Instructions For Maryland Resident Income Tax Returns Forms 502 And 503

q 8

ident see instruction 26(o)

works&et

lf you filed a joint federal return, but a sepa-

502orline7aofForm503. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

claim a credit of 5% of your earned income.

gible For tha poverty level credit. You are not elii

..-.......................

t h r o u g h

entities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

a.CREDITS

You must attach a copy of Form 502CR and

c.QUALlTY

float

theTcosts.

c.MARYLAND

Earned income credit, poverty level credit, credits for individuals and business tax credits. If you claim

earned income credit or poverty level credit, see Instruction 19 for your local credit calculation.

Line 25 of Form 502.

your Maryland return. If you are a part-year res-

total of up to cne-half the federal cmdii

Line 7a of Form 503. EARNED INCOME

before completing thii

Complete the STATE EARNED IN-

CREDIT If you claimed an earned income

COME CREDIT WORKSHEET to calculate

credit on your federal return, then you may

the amount to enter on line 25 of Form 502

(50%)

credit

claim one-half

of the federal

rate Maryland return, you may daim a combined

or line 7a of Form 503.

STATE EARNED INCOME CREDIT WORKSHEET

(Part-year residents see Instruction 26(o))

‘1. Marylandtax(fromline24ofForm502orline6ofForm503)

. . . . . . . . . . . . . .._................. . . 1.

2. Federal earned income credit

x 50% (50). Enter this amount here and on line 25 of Form

3. Subtractline2fromlinel.Iflessthanzero(O)enterzero(O)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.----

If line 3 is greater than zero (0), you may qualify for the Poverty Level Credit. See Instructions below.

If line 3 is zero (0), you may qualify for the Refundable Earned Income Credii See Instruction 21.

Line 26 of Form 502.

gible for this credit if you checked filing status 6

income guidelines from the worksheet, you may

Line 7b of Form 503. STATE POVERTY

(dependent taxpayer) on your Maryland income

tax return.

Complete the STATE POVERTY LEVEL

LEVEL CREDIT. If your earned

income and fed-

eral adjusted gross income are below the

your

Generally, if

Maryland state tax

CREDIT WORKSHEET to calculate the amount

poverty level income for the number of exemp

exceeds 50% of your federal earned income

to enter on line 26 of Form 502 or line 7b of

tions on your federal tax return, you may be eli-

credit and your earned income and federal

Form 503.

adjusted gross income are below the poverty

This is not a refundable credit

STATE POVERTY LEVEL CREDIT WORKSHEET

If you checked filing status 6 on your Maryland return, you are not eligible for this credit.

1. Enter the amount from line 7 of Form 502, or line 1 of Form 503. If you

checked filing status 3 (married filing separately) and you filed a joint

federal return enter your joint federal adjusted gross income plus any

Maryland ad&ions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2. Enter the total of your salary, wages, tips and other employee compen-

sation and net profit from self-employment. (Do not include a farm or

business loss.) Also include your distributive share of income from pass-

3. Find the number of exemptions in the chart that is the

same as the number of exemptions entered on your federal tax return.

Enter the income level that corresponds to the exemption number . . . . . . . . . . . . . . 3.

4. Enter the amount from line 1 or 2, whichever i s l a rger . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

Compare lines 3 and 4. If line 4 is greater than or equal to line 3,

STOP HERE. You do not qualify for this credit.

If line 3 is greater than line 4, continue to line 5.

5. Multiply line 2 by 5% (.05). Enter that amount here and on line 26

of Form 502 or line 7b of Form 503. (Part-year residents see

Instruction 26(o).) This is your State Poverty Level Credit _..............____.......... 5.

Line 27 of Form 502. PERSONAL INCOME

after July 1, 2002, you may be entitled to a

Line 28 of Form 502. BUSINESS TAX

TAX CREDITS. Enter the total of your Person-

credit of up to $500 for the cost of the float.

CREDITS. Enter the total of your business tax

al Income tax credits as listed below. Com-

e.LONG-TERM

CARE

INSURANCE

CREDIT.

credits as listed below. For credits a through

plete and submit Form 502CR with Form 502.

If you paid a premium for a long-term care

q, complete and submit Form 500CR with

FOR INCOME TAXES PAID TO

insurance policy for yourself or certain family

Form 502.

OTHER STATES. If you have income subject

members, you may be eligible for a tax credit.

a.ENTERPRISE

ZONE TAX CREDIT. Busi-

to tax in both Maryland and another state,

f. CREDIT FOR PRESERVATION AND CON-

nesses located in an enterprise zone may

you may be eligible for a tax credit. Note:

SERVATION EASEMENTS. If you donated

be eligible for tax credit based upon wages

an easement to the Maryland Environmental

paid to qualifying employees.’

also a copy of the tax return filed in the other

Trust or the Maryland Agricultural Land

b. EMPLOYMENT OPPORTUNITY TAX

state. If these are not attached, no credit will

Preservation Foundation to preserve open

CREDIT. Businesses employing persons

be allowed.

space, natural resources, agriculture, forest

receiving “Aid to Families Wiih Dependent

b.CREDlT FOR CHILD AND DEPENDENT

land,

watersheds,

significant

ecosystems,

Children” (AFDC) may be eligible for tax

CARE EXPENSES. If you were eligible for a

viewsheds, or historic properties, you may

credits based upon wages paid to and child

Child and Dependent Care Credit on your

be eligible for a credit.

care and transportation expenses paid on

federal income tax return and your income is

g.CLEAN ENERGY INCENTIVE CREDIT. If

behalf of those employees.

below certain thresholds, you are entitled to

you purchased photovoltaic or solar water

DISABILITY EMPLOYMENT

a tax credii equal to a percentage of the fed-

heating property during the tax year, you

TAX

CREDIT.

Businesses

employing

per-

eral credit.

may be entitled to a credit for a oortion of

sons with disabilities as certified by the State

TEACHER INCENTIVE CREDIT.

Department of Education or veterans with

If you are a Maryland public school teacher

NOTE:

HERITAGE

STRUCTURE

REHABILI-

disabilities as certified by the Department of

who paid tuition to take graduate level cours-

TATION TAX CREDIT. See Form 502H for

Labor, Licensing and Regulation may be eli-

es required to maintain certification, you

qualifications and instructions.

gible for tax credits based upon wages paid

may be eligible for a tax credit.

For additional information regarding any of the

to and child cara and transportation expenses

d.CREDIT FOR AQUACULTURE OYSTER

above income tax credits, see the instructions

paid on behalf of those employees.

FLOATS. If you purchased a new aquacul-

for the 502CR.

ture oyster

during the tax year on or

Instructions For Maryland Resident Income Tax Returns Forms 502 And 503 - 2002 Page 9

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