Instructions For Maryland Form 502cr - Income Tax Credits For Individuals

INCOME TAX CREDITS

MARYLAND

Page 3

FORM

FOR INDIVIDUALS

502CR

INSTRUCTIONS

2014

a. Currently hold a standard professional certificate or

b . The credit for the insured is being claimed in this year by

advanced professional certificate;

another taxpayer;

b . Are employed by a county/city board of education in

c . The credit is being or has been claimed by anyone in any

Maryland, a state or local correctional facility, or a juvenile

other tax year; or

correctional facility as listed below in the note;

d . The insured is a nonresident of Maryland .

c. Teach in a public school or qualified facility and receive a

satisfactory performance;

The credit is equal to the LTC premiums paid with a maximum

per insured of:

d . Successfully complete the courses with a grade of B or

better; and

Amount

Age of Insured as of 12/31/14

e . Have not been fully reimbursed by the state/county/city for

$370

40 or less

these expenses .

$500

over 40 years

Only the unreimbursed portion qualifies for the credit.

SPECIFIC INSTRUCTIONS

Each spouse that qualifies may claim this credit. Complete a

• Answer Questions 1 through 4 . If you answered “yes” for any

separate column in the worksheet for each spouse .

of the questions, no credit is allowed for that individual .

NOTE: Qualified juvenile facilities are: the Alfred D. Noyes

• Complete Columns A through D of the worksheet for each

Children's Center; the Baltimore City Juvenile Justice Center; the

qualifying insured individual who qualifies for the credit. If

Charles H . Hickey, Jr . School; the Cheltenham Youth Facility; the

more space is required, attach a separate statement .

J . DeWeese Carter Center; the Lower Eastern Shore Children's

Center; the Thomas J . S . Waxter Children's Center; the Victor

• Enter in Column E the amount of premiums paid for each

Cullen Center; the Western Maryland Children's Center; and the

qualifying insured individual up to the maximum for that age

youth centers .

group .

• Add the amounts in Column E and enter the total on line 5 .

INSTRUCTIONS

Also enter this amount on Part H, line 5 .

Line 1 Enter the name of the Maryland public school system or

State or local correctional facility or qualified juvenile

PART F - CREDIT FOR PRESERVATION AND

facility in which you are employed and teach .

CONSERVATION EASEMENTS

Line 2 Enter the amount of tuition paid for graduate-level

If you donated an easement to the Maryland Environmental

courses for each qualifying teacher and the name of the

Trust or the Maryland Agricultural Land Preservation Foundation

institution(s) to which it was paid .

to preserve open space, natural resources, agriculture, forest

land, watersheds, significant ecosystems, viewsheds or historic

Line 3 Enter the amount received as a reimbursement for

properties, you may be eligible for a credit if:

tuition from your employer .

1 . the easement is perpetual;

Line 5 The maximum amount of credit allowed is $1,500 for

2 . the easement is accepted and approved by the Board of

each qualifying individual .

Public Works and

Line 6 The credit is limited to the amount paid less any

3 . the fair market value of the property before and after the

reimbursement up to the maximum amount allowed for

conveyance of the easement is substantiated by a certified

each qualifying individual . Enter the lesser of line 4 or

real estate appraiser .

line 5 .

The credit is equal to the difference in the fair market values of

Line 7 Enter the total of line 6, for Taxpayers A and B . Also

the property reduced by payments received for the easement .

enter this amount on Part H, line 3 .

If the property is owned jointly by more than one individual,

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

such as a married couple, each individual owner is entitled

to the credit based on their percentage of ownership .

A credit is allowed for 100% of the amounts paid to purchase

Individual members of a pass-through entity are not eligible for

new aquaculture oyster floats that are designed to grow oysters

this credit . The credit amount is limited to the lesser of the

at or under an individual homeowner’s pier . The devices must

individual’s state tax liability for that year or the maximum

be buoyant and assist in the growth of oysters for the width of

allowable credit of $5,000, per owner, who qualifies to claim

the pier . In the case of a joint return, each spouse is entitled to

the credit . Complete a separate column in the worksheet for

claim the credit, provided each spouse purchases or contributes

each spouse . In the case of a joint return, each spouse must

to the purchase of a float. The credit amount is limited to the

calculate their own state tax liability for limitation purposes .

lesser of the individual’s state tax liability for that year or the

Use the rules for filing separate returns in Instruction 8 in the

maximum allowable credit of $500 . In the case of a joint return,

Resident booklet to calculate each spouse’s Maryland tax . In the

each spouse must calculate his/her own state tax liability for

case of a fiduciary return, the fiduciary will complete the column

limitation purposes .

for Taxpayer B only .

PART E - LONG-TERM CARE INSURANCE CREDIT

If the individual’s allowable credit amount exceeds the maximum

of $5,000, the excess may be carried forward for up to 15 years

A one-time credit may be claimed against the state income

or until fully used . Complete lines 1-7 of Part F . If you itemize

tax for the payment of qualified long-term care (LTC) insurance

deductions, see Instruction 14 in the Resident booklet .

premiums as defined by the IRS (Publication 502) for a policy

to insure yourself, or your spouse, parent, stepparent, child or

For line 1, enter the amount by which the fair market value of

the property before the conveyance of the easement exceeds

stepchild, who is a resident of Maryland .

the fair market value after the conveyance as substantiated by

A credit may not be claimed if:

a certified real estate appraiser, plus any carryover from the

a . The insured was covered by LTC insurance prior to July 1,

prior year .

2000;

COM/RAD-012

Instructions For Maryland Form 502cr - Income Tax Credits For Individuals - 2014 Page 3

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