Maryland Income Tax Forms & Instructions Booklet

Income Tax Forms & Instructions Booklet
2023 Resident Tax Forms and Instructions
MARYLAND

2023 State & Local Tax Forms & Instructions
For filing personal state and local income taxes for full or part-year Maryland residents

Maryland Ice Cream Trail
You can follow the Maryland Ice
Cream Trail around the state and
indulge in delicious desserts while
also supporting Maryland’s dairy
farms.

Sno(w)balls

As legends go, Baltimoreans have enjoyed
shaved ice – called Snoballs or Snowballs
– since the 1800s. Ice trucks would pass
through Baltimore and employees would
share shavings with local kids, whose
parents added flavors – including egg
custard – back at home.

Brooke E. Lierman, Comptroller

Smith Island Cake

A beloved Maryland tradition, the
official State Dessert is a standout
on any table. With its thin layers of
yellow cake and decadent icing,
Smith Island is almost too
beautiful to eat… but we do
anyways. Enjoy!

Scan to check your refund
status after filing.

Oh, How Sweet It Is!
Welcome to the Maryland 2023 Tax Year Booklet
In this first year of a four-year term, our team is excited to embark upon a
rotation of covers highlighting the best of Maryland – the most delicious, the
most fun, the unique aspects of our state. And we’re starting with desserts!
Maryland has so many delicious options we couldn’t include them all – the
Lemon Drop and Berger Cookies just to name a couple more. Read below to
learn more about the desserts we highlighted on the cover and send us your
ideas on the attributes that make Maryland special that we should highlight
in the coming years.
The Maryland Ice Cream Trail
The Maryland Ice Cream Trail features nine on-farm creameries across the
state that produce and sell their ice cream directly to consumers. The trail
stretches more than 290 miles from Washington County in the west to
Worcester County in the east. The trail aims to increase the public’s
understanding of dairy farming and highlight the important contributions of
Maryland’s dairy farms. According to the University of Maryland Extension,
Maryland is home to over 40,000 dairy cows spread across 310 farms
throughout the state. Learn more and see information about all the dairies
along the trail at https://marylandsbest.maryland.gov/.
Maryland Sno(w)balls
In Maryland, sno(w)balls are a favorite summertime delicacy originating in
the mid-1800s in Baltimore. Shaved ice, flavoring syrup, and toppings are
used to make them. Large slabs of ice are shaved into a fine snow to create
the shaved ice (unlike a snow cone, which has coarse and granular ice). One
of the most common original flavors was egg custard—made with eggs,
vanilla, and sugar. This flavor is still popular today, and is often topped with
marshmallow. and that's still the most popular flavor to this day, now
mimicked with a vanilla-laced syrup.
Sno(w)balls are now sold everywhere throughout Maryland, from ice cream
parlors to roadside kiosks. They are a refreshing and affordable way to cool
down on a hot summer day.
Smith Island Cake
In 2008, the Smith Island Cake became Maryland’s state dessert! According
to the Smith Island Cake Company, Smith Island Cakes have been made
since the 1800's, when women on the island would send them with their
husbands on the autumn oyster harvest. The cakes were a symbol of
community and togetherness, meant to remind the men of the community
they had left behind. The cake features 9 layers of thin yellow cake layers
and chocolate fudge frosting. Smith Island was charted by Captain John
Smith in 1608 and lies 12 miles west from Crisfield in the middle of the
Chesapeake Bay. Its population is close to 200 residents and makes for a
great spot to explore!

Brooke E. Lierman
Comptroller

Comptroller of Maryland

A Message from the Comptroller

Dear Marylander,
Greetings! Thank you for taking the time to review our 2023 Maryland State Tax
Forms and Instructions. We compile this publication each year to help guide
Maryland residents through the tax filing process and to provide updates on
changes in the tax code.
This year has been an exciting one in the Office of the Comptroller! I’m thrilled to be serving
as the 34th Comptroller of Maryland and the first woman to hold this position. In this role, I’m
honored to be leading a dedicated team of over 1,100 members, headquartered in Annapolis
and with 11 branch offices around the state to better serve all Marylanders.
Our agency’s role as the state’s revenue administrator is critical to the economic vitality of our
state. As your Comptroller, I am committed to reimagining how this office can operate more
efficiently and transparently, using data to drive decision-making at every level. Each year, our
team processes more than 3 million individual state tax returns with refunds totaling over $2
billion, in addition to working with businesses and communities on a host of other types of taxes
– from the biotech tax credit to sales and use taxes, including the new tax on cannabis sales.
My team is determined to make government work better for you and all Marylanders by
investing in our workforce and updating our outdated technology so that we can increase
transparency and improve customer service. We are also devoted to better positioning Maryland
for long-term growth and success. Finally, by offering robust public engagement to connect with
families, communities, businesses, and local governments, we are working to ensure that the
resources and expertise of our agency are reaching Marylanders.
We look forward to working with you, your community, or your business! Only through building
strong partnerships can we ensure our communities and businesses are growing and thriving.
Please contact our team for assistance at 1-800-MDTAXES or email us at taxhelp@maryland
taxes.gov. Be well and keep in touch!
My Best,

Brooke E. Lierman
80 CALVERT STREET
MARYLAND RELAY 711

ANNAPOLIS, MARYLAND
TTY 410-260-7157

21401

410-260-7801

1-800-552-3941 (MD)

[email protected]

WWW.MARYLANDTAXES.GOV

TABLE OF CONTENTS
Filing Information. . . . . . . . . . . . . . . . . . . . . . . . ii
Assembling your return. . . . . . . . . . . . . . . . . . .  iii
Five Fast FAQs . . . . . . . . . . . . . . . . . . . . . . . . .  iii

INSTRUCTION. . . . . . . . . . . . . . . . . . PAGE
1.	 Who must file?. . . . . . . . . . . . . . . . . . . . . . .  1
2.	 Use of federal return. . . . . . . . . . . . . . . . . . .  2
3.	 Maryland Healthcare Coverage. . . . . . . . . . . .  2
4.	 Name and address. . . . . . . . . . . . . . . . . . . .  2
5.	 Social Security Number(s). . . . . . . . . . . . . . .  2

NEW FOR 2023
New Subtraction Modifications: There is one new subtraction
modification and three subtraction modifications that have been updated. For more information, see Instruction 13 (Line 13, Code Letters k., yc., u., and yb.).
New Addition Modification: There is a new addition modification
for resident members of a pass-through entity that is taxed at the
entity level in another state. This new addition modification is addition t. See instruction 12.
Tax Credits: There are two updated tax credits for qualified individuals. For more information, see Instruction 18 (Line 24 code letter b.) and Instruction 21 (Line 43, #1). There is one new tax credit
for businesses. For more information, see Instruction 18 (Line 25,
code letter y.).

6.	 Maryland Political Subdivision information. . . .  3

New Legislation	

7.	 Filing status. . . . . . . . . . . . . . . . . . . . . . . . .  4

House Bill 547 / Senate Bill 552, Acts of 2023: This bill permanently extends the 2021 expansion of the refundable Maryland
EITC to 45% of the federal EIC. This bill, the Family Prosperity Act
of 2023 also eliminates the existing limit of the refundable EITC for
individuals without qualifying children so that they can claim 100%
of the federal EITC as a refundable state income tax credit and permanently allows individuals with ITINs to claim the EITC. Child Tax
Credit: The maximum FAGI to claim the credit is now $15,000 rather
than $6,000.

8.	 Special instructions for married
filing separately.. . . . . . . . . . . . . . . . . . . . . .  4
9.	 Part-year residents. . . . . . . . . . . . . . . . . . . .  5
10.	Exemptions. . . . . . . . . . . . . . . . . . . . . . . . .  5
11.	Income. . . . . . . . . . . . . . . . . . . . . . . . . . . .  5
12.	Additions to income . . . . . . . . . . . . . . . . . . .  5
13.	Subtractions from income. . . . . . . . . . . . . . .  7
14.	Itemized Deductions. . . . . . . . . . . . . . . . . . . 12
15.	Figure your Maryland Adjusted Gross Income. 13
16.	Figure your Maryland taxable net income . . . . 13
17.	Figure your Maryland tax. . . . . . . . . . . . . . . . 13
18.	Earned income credit, poverty level credit,
credits for individuals and business tax credits.13

Senate Bill 243, Acts of 2023: This bill clarifies that the child and
dependent care tax credit is available to residents only.
House Bill 680, Acts of 2023: This existing income tax credit has
been modified to extend the period allowed to use the credit for repayment of student loans from 2 to 3 years.
This bill also increases the total credit available.

20.	Total Maryland tax, local tax
and contributions. . . . . . . . . . . . . . . . . . . . . 17

House Bill 346 / Senate Bill 312, Acts of 2023: This bill makes
the $250,000 distribution from the State’s Unclaimed Property Fund
by the Comptroller to the Tax Clinics for Low-Income Marylanders
Fund (TCLIM) permanent beginning in fiscal year 2024.

21.	Taxes paid and refundable credits.. . . . . . . . . 17

New Local Tax Brackets for 2023:

22.	Overpayment or balance due. . . . . . . . . . . . . 19

Anne Arundel Co. The local tax rates for taxable year

23.	Telephone numbers, code number, signatures
and attachments.. . . . . . . . . . . . . . . . . . . . . 20

2023 are as follows:

24.	Electronic filing, mailing and payment
instructions, deadlines and extension. . . . . . . 20

$1 through $50,000; and

19.	Local income tax and local credits . . . . . . . . . 16

(1) .0270 of an individual’s Maryland taxable income of

25.	Fiscal year. . . . . . . . . . . . . . . . . . . . . . . . . . 21

(2) .0281 of an individual’s Maryland taxable income in

26.	Special instructions for part-year residents.. . . 21

excess of $50,000.

27.	Filing return of deceased taxpayer. . . . . . . . . 22

** Frederick Co. The local tax rates for taxable year 2023

28.	Amended returns. . . . . . . . . . . . . . . . . . . . . 23
29.	Special instructions for military taxpayers. . . . 23
•	 Maryland Tax Tables. . . . . . . . . . . . . . . .  25-31
•	 Anne Arundel County tax Table. . . . . . . .  33-39

Forms and other information included in this booklet:
•	 Form 502
•	 Form PV
•	 Form 502B

are as follows:
(1) .0275 for taxpayers with Maryland taxable income
of $100,000 or less and a filing status of married
filing joint, head of household, and qualifying
widow(er) with dependent child;
(2) .0275 for taxpayers with Maryland taxable income
of $50,000 or less and a filing status of single, married
filing separately, and dependent; and
(3) .0296 for all other taxpayers.

•	 Form 502R
•	 Form 502SU
•	 Form 502UP
•	 Privacy act information
•	 Maryland Payment Voucher Worksheet (PVW)
for Estimated Tax and Extension Payments
•	 State Department of Assessments and
Taxation Information
i

•	 	Local Tax: Use the correct local income tax rate, based
on your county of residence on the last day of the tax year
for where you lived on December 31, 2023, or the last day
of the year for fiscal filers. See Instruction 19.

GETTING HELP
•	 Tax Forms, Tax Tips, Brochures and Instructions:
These are available online at marylandtaxes.gov and
branch offices of the Comptroller (see back cover). For
forms only, call 410-260-7951.

•	 	Original Return: Send only your original completed
Maryland tax return. Photocopies can delay processing of
your refund. If you filed electronically, do not send a paper
return.

•	 Telephone: February 1 - April 15, 2024, 8:30 a.m. until
6:00 p.m., Monday through Friday, call 1-800-MDTAXES (1800-638-2937) or from Central Maryland 410-260-7980.

•	 	Federal Forms: Do not send federal forms, schedules or
copies of federal forms or schedules unless requested.

•	 Email: Contact [email protected].
•	 Extensions: To telefile an extension, call 410-260-7829; to
file an extension online, visit marylandtaxes.gov.

•	 	Photocopies: Remember to keep copies of all federal
forms and schedules and any other documents that may
be required later to substantiate your Maryland return.

RECEIVING YOUR REFUND
•	 Direct Deposit: To have your refund deposited to your
bank or other financial account, enter your account
number, routing numbers, and the name(s) as it appears
on the bank account at the bottom of your return.

•	 	Ink: Use only blue or black ink to complete your return.
Do not use pencil.
•	 	Attachments: Make sure to send all wage and tax
statements such as W-2s, 1099s and K-1s. Ensure that the
state tax withheld is readable on all forms. Ensure that the
state income modifications and state tax credits are clearly
shown on all K-1s.

•	 Deposit of Income Tax Refund to more than one
account: Form 588 allows income tax refunds to be
deposited to more than one account. See Instruction 22
for more information. Check with your financial institution
to make sure your direct deposit will be accepted and to
get the correct routing and account numbers. The State of
Maryland is not responsible for a lost refund if you enter
the wrong account information.

•	 	Colored Paper:
colored paper.

Do not print the Maryland return on

•	 Barcodes: Do not staple or destroy the barcode.
PAYING YOUR TAXES

•	 Check: Unless otherwise requested, we will mail you a
paper check.

•	 	Direct Debit: If you file electronically and have a balance
due, you can have your income tax payment deducted
directly from your bank account. This free service allows you
to choose your payment date, anytime until April 30, 2024.
Visit marylandtaxes.gov for details.

•	 Refund Information: To request information about
your refund, visit marylandtaxes.gov, or call the refund
information line 1-800-218-8160 or from Central Maryland
410-260-7701.

•	 	Bill Pay Electronic Payments: If your paper or electronic
tax return has a balance due, you may pay electronically at
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.

FILING ELECTRONICALLY
•	 	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.

•	 	Checks and Money Orders: Make check or money order
payable to Comptroller of Maryland. We recommend you include
your Social Security Number on your check or money order.

•	 	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-theart threat detection and encrypted transmissions.

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

•	 	iFile: Free Internet filing is available for Maryland income tax
returns with no income limitation at https://interactive.
marylandtaxes.gov/Individuals/iFile_ChooseForm/
default.asp.

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.

•	 	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.
•	 	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.

If you fail to provide all or part of the requested information,
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.

•	 	IRS Free File: Free Internet filing is available for federal
income tax returns; some income limitations may apply. Visit
irs.gov for eligibility. Fees for state tax returns also may
apply; however, you may always return to marylandtaxes.
gov to use the free iFile Internet filing for Maryland income
tax returns after using the IRS Free File for your federal
return.

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, an authorized 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.

AVOID COMMON ERRORS
•	 	Social Security Number(s): Enter each Social Security
Number in the space provided at the top of your tax return.
Also enter the Social Security Number for children and other
dependents. The Social Security Number will be validated
by the IRS before the return has completed processing.

If you opt in, certain information from your return may beshared
with the Maryland Health Connection (see Instruction 3).
ii

WHAT YOU SHOULD SEND

ASSEMBLING YOUR RETURN

•	 Your original, completed Maryland income tax return
(Form 502) and Dependents Form 502B as applicable. To
prevent any delay of processing your return, the content
of the return must be fully printed on a letter-size 8 ½” X
11” paper without any shrinkage or reduction.

502B/502CR
502

•	Form PV for returns with payment by check or money
order. Attach the payment to the Form PV. The Form PV
and payment are placed before the Form 502 for mailing
purposes. The Form PV and payment are not attached
to the Form 502.

W2

502B/502CR
502 MD TAX RETURN

W2	

2023

•	 Form 502R if you have taxable retirement income.
ATTACH
W2(S)/1099(S)
WITH ONE STAPLE
IN CENTER OF
PAGE

•	 Form 588 if you elect to have your refund direct deposited
to more than one account.
•	 W-2(s)/1099(s) showing Maryland tax withheld.
•	 Schedules K-1 showing Maryland tax withheld and/or
Maryland tax credit.
•	 If you have a balance due, and if not filing and paying
electronically, include a check or money order payable
to Comptroller of Maryland with your Social Security
Number / ITIN, tax year, and tax type. Failure to include
this information will delay the processing of your payment.
on the check or money order.

PV

•	 Maryland schedules or other documents may be required
according to the instructions if you claim certain credits
or subtractions. These include: 500DM, 502CR, 502TP,
502UP, 502V, 502S, and 502SU.

PV

CHECK/
MONEY
ORDER

•	 A copy of the tax return you filed in the other state or
locality if you’re claiming a tax credit on Form 502CR,
Part A.
DO NOT SEND

Checks must be written in
blue or black ink only

•	 Photocopies of your Maryland return.

ATTACH
PAYMENT TO
PV WITH ONE
STAPLE IN
CENTER
OF PAGE

•	 Federal forms or schedules unless requested.
•	Any forms or statements not requested.
•	 Returns by fax.
•	 Returns on colored paper.
•	 Returns completed in pencil.
•	 Returns with the barcode stapled or destroyed.

FIVE FAST FREQUENTLY ASKED QUESTIONS
1. Pension Exclusion.

	

Q:	 Can I claim both pensions exclusions, the standard on
line 10a and the Retired Forest/ Park/ Wildlife Ranger on
line 10b of Form 502?
A:	 No. You may only claim one pension exclusion per
individual based on age. See instructions 13 for details.
2. Pension Exclusion Qualifying Plans.
Q:	 Do 401 (k) and 403(b) plans qualify for the pension
exclusion?
A:	 Yes, but an IRA does not. For more information, refer to
Line 10a. of Instruction 13; the chart in the Instructions
of Form 502R; or visit marylandtaxes.gov.
3. Itemized deductions.
Q:	 Can I claim itemized deductions on my Maryland return if
I claimed standard deduction on my federal return?
A:	 No. You may claim itemized deductions on your Maryland
return only if you claimed itemized deductions on your
federal return. If you claimed your itemized deductions
on your federal return, you may figure your tax using
both deduction methods to determine which is best for
you.

iii

Note: Due to the State and local tax limitations (SALT),
the state and local tax line 17b of Form 502 is capped
at $10,000 or $5,000 if married filing separately plus
any amount deducted to claim the Preservation and
Conservation Easements tax credit from part F of the
Form 502CR.

4. Physical Address of the taxing area.
Q:	 What is my physical address as of December 31st or the
last day of the taxable year?
A:	 Your Maryland resident address. If you moved during
the taxable year, your physical address is your Maryland
resident address on the last day you resided in Maryland.
Q:	 What is my 4-digit political subdivision code / taxing
area?
A:	 Your 4-digit code represents the taxing area based on
your Maryland physical address.
5. PV – Use for personal taxes only.
Q:	 Can I use the Form PV for payments of anything other
than my personal taxes?
A:	 No. The Form PV is used to remit balance due payments
for Forms 502 and 505, estimated payments, and
extension payments.

SUPPORT CHILDREN AND ADULTS WITH DEVELOPMENTAL DISABILITIES
Children and adults with developmental disabilities, such as autism
and Down syndrome, count on concerned citizens like you to help
the Developmental Disabilities Administration provide:
•	 Support services
•	 Job training and employment
•	 Community living opportunities
•	 Crisis intervention

DO NOT WAIT — PLEASE DONATE!
Your gift will be deducted from your tax refund or added to your tax payment.
Use line 36 on Form 502, line 23 on Fiduciary Form 504 or line 39 on Non Resident Form 505
For more information, call the Developmental Disabilities Administration at 410-767-5600 or visit health.maryland.gov/dda.

MARYLAND
FORM

502

2023

RESIDENT INCOME TAX
RETURN INSTRUCTIONS

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

DUE DATE
Your return is due by April 15, 2024. If you are a fiscal year taxpayer, see Instruction 25. If any due date falls on a Saturday,
Sunday, or legal holiday, the return must be filed by the next
business day.

1	

WHO MUST FILE?

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.

This booklet and forms are for residents and part-year residents
of Maryland. In general, you must file a Maryland return if you
are or were a resident of Maryland AND you are required to file
a federal return. Information in this section will allow you to
determine if you must file a return and pay taxes as a resident
of Maryland. If you are not a resident but had Maryland tax
withheld or had income from sources in Maryland, you must use
Form 505 or 515, Nonresident Tax return.

COMPLETING THE RETURN
You must write legibly using blue or black ink when completing
your return.

WHO IS A RESIDENT?

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. Failure to follow these instructions will
delay the processing of your return.

You are a resident of Maryland if:
a.	 Your permanent home is or was in Maryland (the law refers
to this as your domicile).
OR

You may round off all cents to the nearest whole dollar. Fifty
cents and above should be rounded to the next dollar. State
calculations are rounded to the nearest cent.

b.	 Your permanent home is outside of Maryland, but you maintained a place of abode (a place to live) in Maryland for more
than six months of the tax year. If this applies to you and you
were physically present in the state for 183 days or more,
you must file a full-year resident return.

ELECTRONIC FILING INSTRUCTIONS
The instructions in this booklet are designed specifically for filers of paper returns.

PART-YEAR RESIDENTS
If you began or ended residence in Maryland during the tax year,
you must file a Maryland resident income tax return. See Instruction 26.

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.

MILITARY AND OTHERS WORKING OUTSIDE OF MARYLAND

Free internet filing is available for Maryland income tax returns. Visit
marylandtaxes.gov/online-services/individuals.php

Military and other individuals whose domicile is in Maryland, but
who are stationed or work outside of Maryland, including overseas, retain their Maryland legal residence. Maryland residency
is not lost because of duty assignments outside of the State; see
Administrative Release 37. Military personnel and their spouses
should see Instruction 29.

Software vendors should refer to the e-file handbook for
their instructions.

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 the package or all forms have
been approved for use.

TO DETERMINE IF YOU ARE REQUIRED TO FILE A
MARYLAND RETURN
a.	 Add up all of your federal gross income to determine your
total federal income. Gross income is defined in the Internal Revenue Code and, in general, consists of all income regardless of 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 modifications or deductions reduce 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.

To confirm that a software package or a specific form has been
approved by the Comptroller or to see a list of Approved Software
Vendors for Maryland Substitute Forms, visit marylandtaxes.gov
and search Approved Vendors.

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, and a penalty on your taxes.
In addition, interest is charged on amounts not paid.

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

MINIMUM FILING LEVELS TABLES
TABLE 1
MINIMUM FILING LEVELS FOR TAXPAYERS UNDER 65

TABLE 2
MINIMUM FILING LEVELS FOR TAXPAYERS 65 OR OVER

Single person (including dependent taxpayers). . . . . .
Joint Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Married persons filing separately. . . . . . . . . . . . . . . .
Head of Household . . . . . . . . . . . . . . . . . . . . . . . . .
Qualifying surviving spouse . . . . . . . . . . . . . . . . . . .

Single, age 65 or over. . . . . . . . . . . . . . . . . . . . . . .
Joint Return, one spouse, age 65 or over. . . . . . . . . .
Joint Return, both spouses, age 65 or over . . . . . . . .
Married filing separately, age 65 or over . . . . . . . . . .
Head of Household, age 65 or over. . . . . . . . . . . . . .
Qualifying surviving spouse, age 65 or over. . . . . . . .

$. 13,850
$. 27,700
$	13,850
$ .20,800
$ .27,700

1

$ .15,700
$ .29,200
$ .30,700
$	13,850
$ 	22,650
$ .29,200

c.	 Add to your total federal income any Maryland additions to
income. Do not include any additions related to periods of
nonresidence. See Instruction 12. This is your Maryland
gross income.

If you authorize information sharing, we will share the following
information with MHC:

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

• Your current mailing address, email address, and phone
number;

•	 Name, SSN/ITIN, and date of birth of each individual identified on your return;

• Filing status reported on your return;
• Total number of individuals in your household included in
your return;

e.	 You must file a Maryland return if your Maryland gross income equals or exceeds the income levels in the MINIMUM
FILING LEVEL TABLE 1.

• Insured/ uninsured status of each individual included in
your return;

f.	 If you or your spouse is 65 or over, use the MINIMUM FILING
LEVEL TABLE 2.

• Blindness status;
• Relationship (self, spouse, or dependent) to the primary taxpayer for each individual included in your return; and

IF YOU ARE NOT REQUIRED TO FILE A MARYLAND RETURN BUT HAD MARYLAND TAXES WITHHELD.

• Your federal adjusted gross income amount from Line 1.

To get a refund of Maryland income taxes withheld, you must file
a Maryland return.

Information shared with MHC will be used to determine eligibility for insurance affordability programs or to assist with enrollment in health coverage. If you would like more information about the health insurance affordability programs or health
care coverage enrollment, visit Maryland Health Connection at
marylandhealthconnection.gov/easyenrollment/.

Taxpayers who are filing for refund only, should complete all of
the information at the top of Form 502 and the following lines:
	
1-16
	
22*, 29*
	35-44
	
46, 48
*Enter a zero unless: (i) you claim an earned income credit on
your federal return, or (ii) you do not meet the minimum age
requirement under the federal credit, but are otherwise eligible
for the federal credit, for those without a qualifying child.

4	

NAME AND ADDRESS.

Print using blue or black ink.
Enter your name exactly as entered on your federal tax return.
If you changed your name because of marriage, divorce, etc., be
sure to report the change to the Social Security Administration
before filing your return. This will prevent delays in the processing of your return.

Sign the form and attach withholding statements (all W-2 and
1099 forms) showing Maryland and local tax withheld equal to
the withholding you are claiming. Your form is then complete.

2	

USE OF FEDERAL RETURN.

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. 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.

First complete your 2023 federal income tax return.
You will need information from your federal return to complete
your Maryland return. Complete your federal return before
you continue. 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 federal Form
1040NR, visit marylandtaxes.gov for further information. All
items reported on your Maryland return are subject to verification, audit, and revision by the Maryland State Comptroller’s
Office.

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

5	

SOCIAL SECURITY NUMBER(S) (SSN).

3	

MARYLAND HEALTHCARE COVERAGE.

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.

The Maryland General Assembly enacted Chapter 423 in the
2019 Session requiring the collection of certain information, including whether an individual is uninsured at the time the tax
return is filed and whether the individual is interested in having Maryland Health Connection (“MHC”) determine whether an
individual may be eligible for insurance affordability programs,
such as no-cost or low-cost minimum essential health care coverage.

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 dependent(s) do not have a SSN
and you 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; and enter it wherever your SSN is requested on the
return.

Check the appropriate box on Form 502 for you and/or your
spouse if you are uninsured as of the date you file your return.
If you would like MHC to determine pre-eligibility for health insurance affordability programs for any uninsured member of
your household, you must also check the box on Form 502 indicating you authorize the Comptroller to share information from
your tax return with MHC, which is operated by the Maryland
Health Benefit Exchange.

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.

For each dependent identified on Form 502B, check the appropriate box to indicate if that dependent is an uninsured individual as of the date the return is filed.

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
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.

You must provide the date of birth for any uninsured individual
who is interested in obtaining minimum essential health coverage.
2

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, on one of the code
number lines located to the right of the telephone number area
on page 4 of the form; attach a copy of the child’s death certificate to your return.

DIVISION CODE line.
	When selecting the 4 Digit Political Subdivision Code,
be sure that you have selected the proper political subdivision from the LIST OF INCORPORATED CITIES,
TOWNS AND TAXING AREAS IN MARYLAND. Do not rely on
your ZIP Code + 4 to identify the proper political subdivision.
For example, most residents within the ZIP Code of Upper
Marlboro do not reside in the political subdivision of the Town
of Upper Marlboro. Therefore, entering the Town of Upper
Marlboro on the 4 DIGIT POLITICAL SUBDIVISION CODE line
for those with a ZIP Code in Upper Marlboro may not be correct. Also, some political subdivisions have similar names
such as Bel Air in Allegany County and Town of Bel Air in Harford County or Town of Chevy Chase and Town of Chevy Chase
View. You may contact your county seat for further information relating to the incorporated boundaries of incorporated
cities, towns and taxing areas in your county.
2.	If you lived within the incorporated tax boundaries of one of
the areas listed under your county as found in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND, write the name of the city, town or taxing area on the
MARYLAND POLITICAL SUBDIVISION line. If you did not live
within the incorporated tax boundaries of one of the areas
listed under your county as found in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND,
write the name of your county on the MARYLAND POLITICAL
	

6	

MARYLAND POLITICAL SUBDIVISION INFORMATION (REQUIRED).

Fill in the lines for your Maryland physical address of the
taxing area as of December 31, 2023, including political
subdivision lines, based on your residence on the last day
of the taxable period. Part-year residents fill in the lines
for your Maryland physical address, including political
subdivision lines, based on your last day of residence in
Maryland in the taxable period. Military personnel who
are legal residents of Maryland should fill in the lines for
your Maryland physical address, including political subdivision lines, based on the Maryland physical address that
is used for claiming Maryland as your Home of Record on
file with the Defense Finance and Accounting Service for
tax year 2023.
1.	Find your 4 Digit Political Subdivision Code in the LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND and enter this number on the 4 DIGIT POLITICAL SUB-

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

8	

SUBDIVISION line. If you lived in Baltimore City, enter “Baltimore City” on the MARYLAND POLITICAL SUBDIVISION line.
For additional information on your Maryland political subdivision, contact your locality or the Maryland Department of
Planning.
3.	Enter your street number and street name on MARYLAND
PHYSICAL ADDRESS LINE 1. DO NOT ENTER A PO BOX NUMBER.
4.	If applicable, enter the floor, suite or apartment number on
MARYLAND PHYSICAL ADDRESS LINE 2. DO NOT ENTER A PO
BOX NUMBER.
5.	Enter the city or town in which you resided on the CITY line.
6.	Enter the ZIP Code + 4 in which you resided on the ZIP Code
+ 4 line.
7.	Enter the name of your county on the MARYLAND COUNTY
line. If you lived in Baltimore City, leave the MARYLAND
COUNTY line blank.

SPECIAL INSTRUCTIONS FOR MARRIED PERSONS FILING SEPARATELY.

If you and your spouse file a joint federal return but are
filing separate Maryland returns according to Instruction
7, follow the instructions below.
If you and your spouse file a joint federal return but are filing separate Maryland returns according to Instruction 7, you
should report the income you would have reported had you filed
a separate federal return. The income from jointly held securities, property, etc., must be divided evenly between spouses.
If you itemized your deductions on the joint federal return, one
spouse may use the standard deduction and the other spouse
may claim those deductions on the federal return that are “attributable exclusively” to that spouse, plus a prorated amount
of the remaining deductions. If it is not possible to determine
these deductions, the deduction must be allocated proportionately based on your share of the income.

7	

“Attributable exclusively” means that the individual is solely responsible for the payment of an expense claimed as an itemized deduction, including compliance with a valid court order or
separation agreement; or the individual jointly responsible for
the payment of an expense claimed as an itemized deduction
can demonstrate payment of the full amount of the deduction

FILING STATUS.

MARRIED PERSONS
(Married on the last day of the tax year.)

SINGLE PERSON
(Single on the last day of the
tax year.)

Use the FILING STATUS chart below to determine your filing status. Check the correct FILING STATUS box on the
return.
If you are:

Check the box for:

Additional Information

Any person who can be claimed as a
dependent on their parent’s (or any other
person’s) federal return

Dependent
taxpayer
Filing Status 6

Single Dependent taxpayers, regardless of whether income is earned or unearned,
are not required to file a Maryland income tax return unless the gross income
including Maryland additions and subtractions is $13,850 or more. See Instruction
1 if you are due a refund. You do not get an exemption for yourself. Put a zero in
Exemption Box A.

Any person who filed as a head of
household on their federal return

Head of household
Filing Status 4

A qualifying surviving spouse with
dependent child who filed a federal return
with the qualifying surviving spouse status

Qualifying surviving spouse
with dependent child
Filing Status 5

All other single persons

Single
Filing Status 1

If your spouse died during the year AND you filed a joint federal return with your
deceased spouse, you may still file a joint Maryland return.

Any person who can be claimed as a
dependent on their parent’s (or any other
person’s) federal return

Dependent taxpayer
Filing Status 6

You do not get an exemption for yourself. Put a zero in Exemption Box A. You and
your spouse must file separate returns.

Any person who filed as a head of
household on their federal return

Head of household
Filing Status 4

Married couples who filed separate federal
returns

Married filing separately
Filing Status 3

Each taxpayer must show their spouse’s Social Security Number in the blank next
to the filing status box. If your spouse does not have and is not required to have a
Social Security Number or ITIN, enter “999-00-9999” in the space for your spouse’s
Social Security Number (for the purpose of this form ONLY).

Married couples who filed joint federal
returns but had different tax periods

Joint return
Filing Status 2
or Married filing separately
Filing Status 3

If you are not certain which filing status to use, figure your tax both ways to
determine which status is best for you. See Instructions 8 and 26(g) through (p).

Married couples who filed joint federal
returns but were domiciled in different
counties, cities, towns or taxing areas on
the last day of the year

Joint return
Filing Status 2
or Married filing separately
Filing Status 3

If you are filing separately, see Instruction 8. If you are filing a joint return see
SPECIAL NOTE in Instruction 19.

Married couples who filed joint federal
returns but were domiciled in different
states on the last day of the year
All other married couples who filed joint
federal returns

If you are filing separately, see Instruction 8. If you are filing a joint return, you must
attach a pro forma Form 505 and 505NR. See Administrative Releases 1 & 3.
Joint return
Filing Status 2

If your spouse does not have and is not required to have a Social Security Number or
ITIN, enter “999-00-9999” in the space for your spouse’s Social Security Number (for
the purpose of this form ONLY).

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 13, code hh for applicable exemption adjustment.
If Your
FEDERAL ADJUSTED GROSS INCOME
is

Single or Married Filing
Separately

Joint, Head of Household,
or Qualifying Surviving
Spouse

Dependent Taxpayer (eligible
to be claimed on another
taxpayer’s return)

Each Exemption is

Each Exemption is

Each Exemption is

$100,000 or less
Over
But not over
$100,000
$125,000
$125,000
$150,000
$150,000
$175,000
$175,000
$200,000
In excess of $200,000

$3,200

$3,200

$0

$1,600
$800
$0
$0
$0

$3,200
$3,200
$1,600
$800
$0

$0
$0
$0
$0
$0

Total the exemption amount on the front of Form 502 to determine the total exemption allowance to subtract on line 19 of Form 502.
4

with funds that are not attributable in whole or in part, to the
other jointly responsible individual.

Line 1b. Enter your earned income used to calculate your
federal earned income credit (EIC), Maryland earned income credit, or poverty level credit (PLC). Earned income
includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. It also
includes any amount received as a scholarship that you included
in your federal AGI.

If both spouses choose to itemize on their separate Maryland
returns, then each spouse must determine which deductions are
attributable exclusively to each spouse and prorate the remaining deductions using the Maryland Income Factor. See Instruction 26k. If it is not possible to determine deductions in this
manner, they must be allocated proportionately based on their
respective shares of the income. The total amount of itemized
deductions for both spouses cannot exceed the itemized deductions on the federal return.

Line 1c. Enter on line 1c the amount of capital gains and losses
reported as taxable income on Line 7 of the federal Form 1040.
Line 1d. Enter on line 1d the total amount of pensions, IRAs
and annuities reported as income on lines 4b and 5b of your
federal Form 1040. As required by House Bill 1148 (Chapter
648) of the 2016 Session of the General Assembly, taxpayers with an entry on line 1d must complete and attach
Form 502R. See Form 502R for additional information.

If you choose to use the standard deduction method, use STANDARD DEDUCTION WORKSHEET (16A) in Instruction 16. Each
spouse must claim their own personal exemption. Each spouse
may allocate the dependent exemptions in any manner they
choose. A dependent may not be claimed twice. The total number of dependents claimed may not exceed the overall number
of dependents.

Line 1e. Place a “Y” in the box if the amount of your investment
income is more than $11,000. You DO NOT qualify for the earned
income tax credit. Investment income generally includes, but is
not limited to, interest, dividends, capital gains, and other types
of distributions including mutual fund distributions.

Complete the remainder of the form using the instructions for
each line. Each spouse should claim their own withholding and
other credits. Joint estimated tax paid may be divided between
the spouses in any manner provided the total claimed does not
exceed the total estimated tax paid.

9	

12

PART-YEAR RESIDENTS.

	 ADDITIONS TO INCOME.

Determine which additions to income apply to you. Write
the correct amounts on lines 2-5 of Form 502. Instructions for each line:

If you began or ended legal residence in Maryland in 2023
see Instruction 26.

Line 2. TAX EXEMPT STATE OR LOCAL BOND INTEREST.
Enter the interest from non-Maryland state or local bonds or
other obligations (less related expenses). This includes interest
from mutual funds that invest in non-Maryland state or local
obligations. Interest earned on obligations of Maryland or any
Maryland subdivision is exempt from Maryland tax and should
not be entered on this line.

Military taxpayers: If you have non-Maryland military income, see Administrative Release 1.

10

	EXEMPTIONS.

Line 3. STATE RETIREMENT PICKUP. Contributions of a State
retirement or pension system pickup amount will be stated separately on your W-2 form (Box 14). The tax on this portion of
your wages is deferred for federal but not for state purposes.

Determine what exemptions you are entitled to and complete the EXEMPTIONS area on Form 502. Form 502B
must be completed and attached to Form 502 if you are
claiming one or more dependents.

Line 4. LUMP SUM DISTRIBUTION FROM A QUALIFIED
RETIREMENT PLAN. If you received such a distribution, you
will receive a Form 1099R showing the amounts distributed. You
must report part of the lump sum distribution as an addition to
income if you file federal Form 4972.

EXEMPTIONS ALLOWED
You are entitled to claim qualified exemptions on your Maryland
return. The amount of your Maryland exemption may be limited
by the amount of your federal adjusted gross income. See Exemption Amount Chart (10A).

Use the LUMP SUM DISTRIBUTION WORKSHEET (12A) to determine the amount of your addition.

You and your spouse are permitted to claim additional exemptions for being age 65 or over or for blindness. These additional
exemptions are in the amount of $1,000 each. 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 (4) and
(5) of Form 502B for each of your dependents who are age 65
or over.

LUMP SUM DISTRIBUTION WORKSHEET (12A)
1.	Ordinary income portion of distribution from
Form 1099R reported on federal Form 4972
(taxable amount less capital gain amount) . . . . . . $______________
2.	40% of capital gain portion of distribution from
Form 1099R. . . . . . . . . . . . . . . . . . . . . . . . . . . . $______________

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. The
number of exemptions for Part C is from Total Dependent
Exemptions, Line 3 of Form 502B.

3.	Add lines 1 and 2.. . . . . . . . . . . . . . . . . . . . . . . . $______________
4.	Enter minimum distribution allowance from
federal Form 4972 . . . . . . . . . . . . . . . . . . . . . . . $______________
5.	Subtract line 4 from line 3. This is your addition
to income for your lump sum distribution. Enter
on Form 502, line 4. If this amount is less than
zero, enter zero . . . . . . . . . . . . . . . . . . . . . . . . . $______________

PART-YEAR RESIDENTS AND MILITARY
You must prorate your exemptions based on the percentage of
income subject to Maryland tax. See Instruction 26 and Administrative Release 1.

Note: If you were able to deduct the death benefit exclusion on
federal Form 4972, allocate that exclusion between the ordinary and
capital gain portions of your distribution in the same ratio before
completing this schedule.

11

	INCOME.

Line 5. OTHER ADDITIONS TO INCOME. If one or more of
these apply to you, enter the total amount on line 5 and identify
each item using the code letter:

Line 1. Copy the figure for federal adjusted gross income
from line 11 of your federal form 1040/1040SR onto line
1 of Form 502.

	 CODE LETTER

Line 1a. Copy the total of your wages, salaries and tips
from line 1z of your federal Form 1040 onto line 1a of
Form 502. If you and your spouse file a joint federal return but
are filing separate Maryland returns, see Instruction 8.

a.	 Part-year residents: losses or adjustments to federal income
that were realized or paid when you were a nonresident of
Maryland.
5

penses attributable to operating a family day care home or
a child care center in Maryland without having the registration or license required by the Family Law Article.

b.	 Net additions to income from pass-through entities not
attributable to decoupling.
c.	 Net additions to income from a trust as reported by the
fiduciary.

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

d.	 S corporation taxes included on lines 13 and 14 of Form
502CR, Part A, Tax Credits for Income Taxes Paid to Other
States and Localities. (See instructions for Part A of Form
502CR.)
e.	 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 & Development
Tax Credit, Federal 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 and/or Endowments of Maryland Historically Black Colleges and Universities Tax Credit
on Forms 500CR or 502CR.

l.	

m.	 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.

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

n.	 Amount deducted on your federal income tax return for domestic production activities.

Oil percentage depletion allowance claimed under IRC Section 613.

o.	 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.

g.	 Income exempt from federal tax by federal law or treaty
that is not exempt from Maryland tax.
h.	 Net operating loss deduction to the extent of a double benefit. See Administrative Release 18 at marylandtaxes.
gov.
i.	

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.

p.	 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.

Taxable tax preference items from line 5 of Form 502TP.
The items of tax preference are defined in IRC 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 (Alternative Minimum
Tax) with your federal Form 1040.

q.	 If you sold or exchanged a property for which you claimed
a subtraction modification under Senate Bill 367 (Chapter
231, Acts of 2017) 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

Amount deducted for federal income tax purposes for ex-

PENSION EXCLUSION COMPUTATION WORKSHEET (13A)
Review carefully the age and disability requirements in the instructions before completing this worksheet. Use the
separate RETIRED FOREST/PARK/WILDLIFE RANGER PENSION EXCLUSION COMPUTATION WORKSHEET (13E) if
applicable.
You

Spouse

1. Qualifying pension and retirement annuity included in your federal adjusted gross income (Do not include Social Security or Railroad Retirement). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Maximum allowable exclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$36,200

$36,200

3. Total benefits you received from Social Security and/or Railroad Retirement (Tier I and Tier II). . . . .
4. Tentative exclusion (Subtract line 3 from line 2.) (If less than 0, enter 0.). . . . . . . . . . . . . . . . . . . .
5. Pension Exclusion (Enter the smaller of line 1 or 4 here and on line 10a, Form 502.) If you and your
spouse both qualify for the pension exclusion, combine your allowable exclusions and enter the total
amount on line 10a, Form 502 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SPECIFIC INSTRUCTIONS
NOTE: When both you and your spouse qualify for the pension exclusion, a separate column must be completed for each spouse.
Line 1. Enter your qualifying pension and retirement annuity included in your federal adjusted gross income. Do not include any amount
subtracted for military retirement income (see code letter u in Instruction 13) or public safety retirement income (see
code letter v in Instruction 13).
Line 2. The maximum allowable exclusion is $ 36,200.
Line 3. Enter your total Social Security and/or Railroad Retirement benefits. Include all Social Security and/or Railroad Retirement benefits
whether or not you included any portion of these amounts in your federal adjusted gross income. Include both Tier I and Tier II
Railroad Retirement benefits. If you are filing a joint return and both spouses received Social Security and/or Railroad Retirement
benefits but only one spouse received a pension, enter only the Social Security and/or Railroad Retirement benefits of the spouse
receiving the pension on the worksheet. If your total Social Security and/or Railroad Retirement income is greater than the Maximum
Pension Exclusion $ 36,200, the pension exclusion will be zero (0).
Line 4. Subtract line 3 from line 2 to determine your tentative exclusion.
Line 5. Your pension exclusion is the smaller of your net taxable pension (line 1) or the tentative exclusion (line 4). Enter the smaller amount
on this line.
6

as reportable under the federal Mortgage Forgiveness Debt
Relief Act of 2007 and your federal adjusted gross income
as claimed in the taxable year.

two or more dependents receive care). You may also be entitled
to credits for these taxable expenses. See instructions for Part
B and Part CC of Form 502CR.

r. 	 Members of pass-through entities that elected to make payments attributable to members’ share of the pass-through
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