Instructions For Maryland Resident Income Tax Returns Forms 502 And 503

ritv, Tier I. Tier II and/or suoolemental rail-

ro;d retirement benefits, then you must

certiied by the Maryland Department

certiication.

m.Deductible

P-

wh’rch

Gactibn

y. Any income of an individual that is related

I Expenses incurred to buy and install

19-114 of the Health General Article) or

aa. Payments from a pension system to the

bb. Net subtraction modification to Mary-

ckl. Income derived within an arts and enter-

ee. Amount as required to nullify the impact

soouses have income subiect to

MaNland

t& and- you file a joint return. To compute

For example, Fred Taxpayer moved to

The Honorable Louis L. Goldstein Volun-

member of a state, county or local

Maryland on March 1. If he started to

teer Police, Fire, Rescue and Emer-

police or fire department. The amount

receive his pension on March 1, he would

aencv Medical Services Personnel Sub-

is stated separately on your W-2 form.

prorate the pension exclusion by 10110,

to $6.000 in exoenses

incurred bv

Modification Program. $3,500 for

which would mean he would be entitled to

each taxpayer who is a qualifying volun-

parents to adopt a child with special

the full pension exclusion. However, if he

teer as certified by a Maryland fire,

needs through a public or nonprofit

began to receive his pension on February 1,

police, rescue or emergency medical

adoption agency and up to $5,000 in

Fred would prorate his pension by IO/l I.

expenses incurred by parents to adopt

services

organization.

$3,500

for

each

Please note that, in either case, the pro-

a child without special needs.

taxpayer who is a qualifying member of

ration factor may not exceed 1.

the U.S. Coast Guard Auxiliary as certi-

Purchase and installation costs of cer-

Complete the PENSION EXCLUSION

fied by the organization. Attach a copy

tain

conservation tillage

equipment as

COMPUTATION WORKSHEET on page 5.

of the certification report.

Copy the amount from line 5 of the work-

of Agriculture. Attach a copy of the

w. Purchase cost of certain poultry or live-

sheet onto line II of Form 502.

stock manure spreading equipment as cer-

Line 12. FEDERALLY TAXED SOCIAL

artist’s contribution. Attach

tified by the Maryland Department of Agri-

SECURITY AND RAILROAD RETIRE-

a copy of Maryland Form 502AC.

culture. Attach a copy of the certification.

MENT BENEFITS. If you included in your

Payment received under a fire, rescue,

x. Up to $2,500 per taxpayer per beneficiary

federal adjusted gross income social secu-

or ambulance personnel length of ser-

contributed for the purchase of each pre

vice award program that is funded by

paid t&ion contract made under the Mary-

any county or municipal corporation of

land Prepaid College Trust or contribution

include the total amount of such benefits on

the State.

under

the

Maryland

Collage

Investment

line 12. Social security and railroad retire-

The value of farm products you donated

Plan. Administrative Release #I32 is avail-

ment benefits are exempt from state tax.

to a gleaning cooperative as certified by

able frcin any office of the Comptroller.

Line 13. NONRESIDENT INCOME. If

the Maryland Department of Agricul-

you began or ended your residence in

ture. Attach a copy of the certification.

to tangible or intangible property that

Maryland during the year, you may subtract

was seized, misappropriated or lost as a

Up to $15,000 of military pay that you

the portion of your income received when

result of the actions or policies of Nazi

received while in the active service of

you were not a resident of Maryland. See

Germany towards a Holocaust victim. For

any branch of the armed forces and

Instruction 26 for part-year residents and

additional

information

contact

the

Rev-

is attributable to service outside

Instruction 29 for military personnel.

the boundaries of the U.S. or its posses-

enue

Administration

Division.

If your state of residence or your period

sions. To compute the subtraction, follow

of Maryland residence was not the same

handrails in an existing elevator in a

the directions on the MILITARY OVER-

as that of your spouse and you filed a joint

SEAS INCOME.WORKSHEET.

If your

healthcare facilitv

(as defined in Section

return, follow Instruction 26 (c) through (p).

total military pay exceeds $30,000, you

Line 14. OTHER SUBTRACTIONS

do not qualify for the subtraction.

other building in which at least 50% of

FROM INCOME. If one or more of these ap-

Unreimbursed vehide travel expenses for:

the space is used for medical purposes.

ply to you, enter the total amount on line 14

1. a volunteer fire company:

and identify each item using the code letter.

2. service as a volunteer for a chari-

surviving spouse or other beneficiary of

table organization whose principal

a law enforcement officer

or firefighter

CODE LETTER

purpose is to provide medical, health

whose death arises out of or in the

Pension and disability payments to

or nutritional care; AND

course of their employment

firemen and policemen for job-related

3. assistance (other than providing trans-

injuries or disabilities (but not more than

portation to and from the school) for

land taxable income when using the

the amount of such payments included

handicapped students at a Maryland

federal bonus depreciation allowance

in your total income).

community

college.

under, the Job Creation and Worker

Net allowable subtractions from income

Attach Maryland Form 502V to claim

Assistance Act (JCWAA) of 2002

comoared

Maryland

taxable

income

from

pass-through

entities.

this subtraction from income.

Net

subtractions

from

income

reported

Amount of pickup contribution shown on

without regard to JCWAA provisions.

Form 1099R from the state retirement or

Comolete and attach Form 500DM.

by a fiduciary

Distributions of accumulated income by

pension systems included in federal

See Administrative Release 38.

a fiduciary, if income tax has been paid

adjusted gross income. The subtraction is

cc. Net subtraction modification to Mary-

limited to the amount of pickup contribu-

land taxable income when the federal

by the fiduciary to the State (but not

special 5-year carryback period was

more than the amount of such income

tion stated on the 1099R or the taxable

pension, whichever is less. Excess con-

used for a net operating loss under the

included in your total income).

Job Creation and Worker Assistance

Profit (without regard to losses) from the

tribution may be carried forward to the

Act (JCWAA) of 2002 compared to

sale or exchange of bonds issued by the

next year.

Maryland taxable income without

State or local governments of.Maryland.

The amount of interest

and

dividend

regard to JCWAA provisions. Complete

Benefits received from a Keogh plan on

income of a dependent child which the

which State income tax was paid prior to

parent has elected to include in the par-

and attach Form 5OODM. See Adminis-

1967. Attach statement.

ents federal adjusted gross income under

trative Release 38.

Amount of wages and salaries which

Internal Revenue Code Section 1 (g)(7).

Payments received from the State of

tainment district by a qualifying residing

were not allowed as a business

Maryland under Title 12 Subtitle 2 of the

artist from the publication, production, or

expense because you took the federal

Real Property Article (relocation and

sale of an artistic rnrork that the artist

Targeted Jobs Credit (Work Oppor-

wrote, composed or executed. Complete

tunity Tax Credit).

assistance

payments).

Up to $2,500 of military retirement

and attach a cow of Form 502AE.

Expenses up to $5,000 incurred by a

blind person for a reader, or up to

income received by a qualifying individ-

of federal tax changes as determined

$1,000 incurred by an employer for a

ual during the taxable year. To qualify you

by the Comptroller. Call l-800-MDTAXES

reader for a blind employee.

must be at least 55 years old on the last

for more information.

Expenses

incurred

for

reforestation

day of the taxable year and you must

Line 16. TWO-INCOME SUBTRAC-

have been an enlisted member of the

timber

stand

improvement

commer-

TION. You may subtract up to $1,200 if both

military at the time of retirement. To com-

cial forest land.’ Qualifications and in-

pute the subtraction, follow the direc-

structions are on Form DNR-393, avail-

tions on the MILITARY RETIREMENT

able from the Department of Natural

the subtraction comolete

the TWO-

INCOME WORKSHEET. If your federal

Resources. teleDhone

410-260-8531.

INCOME MARRIED CdUPLE

SUBTRAC-

The amount added to taxable income

adjusted gross income exceeds $22,500,

you do not qualify for the subtraction.

TION WORKSHEET on the next page.

for the use of an official vehicle by a

Instructions For Maryland Resident Income Tax Returns Forms 502 And 503 - 2002 Page 6

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