Instructions For Form 502cr - Personal Income Tax Credits - 2003

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INSTRUCTIONS FOR
PERSONAL INCOME TAX CREDITS
200 0 3 3
FORM 502CR
GENERAL INSTRUCTIONS
Idaho
New Mexico
Washington, D.C.
Illinois
New York
(except wage income)
Purpose of Form. Form 502CR is used to claim personal income
Indiana
North Carolina
West Virginia
tax credits for individuals.
Iowa
North Dakota
(except wage income)
You may report the following tax credits on this form: the Credit for
Kansas
Ohio
Wisconsin
Income Taxes Paid to Other States, Credit for Child and Depen-
Kentucky
Oklahoma
Territories and
dent Care Expenses, Quality Teacher Incentive Credit, Clean
Louisiana
Oregon
Possessions of the
Energy Incentive Credit, Long-Term Care Insurance Credit,
Maine
United States
Credit for Preservation and Conservation Easements, Credit for
Group I - A Maryland resident having income from one of these
Aquaculture Oyster Floats, the Heritage Structure Rehabilitation
states must report the income on the Maryland resident return Form
Tax Credit, the Neighborhood Stablization Credit and Claim of
502. To claim a credit for taxes paid to the other state, complete
Right Credit.
Form 502CR and attach it and a copy of the other state’s nonresi-
The Neighborhood Stabilization Credit, a portion of the Heritage
dent income tax return (not just your W-2 Form) to your Maryland
Structure Rehabilitation Tax Credit, and the Claim of Right Credit are
return.
refundable. The balance of the Heritage Structure Rehabilitation Tax
GROUP II - Reciprocal for wages, salaries, tips and commission
Credit and all of the other credits may not exceed the state income
income only.
tax.
Pennsylvania
Washington, D.C.
Excess credit for preservation and conservation easements and for
Virginia
West Virginia
non-refundable heritage structure rehabilitation expenses may be
carried forward to the next tax year. Excess amounts of the other
Group II - Maryland has a reciprocal agreement with the states
credits cannot be carried forward.
included in Group II. The agreement applies only to wages, salaries,
tips and commissions. It does not apply to business income, farm
Name and Other Information. Type or print the name(s) as shown
income, rental income, gain from the sale of tangible property, etc. If
on Form 502, Form 505 or Form 515 in the designated area. Enter
you had such income subject to tax in these states, complete Form
the social security number for each taxpayer.
502CR and attach it and a copy of the other state’s nonresident
When and Where to File. Form 502CR must be attached to the
income tax return (not just your W-2 Form) to your Maryland return.
annual return (Form 502, 505 or 515) and filed with the Comptroller
of Maryland, Revenue Administration Division, Annapolis, Maryland
If you had wages, plus income other than wages from a state listed
21411-0001.
in Group II, you should contact the taxing authorities in the other
PART A -
CREDIT FOR INCOME TAXES PAID TO OTHER
state to determine the proper method for filing the nonresident
STATES
return.
If you are a Maryland resident and you paid income tax to another
GROUP III - No state income tax - No credit allowed.
state, you may be eligible for a credit on your Maryland return. Non-
Alaska
Texas
residents (filing Form 505 or Form 515) are not eligible for this credit.
Florida
Washington
Find the state to which you paid a nonresident tax in the groups list-
Nevada
Wyoming
ed below. The instructions for that group will tell you if you are eligi-
South Dakota
ble for credit and should complete Part A of Form 502CR. You must
Group III - You must report income from these states on your Mary-
file your Maryland income tax return on Form 502 and complete
land resident return. You cannot claim any credit for income earned
lines 1 through 24 of that form. Then complete Form 502CR Parts A
in these states because you did not pay any income tax to the other
and H and attach to Form 502.
state.
A completed, signed copy of the income tax return filed in the other
state must also be attached to Form 502.
IMPORTANT NOTE FOR DUAL RESIDENTS
CAUTION: Do not use the income or withholding tax reported on the
A person may be a resident of more than one state at the same time
wage and tax statement (W-2 form) issued by your employer for the
for income tax purposes. If you must file a resident return with both
credit computation. Use the taxable income and the income tax cal-
Maryland and another state, use the following rules to determine
culated on the return you filed with the other state.
where the credit should be taken:
If you are claiming credit for taxes paid to more than one state, a
1. A person who is domiciled in Maryland and who is subject to tax
separate Form 502CR must be completed for each state. Total the
as a resident of any of the states listed in Group I or II can claim
amount from each Form 502CR, Part A, line 8. Using only one
a credit on the Maryland return (Form 502) using Part A of Form
summary section, record the total on Part H, line 1. Credit cannot be
502CR.
allowed for the local portion of the tax calculated on the return of the
2. A person domiciled in any state listed in Group I or II who must
other state or on the Maryland return (line 31 of Form 502).
file a resident return with Maryland must take the credit in the
GROUP I - Nonreciprocal - Credit is taken on the Maryland resident
state of domicile.
return.
SPECIAL INSTRUCTIONS
Alabama
Massachusetts
Pennsylvania
Members of Pass-through Entities - When a partnership, S cor-
Arizona
Michigan
(except wage income)
poration, limited liability company (LLC) or business trust files a
Arkansas
Minnesota
Rhode Island
composite return on behalf of its partners, shareholders or members
California
Mississippi
South Carolina
with states in Groups I and II, Maryland resident partners, share-
Colorado
Missouri
Tennessee
holders or members may claim a credit for their share of the tax
Connecticut
Montana
Utah
paid.
Delaware
Nebraska
Vermont
Georgia
New Hampshire
Virginia
Hawaii
New Jersey
(except wage income)

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