Instructions For Resident Income Tax Return (Maryland Form 502) (Page 14 of 28) in pdf

credit for your withholding if you do not attach Forms

ratio of each spouse’s income to the total income. Also note the

1099, W-2 or W-2G, substantiating Maryland withholding.

words “separate jurisdictions” on line 28 of Form 502. If the local

tax rates are different, calculate a ratio of each spouse’s income

IMPORTANT: Your wage and tax statements contain many

to total income. Then apply this ratio to the taxable net income

numbers. Be sure you add only the amounts identified as

and calculate the local tax for each spouse separately using the

Maryland and local tax withheld.

appropriate local tax rates. Enter the combined local tax on line

Line 41. ESTIMATED TAX PAYMENTS. Enter on line 41 the

28 of Form 502 and write the words “separate jurisdictions” on

total of:

that line. Attach a schedule showing your calculations.

a. Maryland estimated tax payments;

b. Amount of overpayment applied from 2015 return;

LOCAL POVERTY LEVEL CREDIT WORKSHEET (19C)

c. Payment made with a request for an automatic extension of

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

time to file your 2016 return. (See the instructions on Form

502E); AND

Refer to the STATE POVERTY LEVEL CREDIT WORKSHEET (18B) in

Instruction 18. If the amount on line 3 is greater than the amount

d. Reported income tax withheld on your behalf as an estimated

on line 4, you are eligible to claim the local poverty level credit.

payment, if you participated in a nonresident real estate

Complete this worksheet to calculate the amount of your credit.

transaction as an individual. Enter code number 506 on one

A. ENTER the amount from line 2 of the

of the code number lines to the right of the telephone number

STATE POVERTY LEVEL CREDIT

area. The tax will be identified as Maryland tax withheld on

WORKSHEET (18B) . . . . . . . . . . . . . . . . . . A. ____________

Form MW506NRS. Please attach a copy of your federal return

and all relevant schedules that report the sale of the property.

B. ENTER your local tax rate from line 2 of

NOTE: Estimated tax payments are required if you expect to

the LOCAL TAX WORKSHEET (19A) . . . . . . . B.

receive any income (like pensions, business income, capital

C. MULTIPLY line A by line B. Enter the

gains, lottery, etc.) from which no tax or not enough Maryland

amount here and on line 30 of Form 502 . . .C. ____________

tax will be withheld. Read the instructions for Form 502D,

Maryland Personal Declaration of Estimated Income Tax.

Line 42 of Form 502.

TOTAL MARYLAND TAX, LOCAL TAX AND

CONTRIBUTIONS.

REFUNDABLE EARNED INCOME CREDIT.

If one-half of your federal earned income credit is greater than

Add your Maryland tax from line 27 of Form 502 and your

your Maryland tax, you may also be eligible for a refundable

local tax from line 33 of Form 502. Enter the result on

earned income credit. This credit is the amount by which 26%

line 34 of Form 502. Add to your tax any contribution

of your federal earned income credit exceeds your Maryland tax

amounts and enter the total on line 39 of Form 502.

liability. Complete the REFUNDABLE EARNED INCOME CREDIT

CHESAPEAKE BAY AND ENDANGERED SPECIES FUND

WORKSHEET (21A) and enter the result on this line.

You may contribute any amount you wish to this fund. The

amount contributed will reduce your refund or increase your

REFUNDABLE EARNED INCOME CREDIT WORKSHEET (21A)

balance due.

TO CLAIM CREDIT YOU MUST:

DEVELOPMENTAL DISABILITIES SERVICES AND

● have an entry on line 22 and line 29 of Form 502, and

SUPPORT FUND

● have entered zero on line 3 of the STATE EARNED INCOME

You may contribute any amount you wish to this fund. The

CREDIT WORKSHEET (18A) in Instruction 18.

amount contributed will reduce your refund or increase your

1. ENTER your federal earned income

balance due.

credit

x 26% (.26) (Part-year

residents see Instruction 26(o)) . . . . . . . . . 1. ____________

MARYLAND CANCER FUND

2. ENTER your Maryland tax from line 21 of

You may contribute any amount you wish to this fund. The

Form 502 . . . . . . . . . . . . . . . . . . . . . . . . . 2. ____________

amount contributed will reduce your refund or increase your

balance due.

3. SUBTRACT line 2 from line 1. If less than

zero (0), enter zero (0). This is your

FAIR CAMPAIGN FINANCING FUND

refundable earned income credit . . . . . . . . . 3. ____________

You may contribute any amount you wish to this fund. The

If line 3 is greater than zero (0), enter the amount on line 42 of

amount contributed will reduce your refund or increase your

Form 502.

balance due.

IMPORTANT: If there are not sufficient credits or other

Line 43. REFUNDABLE INCOME TAX CREDITS. Enter the

payments to satisfy both your tax and the contribution you

total of your income tax credits as listed below:

have designated, the contribution amount will be reduced. If

1. NEIGHBORHOOD STABILIZATION TAX CREDIT. If you

you have entered amounts for contributions to multiple funds,

own and live in a home in Baltimore County you may qualify

any reduction will be applied proportionately.

for this credit. See instructions for Form 502CR.

2. HERITAGE STRUCTURE REHABILITATION TAX CREDIT.

TAXES PAID AND REFUNDABLE CREDITS.

A credit is allowed for a certain percentage of qualified reha-

bilitation expenditures, as certified by the Maryland Historical

Write your taxes paid and credits on lines 40-43 of Form

Trust. Attach a copy of Form 502S and the certification.

502.

3. REFUNDABLE BUSINESS INCOME TAX CREDITS. One

Maryland Economic Development Tax Credit, Biotechnology

Instructions for each line:

Investment Incentive Tax Credit, Clean Energy Incentive Tax

Line 40 of Form 502.

Credit, Cybersecurity Investment Incentive Tax Credit, Health

MARYLAND TAX WITHHELD. Write the total Maryland and

Enterprise Zone Hiring Tax Credit, Film Production Activity Tax

local tax withheld as shown on the wage and tax statements

Credit, Small Business Research and Development Tax Credit,

(Forms W-2, W-2G or 1099) you have received. Add the amounts

and Aerospace, Electronics, or Defense Contract Tax Credit.

identified as Maryland and local tax withheld on each form and

See Form 500CR instructions at

write the total on this line. Attach Forms W-2, W-2G and 1099

4. IRC SECTION 1341 REPAYMENT. If you repaid an amount

to your return if Maryland tax is withheld. You will not get

this year reported as income on a prior year federal tax return

Instructions For Resident Income Tax Return (Maryland Form 502) Page 14

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