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

INCOME TAX CREDITS

MARYLAND

Page 1

FORM

FOR INDIVIDUALS

502CR

INSTRUCTIONS

2013

GENERAL INSTRUCTIONS

Alabama - AL

Mississippi - MS

Vermont - VT

Arizona - AZ

Missouri - MO

Virginia - VA

Purpose of Form. Form 502CR is used to claim personal income

Arkansas - AR

Montana - MT

(except wage income)

tax credits for individuals (including resident fiduciaries).

California - CA

Nebraska - NE

Washington, DC - DC

You may report the following tax credits on this form: the Credit

Colorado - CO

New Hampshire - NH

(except wage income)

for Income Taxes Paid to Other States, Credit for Child and

Connecticut - CT

New Jersey - NJ

West Virginia - WV

Dependent Care Expenses, Quality Teacher Incentive Credit,

Delaware - DE

New Mexico - NM

(except wage income)

Long-Term Care Insurance Credit, Credit for Preservation and

Georgia - GA

New York - NY

Wisconsin - WI

Conservation Easements, Credit for Aquaculture Oyster Floats,

Hawaii - HI

North Carolina - NC

Territories and

the Health Enterprise Zone Practitioner Income Tax

Idaho - ID

North Dakota - ND

Possessions of the

Credit, Sustainable Communities Tax Credit, the Neighborhood

Illinois - IL

Ohio - OH

United States

Stabilization Credit, Flow-Through Nonresident PTE Tax and

Indiana - IN

Oklahoma - OK

American Samoa - AS

IRC Section 1341 Repayment Credit. You must file Form 500CR

Iowa - IA

Oregon - OR

Guam - GU

electronically to claim a business income tax credit.

Kansas - KS

Pennsylvania - PA

Northern Mariana

Kentucky - KY

(except wage income)

Island - MP

The

Neighborhood

Stabilization

Credit,

the

Sustainable

Louisiana - LA

Rhode Island - RI

Puerto Rico - PR

Communities Tax Credit and/or certain business tax credits from

Maine - ME

South Carolina - SC

U.S. Virgin Islands - VI

Form 500CR and the IRC Section 1341 Repayment Credit are

Massachusetts - MA

Tennessee - TN

refundable. All of the other credits may not exceed the state

Michigan - MI

Texas - TX

income tax.

Minnesota - MN

Utah - UT

Excess credit for preservation and conservation easements

A Maryland resident (including a resident fiduciary) having

may be carried forward to the next tax year. Excess amounts

income from one of these states must report the income on the

of the other credits cannot be carried forward. Note: Resident

Maryland return Form 502 or 504. To claim a credit for taxes

fiduciaries may use Form 502CR to claim only a credit

paid to the other state, complete Form 502CR and attach it and

for income taxes paid to other states or a credit for

a copy of the other state’s nonresident income tax return (not

Preservation and Conservation Easements.

just your W-2 Form) to your Maryland return.

Name and Other Information. Type or print the name(s) as

GROUP II - Reciprocal for wages, salaries, tips and commission

shown on Form 502, Form 505, Form 515 or Form 504 in the

income only.

designated area. Enter the Social Security Number for each

taxpayer.

Pennsylvania - PA

Washington, DC - DC

Virginia - VA

West Virginia - WV

When and Where to File. Form 502CR must be attached to

the annual return (Form 502, 504, 505 or 515) and filed with

Maryland has a reciprocal agreement with the states included

the Comptroller of Maryland, Revenue Administration

in Group II. The agreement applies only to wages, salaries, tips

Division, 110 Carroll Street, Annapolis, Maryland 21411-

and commissions. It does not apply to business income, farm

0001.

income, rental income, gain from the sale of tangible property,

etc. If you had such income subject to tax in these states,

PART A - CREDIT FOR INCOME TAXES PAID TO OTHER

complete Form 502CR and attach it and a copy of the other

STATES

state’s nonresident income tax return (not just your W-2 Form)

If you are a Maryland resident (including a resident fiduciary)

to your Maryland return.

and you paid income tax to another state, you may be eligible

for a credit on your Maryland return. Nonresidents (filing Form

If you had wages, plus income other than wages from a state

505, 515 or 504) are not eligible for this credit.

listed in Group II, you should contact the taxing authorities in

the other state to determine the proper method for filing the

Find the state to which you paid a nonresident tax in the groups

nonresident return.

listed below. The instructions for that group will tell you if you

are eligible for credit and should complete Part A of Form 502CR.

GROUP III - No state income tax - No credit allowed.

You must file your Maryland income tax return on Form 502 and

Alaska - AK

South Dakota - SD

complete lines 1 through 22 of that form, or on Form 504 and

Florida - FL

Washington - WA

complete lines 1 through 23. Then complete Form 502CR Parts

Nevada - NV

Wyoming - WY

A and H and attach to Form 502 or 504.

You must report income from these states on your Maryland

A completed, signed copy of the income tax return filed in the

resident return. You cannot claim any credit for income earned

other state must also be attached to Form 502 or 504.

in these states because you did not pay any income tax to the

CAUTION: Do not use the income or withholding tax reported

other state.

on the wage and tax statement (W-2 form) issued by your

employer for the credit computation. Use the taxable income

PART A – IMPORTANT NOTE FOR DUAL RESIDENTS

and the income tax calculated on the return you filed with the

A person may be a resident of more than one state at the same

other state.

time for income tax purposes. If you must file a resident return

If you are claiming credit for taxes paid to more than one state,

with both Maryland and another state, use the following rules to

a separate Form 502CR must be completed for each state. Total

determine where the credit should be taken:

the amount from each Form 502CR, Part A, line 8. Using only

1. A person who is domiciled in Maryland and who is subject to

one summary section, record the total on Part H, line 1. Credit

tax as a resident of any of the states listed in Group I or II

cannot be allowed for the local portion of the tax calculated on

can claim a credit on the Maryland return (Form 502) using

the return of the other state or on the Maryland return (line 29

Part A of Form 502CR.

of Form 502).

2. A person domiciled in any state listed in Group I or II who

GROUP I - Nonreciprocal - Credit is taken on the Maryland

must file a resident return with Maryland must take the

resident return.

credit in the state of domicile.

COM/RAD-012

13-49

Instructions For Maryland Form 502cr - Income Tax Credits For Individuals - 2013

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