Instructions For Maryland Nonresident Income Tax Return Form 505

ywr return. Find the Maryland tax corresponding

1201

- be-eligible for a refundable earned

income

&edit.

not

!Xl%ofyourfederaleamedincomeazditandyour

eamedincomeandA?deraladj&edgrossincomeare

belowthepavertyincorneguideliifromthewc&-

sheet,youmaydaiiacreditof5%ofyoureerned

incomemult@edbythaMatyiandincwnefador.

tocalallatetlleamourlttoenteronline34ofh505.

with Form 505.

twe~.

c.QualiiTeacherlncent&CrediitfyouareaMaty-

Iand public school

graduatelevel

& i o n , y o u m a y b e e l i g i b & f o r a t a x c r e d i t .

Ovster

f. Credit for Preservation and Conservation Ease-

g. Clean Energy Incentive Credit. l f you purchased

for a portion of the costs.

Long-Term

Emplq-

worksheetonpage6andentertheresultonline44

ITEMIZED

DEDUCTION

WORKSHEET

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

1. ENTER the amount from line 28 of federal Schedule A.

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

of federal Schedule A.

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.

7. MULTIPLY line 5 by line 6. This is the amount you must subtract on line 26c of Form 606.

Exemption allowance computation. You must adjust the total exemption amount on line 28 based on the percentage of Maryland

income. On line 29 enter the Maryland income factor from the worksheet in Instruction 14 to figure your Maryland exemption allowance.

Figure your htaryiand

taxable income. Subtract line 30 from line 27 to compute your Maryland taxable income.

Figure your Maryland tax. You must use the tax table if your taxable income is less than $50,000.

Find the income range in the tax table that

to your income range. Enter the tax amount on

Computation Worksheet at the end of the tax

applies to the amount you reported on line 31 of

line 32 of your return. If your taxable income on

table.

line 31 is $50,000 or more, use the Maryland Tax

Earned income, poverty level and other credits for individuals and businesses. You may daim a credit on line 33 equal to one-

half of the earned income credit on your federal return multiplied by the Maryland income factor.You

may dalm a credit on line 34 of 5%

of your earned Income multiplied bv the Marvland income factor if your income is less than the poverty income guldelines.You

may also

Llne 33. EARNED INCOME CREDIT. If you

b. Credit for Child and Dependent Care Expenses.

Line 36. BUSINESS TAX CREDlTS.

Business tax

claimed an earned income credii on your federal

If you were eligible for a Child and Dependent

credii (as calculated on Form 500CR) are as fol-

return, then you may claii one-half (50%) of the

Care Credit on your federal income tax return

lows: Enterprise Zone Tax Credit, Employment

federal credit multiplied by the Maryland income

and your income is below certain thresholds you

Opportunity Tax Credit, Maryland Disability

factor on your Maryland return.

are entitled to a tax credii equal to a percentage

Employment Tax Credit, Job Creation Tax Credit,

If you filed a joint federal return, but a

of the federal credii

Neighborhood Partnership Program Tax Credit,

separate Maryland return, you may claim a com-

Businesses That Create New Jobs Tax Credit,

bined total of up to one-half the federal credit.

Employment of Qualii

Ex-Felons Tax

teacher who paid tuiin

to take

Complete Part I of the worksheet on page 6 to cal-

courses reouired

to maintain a&i-

Credit, Water Quality Improvement Credit,

culate the amount to enter on line 33 of Form 505.

er Provided Long-Term Care Insurance Credit,

d. Credit For Aquaculture

Floats. l f vou our-

Work-based Learning Program Credit, One Mary-

This is

a refunda& credit.

chased a new aquacult&e oyster floai duiing

land Economic Development Tax Credii, Commuter

Line 34. POVERTY LEVEL CREDIT. If your

the tax year on or after July 1,2002.

you may be

Tax Credit, Research and Development Tax Credit,

earned income and federal adjusted gross income

entitled to a credit of up to $500 for the cost of

Maryland Clean Energy Incentive Act, Electric and

are below the poverty level income for the number

the float.

Gas Utility Credits, Credii for Maryland-mined Coal

of exemptions on your federal tax return, you may

e. Long-Term Care Insurance Credii. l f y o u p a i d a

and Telecommunications Property Tax Credit.

be eligible for the poverty level credit.

premium for a long-term care insurance policy

For

additional information

regarding the

You are not eligible for this credit if you

for yourself or certain family members, you may

above income tax credits,

see the instructions

checked filing status 6 (dependent taxpayer) on

be eligible for a tax credit.

provided for Form 500CR,

Buslness Tax

your Maryland income tax return.

Credits. Form 500CR is available from any

Generally, if your Maryland state tax exceeds

ments. If you donated an easement to the Mary-

office of the Comptroller, or our website

land Environmental Tnrst or the Maryland Agri-

cultural Land Preservation Foundation to pre-

serve open space, natural resources, agriculture,

Line 44. REFUNDABLE EARNED INCOME

forest land, watersheds, significant ecosystems,

CREDIT. if one-half of your prorated federal earned

viewsheds or historic properties, you may be eli-

income credit is greater than your Maryland tax and

Complete Part II of the worksheet on page 6

gible for a credit.

you have one or more dependents that you may

claim as an exemption on your

federal income tax

This is not a refundable credit.

photovoltaic or solar water heating property dur-

return, you may also be eligible for a refundable

ing the tax year, you may be entitled to a credit

earned income credit. This credii is the amount by

Line 35. PERSONAL INCOME TAX CREDITS.

which 16% of your federal earned income credit

Enter the total of your personal income tax credii

For additional Information regarding any of the

multiplied by the Maryland income factor exceeds

as listed below. Complete and submit Form 502CR

above income tax credits, see the instructions

your Maryland tax liabilii.

Complete Part Ill of the

for Form 802CR, Personal Income Tax Credits.

a. Credits for Income Taxes Paii to Other States,

Form 502CR and instructions are available

of Form 505.

This credit is not availa& for nonresident tax-

from any office of the Comptroller or our web-

site

Instructions For Maryland Nonresident Income Tax Return Form 505 - 2002 Page 5

Related Articles

Related forms

Related Categories