ENTITY INCOME TAX
for failure to pay the required amount of tax and notify the
pass-through entity of any balance due.
Pass-through entities (PTEs) may use Form 510C to file a composite
income tax return on behalf of eligible nonresident individual members.
Total Balance Due. Add the amounts on lines 13 and 15 and
Nonresident members other than individuals may not participate in
enter the result, or, if the amount on line 15 exceeds line 14,
the composite return. The Maryland tax of each nonresident individual
enter the difference. The total amount due must be paid with
member is calculated using the rate of 5.75% plus the 1.75%.
the filing of Form 510C.
Note: A single member entity cannot file a composite return.
Schedule A Instructions. Complete the following for each eligible
nonresident individual member who has elected to be included on this
Who may use this form. Nonresident individual members of a PTE doing
Member’s full name and Social Security Number.
business in the State who meet the composite return requirements contained
in Administrative Release 6 and elect to be included in a composite return
Member’s number of exemption allowance.
may not be required to file Maryland nonresident returns individually.
Member’s exemption amount. See instruction for Form 510C,
Instead, the PTE doing business in the State may file a composite return on
behalf of such nonresident individual members if:
Column D Member’s standard deduction. See instruction for Form 510C,
1. Form 510C accurately reflects the Maryland taxable income and tax
liability of each individual member shown on the return;
Member’s share of decoupling modification flow-through from
2. Form 510C Schedule A is attached containing all required information
the PTE. See instruction for Form 510C, line 7.
for each individual member; and,
Member's pro rata share of income allocable to Maryland. This
3. The PTE pays the tax, interest and penalty due by each individual
is generally the member's portion of what is reported on line
member shown on the return.
4 of Form 510. If amount is less than 0, enter 0.
Any overpaid amount will be refunded to the PTE. For more
filing a composite return is not permitted to offset one
information, Administrative Release 6 may be obtained from our Web site
member's income allocable to Maryland by a loss from
Enter the number of eligible nonresident individual members
Column G Member’s pro rata share of the nonresident withholding tax
who have elected to be included on this composite return.
paid. This is the member’s portion of what is reported on line
Fiduciaries are not eligible and cannot be included.
16d and line 17 of Form 510.
Enter the total exemption amount reported on Column C,
Direct Deposit of Refund. To comply with banking rules, we ask you to
Form 510C Schedule A. The exemption amount allowed for
indicate on your return if the state refund is going to an account outside
each nonresident individual member must be determined
the United States. If this is the case, do not enter your routing and account
separately based on the individual member’s filing status.
numbers, as the direct deposit option is not available to you. We will send
you a paper check. Complete lines 18a, b and c of Form 510C if you want
Generally, a nonresident is allowed the same number of
us to deposit your refund directly into your account at a bank or other
exemptions that the nonresident is permitted on the federal
financial institution (such as a mutual fund, brokerage firm or credit union)
return; however, the exemption amount is different, and
in the United States.
is further prorated by the nonresident’s Maryland income
factor. See Instruction 10 of Form 505, Maryland Nonresident
Signature Verification. An authorized general partner, officer or member
Income Tax Return to determine the exemption amount
of the PTE must sign and date Form 510C and enter his or her title. If a
before multiplying it by the Maryland income factor, which is
preparer is used, the preparer also must sign the return and enter the
the nonresident’s Maryland adjusted gross income (generally
firm’s name, address and Preparer’s Tax Identification Number (PTIN).
from Form 510C, Schedule A, Column F) divided by the
Penalties may be imposed for tax preparers who fail to sign the tax return
nonresident’s federal adjusted gross income (FAGI). If it is
and provide their Preparer’s Tax Identification Number.
impracticable to determine all of the separate Maryland income
Attachments and Mailing Instruction. Mail the completed return
factors, then the factor must be determined by using line 6 of
and all required attachments to Comptroller of Maryland, Revenue
Form 510 as the numerator (excluding the portion applicable
Administration Division, 110 Carroll Street, Annapolis, MD 21411-
to nonresident fiduciary members) and line 2 of Form 510 as
0001. Must attach with Form 510C: (1) Form 510C Schedule A, (2) the
the denominator (See Administrative Release 6).
PTE’s Form 510 Schedule B, Part I for individual members; and (3) the
Enter the total standard deduction amount reported on
members’ Maryland Schedule K-1 (510) issued by the PTE.
Column D, Form 510C, Schedule A. The standard deduction
Extension of Time to File. Use Form 502E to file an extension and make
amount allowed for each nonresident individual member must
payment. See Administrative Release 4.
be determined separately based on the individual member's
Amended Returns. If filing an amended return, check the Amended
Maryland adjusted gross income, and then prorated by the
Return box on page 1 of Form 510C.
nonresident’s Maryland income factor.
See Instruction 15
of Form 505, Maryland Nonresident Income Tax Return
Privacy Act Information. The Tax-General Article of the Annotated Code
for determining the standard deduction amount.
of Maryland authorizes the Revenue Administration Division to request
instruction for line 4 for the nonresident individual member’s
information on tax returns to administer the income tax laws of Maryland,
Maryland income factor.
including determination and collection of correct taxes. Code Section 10-804
provides that you must include your Social Security Number on the return
Enter the total PTE flow-through decoupling modification
you file. This is so we know who you are and can process your return. If
amount reported on Column E, Form 510C. No flow-
you fail to provide all or part of the requested information, then applicable
through addition or subtraction modifications, other than the
exemptions, credits, deductions or adjustments may be disallowed and
modification required as a result of Maryland’s decoupling
you may owe more tax. In addition, the law provides penalties for failing
from the additional depreciation allowance and special 5-year
to supply information required by law or regulations.
You may look at
net operating loss carryback provisions may be claimed on a
any records held by the Revenue Administration Division which contain
composite return. See Administrative Release 38.
personal information about you. You may inspect such records, and you
If there is a balance due on line 13, interest may be due as
have certain rights to amend or correct them.
As authorized by law,
result of late filing of Form 510C and payment of tax. Interest
information furnished to the Revenue Administration Division may be given
is due at the rate of 13% annually or 1.08% per month for any
to the United States Internal Revenue Service, a proper official of any state
month or part of a month that a tax is paid after the original
that exchanges tax information with Maryland and to an officer of this
due date of the return through 12/31/16. The annual interest
State having a right to the information in that officer’s official capacity.
rate will change after 12/31/16. For additional information
The information may be obtained in accordance with a proper legislative
or judicial order.
Administration Division will calculate the interest and penalty