2.
Line 4	Enter the amount from line 3 or $50,000, whichever is
less.
Line 5	Add line 1 and line 4. Enter the result on line 5 and on
Part AA, line 9.
This credit is not refundable and is applied only against the Maryland State income tax. To the extent the credit is earned in any
year and it exceeds the State income tax, you are entitled to an
excess carryover of the credit until it is used, or it expires five
years after the credit was earned, whichever comes first.
NOTE: The amount of donation shown on line 2 requires an addition to income. See Instruction 12 in the Maryland Resident
Instruction Booklet.
For more information contact:
Department of Housing and Community Development
Division of Neighborhood Revitalization
2 N. Charles St., Suite 450
Baltimore, MD 21202
410-209-5800
[email protected]
PART J – PRECEPTORS IN AREAS WITH HEALTH CARE
WORKFORCE SHORTAGES TAX CREDIT
If you are a qualified licensed physician, a qualified physician
assistant, or a qualified nurse practitioner who served without
compensation as a preceptor, you may be eligible to claim a
nonrefundable credit against your State tax liability. There are
three credits for qualified preceptors. The first credit on line 1
is available for licensed physicians. The second credit on line 2
is available for nurse practitioners or licensed physicians. The
third credit on line 3 is available for physician assistants, nurse
practitioners, or licensed physicians.
A licensed physician who served as a physician preceptor in a preceptorship program authorized by an accredited medical school
in Maryland may claim a credit on line 1 in the amount of $1,000
for each student rotation for which the licensed physician served
as a physician preceptor without compensation. For purposes of
claiming the credit on line 1, “preceptorship program” means an
organized system of clinical experience that, for the purpose of
attaining specified learning objectives, pairs an enrolled student
of a Liaison Committee on Medical Education-accredited medical school in Maryland or an individual in a postgraduate medical training program in Maryland with a licensed physician who
meets the qualifications as a preceptor. To qualify for the credit,
the licensed physician must have worked in an area of Maryland identified as having a health care workforce shortage by the
Maryland Department of Health (MDH). The licensed physician
must have worked a minimum of three rotations, each consisting
of 100 hours of community-based clinical training. The amount
of this credit may not exceed $10,000.
A nurse practitioner or licensed physician who served as a preceptor in a preceptorship program approved by the Maryland
Board of Nursing may claim a credit on line 2 in the amount of
$1,000 for each nurse practitioner student for whom the nurse
practitioner or licensed physician served as a preceptor without compensation. For purposes of claiming the credit on line 2,
“preceptorship program” means an organized system of clinical
experience that, for the purpose of attaining specified learning

2023
Page 5

objectives, pairs a nurse practitioner student enrolled in a nursing education program that is recognized by the Maryland Board
of Nursing with a nurse practitioner or licensed physician who
meets the qualifications as a preceptor. To qualify for the credit,
a nurse practitioner or licensed physician must have worked in
an area of Maryland identified as having a health care workforce
shortage by the Maryland Department of Health. The nurse practitioner or licensed physician must have worked a minimum of
three rotations, each consisting of at least 100 hours of community-based clinical training. The amount of this credit may not
exceed $10,000.
A health care practitioner (i.e., a licensed physician, a physician
assistant, or a registered nurse practitioner) who served as a
preceptor in a preceptorship program approved by the Maryland Department of Health may claim a credit on line 3 in the
amount of $1,000 for each physician assistant student rotation for which the health care practitioner served as a physician assistant preceptor without compensation. For purposes
of claiming the credit on line 3, “preceptorship program” means
an organized system of clinical experience that, for the purpose
of attaining specified learning objectives, pairs an enrolled student of a physician assistant program in the State with a health
care practitioner who meets the qualifications of a preceptor.
To qualify for the credit, a health care practitioner must have
worked in an area of Maryland identified as having a health care
workforce shortage by the Maryland Department of Health. The
health care practitioner must have worked a minimum of three
rotations, each consisting of at least 100 hours of community-based clinical training in family medicine, general internal
medicine, or general pediatrics. The amount of this credit may
not exceed $10,000.
Eligibility for these credits is limited to funds budgeted. Applicants seeking certification will be approved on a first-come, firstserved basis. For more information, visit the Maryland Department of Health website at health.maryland.gov.
INSTRUCTIONS
Line 1	 Enter on line 1 the amount of the tax credit certified
by MDH for a licensed physician who served as a physician preceptor in a preceptorship program, paired with
enrolled student(s) of a liaison committee on medical
education-accredited medical school in Maryland or an
individual in a postgraduate medical training program in
Maryland
Line 2	 Enter on line 2 the amount of the tax credit certified by
MDH for a nurse practitioner or licensed physician who
served as a preceptor in a preceptorship program, paired
with nurse practitioner student(s) enrolled in a nursing
education program recognized by the Maryland Board of
Nursing.
Line 3	 Enter on line 3 the amount of the tax credit certified
by MDH for a physician assistant, nurse practitioner,
or licensed physician who served as a preceptor in a
preceptorship program, paired with physician assistant
student(s) enrolled in an education program recognized
by the Maryland Board.
Line 4	Add line 1, 2, and 3. Enter the result on line 4 and on
Part AA, line 10. This credit is limited to the State tax.
There is no carryover to another year.
NOTE: A copy of the required certification from the Maryland
Department of Health must be included with Form 502CR.
PART K – INDEPENDENT LIVING TAX CREDIT
An individual may claim a credit against their Maryland State
income tax equal to 50% of the qualified expenses incurred during a taxable year to install accessibility and universal visitability

MARYLAND
FORM

502CR

2023

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

features to or within a home.
“Accessibility and universal visitability features” means components of renovation to an existing home that improves access to
or within the home for individuals with disabilities.
“Qualified expenses” means costs incurred to install accessibility
and universal visitability features to or within a home.
For any taxable year, the credit may not exceed the lesser of: (i)
$5,000; or (ii) the State income tax imposed for the taxable year
calculated before the application of the credits allowed under §§
10–701, 10–701.1, and 10-741 of the Tax-General Article but
after the application of any other credit allowed.
The unused amount of the credit may not be carried over to any
other taxable year. The credit amount is limited to the lesser of
the individual's state tax liability for that year or the maximum
allowable credit of $5,000. The qualified expenses incurred must
be certified by the Maryland Department of Housing and Community Development. To claim the credit, an individual shall: (i) file
an amended income tax return for the taxable year in which the
qualified expenses were incurred; and (ii) attach a copy of the
Maryland Department of Housing and Community Development’s
certification of the approved credit amount to the amended income tax return.

Page 6

refundable credit against the State income tax if the taxpayer's federal adjusted gross income does not exceed $100,000.
The amount of the tax credit is equal to $1,000. For married
filing jointly, qualifying surviving spouse, and head of household whose federal adjusted gross income does not exceed
$150,000, the credit amount is $1,750 (reduced to $1,000 if only
one spouse filing jointly is at least age 65).
PART AA - INCOME TAX CREDIT SUMMARY
This part is to summarize Parts A through M. If the total from Part
AA, line 14 exceeds the state tax, the excess will not be refunded.
PART BB - LOCAL TAX CREDIT SUMMARY
This part is to summarize the total local tax credit available from
Part A. If the total from Part BB, line 1 exceeds the local tax, the
excess will not be refunded. See the Instructions to Part A for
questions concerning credit claimed for taxes paid to multiple
states and/or localities.
PART CC - REFUNDABLE INCOME TAX CREDITS
Line 1	 STUDENT LOAN DEBT RELIEF TAX CREDIT
The Student Loan Debt Relief Tax Credit may be claimed
by certain qualified taxpayers in the amount certfied by
the Maryland Higher Education Commission. Note: A
copy of the required certification from the Maryland Higher Education Commission must be included with Form 502CR. “Qualified taxpayer” means
an individual who has incurred at least $20,000 in undergraduate and/or graduate student loan debt and has
at least $5,000 in outstanding undergraduate and/or
graduate student loan debt when submitting an application for certification to the Maryland Higher Education
Commission. The amount of any tax credit approved by
the Maryland Higher Education Commission may not exceed $5,000. The refundable tax credit must be claimed
against the State income tax for the taxable year in
which the Maryland Higher Education Commission certifies the tax credit.

For more information, contact:
Maryland Department of Housing and Community Development
7800 Harkins Road
Lanham, MD 20706
301-429-7400
dhcd.maryland.gov/Pages/Contact-Us.aspx
[email protected]
PART L - ENDOWMENTS OF MARYLAND HISTORICALLY
BLACK COLLEGES AND UNIVERSITIES TAX CREDIT.
Taxpayers making donation to a qualified permanent endowment fund held at an eligible institution of higher education
(Bowie State University, Coppin State University, Morgan State
University, or University of Maryland Eastern Shore), may be
eligible for a credit of 25% of the amount of donation.

	

The tax credit application can be found at marylandtaxes.
gov and must be emailed to [email protected]
and will be approved on a first-come, first served basis by the
Comptroller of Maryland. The application must be submitted in
the calendar year the donation was made. Donors are required
to submit documentation from the institution showing proof of
donation within 30 days before a final tax credit certificate is
issued.
A taxpayer may claim the tax credit against the State income
tax in the amount stated on the tax credit certificate issued
by the Comptroller. If the credit exceeds the State income tax
for the taxable year, the excess credit is non-refundable, but
it may be carried forward and applied to succeeding taxable
years until fully utilized. A taxpayer is required to add back the
amount of the credit claimed to Maryland adjusted gross income
or Maryland modified income to the extent excluded from federal adjusted gross income.
Individual taxpayers that are eligible and are NOT PTE members, may elect to claim the credit using Form 502CR instead of
Form 500CR. However, a donor should NOT claim the credit on
both Form 500CR and Form 502CR. PTE members and corporations must claim this credit on Form 500CR. Fiduciaries will
claim this credit on Form 504CR.
PART M - SENIOR TAX CREDIT
A resident individual who is at least age 65 may claim a non-

Individuals applying for certification should submit an application to the Maryland Higher Education Commission
by September 15th of each year. The Maryland Higher
Education Commission shall prioritize tax credit recipients and amounts based on qualified taxpayers who:
	

(1)	 Have higher debt burden to income ratios;

	

(2)	 Graduated from an institution of higher education
located in Maryland;

	

(3)	 Did not receive a tax credit in a prior year;

	

(4)	 Were eligible for in-state tuition; or
(5) Are a state employee.

	

Specific Instructions

	

Enter the amount of the certified tax credit by the Maryland Higher Education Commission on line 1.

	

The total amount of the credit claimed under this section
shall be recaptured if the individual does not use the
credit approved under this section for the repayment of
the individual’s undergraduate and/or graduate student
loan debt within 3 years from the close of the taxable
year for which the credit is claimed. The individual who
claimed the credit shall pay the total amount of the credit
claimed as taxes payable to the State for the taxable year
in which the event requiring recapture of the credit occurs.

MARYLAND
FORM

502CR
	

For more information contact:
	
Maryland Higher Education Commission
	
6 North Liberty Street
	
Baltimore, MD 21201
	410-767-3300 or 800-974-0203
	
[email protected]

Line 2	 HERITAGE STRUCTURE REHABILITATION TAX
CREDIT
	

See Form 502S Instructions.

	

	

NOTE: You must file your income tax return electronically to claim any of the refundable credits
listed below:

	

See Form 500CR Instructions for qualifications for the
One Maryland Economic Development Tax Credit, the
Biotechnology Investment Incentive Tax Credit, Catalytic Revitalization Projects Credits, Small Business Relief Tax Credit, Film Production Activity Tax Credit, Small
Business Research and Development Tax Credit, the Innovation and Cybersecurity Incentive Tax Credits, and
Theatrical Production Tax Credit. You may download instructions from our website at marylandtaxes.gov.

	

The Maryland Child Tax Credit may be claimed by certain individual and joint married filers with one or more
qualifying children. Such filers with a federal adjusted
gross income of $15,000 or less may claim a credit for
each qualifying child in the amount of $500. There is
no limit on the number of qualifying children for which
the credit may be claimed, so long as they satisfy the
requirements.

	

A “qualified child” is (1) a dependent under the age of 6
on the last day of the tax year, or (2) a dependent over
age 5 and under age 17 who has a disability. “Child with
a disability” means a child who has been determined
through appropriate assessment as having autism,
deaf-blindness, hearing impairment, including deafness,
emotional disability, intellectual disability, multiple disabilities, orthopedic impairment, other health impairment, specific learning disability, speech or language
impairment, traumatic brain injury, visual impairment,
including blindness, and who because of that impairment
needs special education and related services. Note: A
copy of the required certification from a qualified physician stating the nature of the disability must be included
with Form 502CR.

Line 5	 CATALYTIC REVITALIZATION PROJECTS AND
HISTORIC REVITALIZATION TAX CREDIT

	

If you are an individual, business entity or nonprofit
organization, you may claim a tax credit in an amount
equal to 20% of the amount stated in the final tax credit
certificate issued by the Secretary of this subtitle for 5
consecutive taxable years beginning with the taxable
years in which the Catalytic Revitalization Projects is
completed.

	

If the tax credit allowed in any taxable year exceeds the
total tax otherwise payable by the individual, business
entity or nonprofit organization, a refund in the amount
of the excess may be claimed.

	

An individual may not claim this credit on both Form
502CR and Form 500CR. PTE members who are eligible
for this credit must claim the credit on Form 500CR.

	

NOTE: A copy of the required certification from the
Maryland Department of Housing and Community Development must be included.

Line 6	 FLOW-THROUGH NONRESIDENT PTE TAX CREDIT
	

If you are the beneficiary of a trust or a Qualified Subchapter S Trust for which nonresident PTE tax was paid,
you may be entitled to a credit for your share of that tax.
Enter the amount on this line and attach both the Maryland Schedule K-1 (504) for the trust and a copy of the
Maryland Schedule K-1 (510/511) issued to the trust by
the PTE.

This credit is applicable to residents only. If your Maryland credit for child and dependent care expenses exceeds your Maryland Tax, you may qualify for this credit.
See Form 502 Instructions.

	

If you repaid an amount this year reported as income on
a prior year federal return that was greater than $3,000,
you may be eligible for an IRC Section 1341 Repayment
credit. Attach documentation. For additional information,
see Administrative Release 40.

This is a refundable income tax credit for substantial
renovation of a property formerly owned by the state
or federal government that was previously used as a
college, K-12 school, hospital, mental health facility, or
military facility. The Department of Housing administers
the credit/issues certificates to projects.

If you are a member of a PTE for which nonresident tax
was paid, you may be entitled to a credit for your share
of that tax. Enter the amount on this line and attach
Maryland Schedule K-1 (510/511) issued to you and to
the partnership, limited liability company, or S Corporation, by the PTE.

Line 8	 MARYLAND CHILD TAX CREDIT

Line 4	 IRC SECTION 1341 REPAYMENT CREDIT

	

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Line 7	 CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES

Line 3	 REFUNDABLE BUSINESS INCOME TAX CREDITS

	

2023

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

REFUNDABLE CHILD TAX CREDIT WORKSHEET (21C)
YOU MAY CLAIM THIS CREDIT IF:
●	 YOUR federal adjusted gross income is $15,000 or less; and
●	 YOUR qualified dependent must be: (1) a child under the age
of 6 on the last day of the tax year, or (2) a child over age 5
and under age 17 who has a disability.	
1. Enter your Federal Adjusted Gross Income
that is equal or less than $15,000 from
line 1 of Form 502. Is line 1 greater than
$15,000? If yes, then STOP. YOU ARE NOT
ELIGIBLE TO CLAIM THIS CREDIT. If no,
proceed to line 2 . . . . . . . . . . . . . . . . . . 1.
2. Maryland child tax credit (multiply $500 by
the number of qualified children included on
Form 502B)
X $500 . This is your
child tax credit. Enter the amount here and
on Part CC line 8 of Form 502CR . . . . . . . . 2.
Line 9	PTE TAX PAID ON MEMBERS’ DISTRIBUTIVE OR
PRO RATA SHARES OF INCOME TAX CREDIT
	

If you are a member of a PTE (pass-through entity) or
a beneficiary of a business trust which elected to pay
the tax imposed with respect to members’ distributive or
pro rata shares, you may be entitled to a credit for your
share of that tax paid. Enter the amount on this line and
attach Maryland Schedule K-1 (Form 510/511) issued to you.

MARYLAND
FORM

502CR

INCOME TAX CREDITS FOR
INDIVIDUALS INSTRUCTIONS

Line 10	Add lines 1 through 9. Enter the total on the appropriate
line of the income tax form being filed.
PART DD Recapture of Previously Claimed Credit
If you: (1) received a student loan debt relief tax credit certificate in tax year 2020, (2) claimed the credit
on your 2020 return, AND (3) did not use the entire
amount of the credit to repay student loan debt or failed
or provide the Maryland Higher Education Commission
proof that you used the entire amount to repay student
loan debt, then the amount of the credit must be repaid as taxes for tax year 2023. If any amount of the
credit claimed on the tax return is not used to repay undergraduate or graduate student loan debt, the entire
credit amount must be repaid. Enter the amount of the
credit to be recaptured on Part DD, line 1.

2023
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