Instructions For Maryland Resident Income Tax Returns Forms 502 And 503

p. MILITARY OVERSEAS

17*500

thisamountonline14ofFonn502

(4 you

04 your spou=

attributabte to each spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3.ADDlinesland2.

ENTERthisamountonline16ofForm502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1141

19a. State and local income taxes used as

“l” or subtraction modi-

fication ‘bb”.

(?o be used only by high-income taxpayers who were required to reduce their federal itemized deductions)

l.ENTERtheamountfromline28offederalScheduleA.

offederalScheduleA.

7.MULTlPLYline5byline6.Thisistheamountyoumustsubtractonline19bofForm502 . . . . . . . . ._. . . . . , . . . ..$

u. MILITARY RETIREMENT

INCOME WORKSHEET

the amount of military

1. ENTER your military retirement

1. ENTER

pay

income. If more than $2,500,

attributable to service outside the

enter $2,500 _ . . . . . . . . . . . . . . . . . . . . . .S

U.S., but, if greater than $15,000,

2. ENTER your federal

enter $15,000.. . _ . _ . . . . . . . . . . . . . . . . .$-

adjusted gross income . . . . . .$-

total military

2. ENTER

pay received during

3. SUBTRACT this

amount from the

the taxable year . . _ . . . .L

amount on line 2 . . . . . . . . .$

3. Maximum subtraction . . . .$ 15yooo

4. ENTER the diirence

the amount on line 3

4. SUBTRACT

between line 2 and 3.

from line 2. If this amount is less

lass than zero (0)

than zero (0). enter zero (0) . . . . . . . . . . . .$-

enter zero (0) . . . . . . . . . . .$-

5. SUBTRACT line 4 from line 1.

5. MULTIPLY the amount on line 4

This is your subtraction from income.

by 50% (50) . . . . . . . . . . . . . . . . . . . . . . .z

If the amount is zero (0) or less, you

tha amount on line 5

6. SUBTRACT

are not eligible for any subtraction.

from the amount on line 1. INCLUDE

INCLUDE this amount cn line 14

. . . . . . . .$-

of Form 502 . . . . . . . . . . . . . . . . . . . . . . . . .$

TWO-INCOME

MARRIED

COUPLE

SUBTRACTION

WORKSHEET

1. ENTER the portion of federal adjusted gross income from line 1 of Form 502

attributable to each spouse.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. ENTER the portion of additions to income from line 6 of Form 502

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4. ENTER the portion of subtractions from income from line 15 of Form 502

attributabte to each spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5. SUBTRACTline4fromline3.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. COMPARE the amounts on lines 5 (a) and (b) and enter the smaller amount here

butnotlessthanzero. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .._..........

7. ENTER $1,200 or the amount on line 6, whichever is less.

Itemized deductions. If you figure your tax by the ITEMIZED DEDUCTION METHOD, complete lmes wa ana

Maryland Form 502. (See Instruction 16 to see if you will use the ITEMIZED DEDUCTION METHOD.)

USE FEDERAL FORM 1040 SCHEDULE A

entered on line 19b. Also, any amounts

deductions. If you had to reduce your total

deducted

contributions

Preservation

federal itemized deductions, use the ltem-

To use the ITEMIZED DEDUCTION

and Conservation Easements for which a

ized Deduction Worksheet below to calcu-

METHOD, you must itemize your deduc-

late the amount of state and local taxes to

tions on your federal return and complete

credit is claimed on Form 502CR

must be

be entered on line 19b of Form 502.

federal Form 1040 Schedule A. Copy the

added to line 19b.

You are not required to itemize deduc-

If your unreimbursed business expenses

amount from Schedule A, line 28, Total

Itemized Deductions, on line 19a of Form

tions on your Maryland return simply

include depreciation under the Job Creation

and Worker Assistance Act of 2002 to which

502. Certain items of federal itemized

because you itemized on your federal

an adjustment is required for Maryland pur-

deductions are not eligible for State pur-

return. Figure your tax each way to deter-

mine which method is best for you.

poses, an adjustment must be reflected in

poses and must be subtracted from line

NOTE:

Certain

high-income

taxpayers

addition modiication

are required to reduce their federal itemized

a deduction for federal purposes must be

ITEMIZED

DEDUCTION

WORKSHEET

. .._............ . . . . . . . . . . . . . . . . . . . . . . . . . $

2. ENTER the total of lines 4, 13 and 19, plus any gambling and casualty or theft losses included in line 27

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..$

3. Federal itemized deductions that were limited (SUBTRACT line 2 from line 1) . . . . . . . _ . . _ . . . . . . . . . . . . .$ -

4. Federal itemized deductions subject to limitation (ENTER the total of lines 9, 10, 11, 12, 18, 26 and line 27 less

any gambling and casualty or theft losses included in line 27 of federal Schedule A . . . . . . . . . . . . . . . . . . . .$

5. DIVIDE line 3 by line 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6. ENTER the amount of state and local income taxes from line 5 of federal Schedule A. . , . . . . . . _ . . . _ . . . . . . .$

Instructions For Maryland Resident Income Tax Returns Forms 502 And 503 - 2002 Page 7

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