Instructions For Maryland Form 502cr - Income Tax Credits For Individuals

2015

MARYLAND

INCOME TAX CREDITS FOR

FORM

Page 2

INDIVIDUALS INSTRUCTIONS

502CR

Using the summary Form 502CR, record the total on Part K, line 1. Write

be entitled to a credit on your Maryland state income tax return. The

"SUMMARY" across the top of page 1 of the summary Form 502CR.

credit starts at 32.5% of the federal credit allowed, but is phased out for

taxpayers with federal adjusted gross incomes above $41,000 ($20,500

If the Maryland resident must file an individual nonresident return

for individuals who are married, but file separate income tax returns). No

reporting the partnership, S corporation, LLC or business trust income,

credit is allowed for an individual whose federal adjusted gross income

a separate Form 502CR must be completed for each state and submitted

exceeds $50,000 ($25,000 for married filing separately). Use the CREDIT

with a copy of the return filed with the other state.

FOR CHILD AND DEPENDENT CARE EXPENSES CHART to determine the decimal

For both composite returns and individual returns, no credit is available

amount to be entered on line 3 of Part B.

for taxes paid to states in Group III.

PART C - QUALITY TEACHER INCENTIVE CREDIT

Shareholders of S Corporations - Maryland resident shareholders can

claim a credit for taxes paid by an S corporation to a state which does

If you are a qualified teacher, you may be able to claim a credit against

not recognize federal S corporation treatment. A copy of the corporation

your State tax liability for tuition paid to take graduate-level courses

return filed in the other state is required to be attached to the Maryland

required to maintain certification. This credit applies to individuals who:

return. A separate Form 502CR should be completed for each state

a. Currently hold a standard professional certificate or advanced

showing the following information:

professional certificate;

b. Are employed by a county/city board of education in Maryland, a

__________% x ________________

= _______________

state or local correctional facility, or a juvenile correctional facility as

listed below in the note;

Stock ownership

Corporation taxable income

Line 2, Part A, Form 502CR

percentage

c. Teach in a public school or qualified facility and receive a satisfactory

__________% x ________________ = _______________

performance;

d. Successfully complete the courses with a grade of B or better; and

Stock ownership

Corporation tax

Line 11, Part A, Form 502CR

percentage

e. Have not been fully reimbursed by the state/county/city for these

NOTE: A preliminary calculation using Form 502 must be made before

expenses.

calculating the credit on Form 502CR. Complete lines 1 through 21 and

Only the unreimbursed portion qualifies for the credit.

line 28 on Form 502 to determine the amounts to be used for the 502CR

computation.

Each spouse that qualifies may claim this credit. Complete a separate

column in the worksheet for each spouse.

The credit amount shown on lines 13 and 14 of Part A, Form 502CR then

must be included as an addition to income on line 5 of the Form 502

NOTE: Qualified juvenile facilities are: the Alfred D. Noyes Children's

you will file. (See Instruction 12 - Additions to Income - in the Resident

Center; the Baltimore City Juvenile Justice Center; the Charles H. Hickey,

Instruction Booklet)

Jr. School; the Cheltenham Youth Facility; the J. DeWeese Carter Center;

the Lower Eastern Shore Children's Center; the Thomas J. S. Waxter

D.C. Unincorporated Business Franchise Tax - Self-employed

Children's Center; the Victor Cullen Center; the Western Maryland

individuals and partners in a partnership who are subject to D.C.

Children's Center; and the youth centers.

unincorporated business franchise tax may claim a credit on Form 502CR.

A copy of the D.C. return is required for self-employed individuals and

INSTRUCTIONS

for partners, a K-1 or other statement from the partnership showing the

Line 1

Enter the name of the Maryland public school system or State or

partner’s share of income and the partner’s share of the D.C. tax.

local correctional facility or qualified juvenile facility in which you

Installment Sales in Another State - You may be eligible for credit

are employed and teach.

for taxes paid to another state and/or locality for gain recognized on

Line 2

Enter the amount of tuition paid for graduate-level courses for

installment, sales proceeds, even if the other state and/or locality required

each qualifying teacher and the name of the institution(s) to

the total be recognized in an earlier tax year. The gain must have been

which it was paid.

deferred for federal tax purposes, but fully taxed in the year of the sale

by another state and/or locality that does not recognize the deferral. The

Line 3

Enter the amount received as a reimbursement for tuition from

credit allowed is the amount of the gain taxed in Maryland in the current

your employer.

year multiplied by the lesser of:

Line 5

The maximum amount of credit allowed is $1,500 for each

• the highest State plus local tax rate used on your Maryland tax return

qualifying individual.

Line 6

The credit is limited to the amount paid less any reimbursement

up to the maximum amount allowed for each qualifying individual.

• the tax rate imposed by the other state and/or locality on the gain.

Enter the lesser of line 4 or line 5.

PART B - CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES

Line 7

Enter the total of line 6, for Taxpayers A and B. Also enter this

amount on Part J, line 3.

If you are eligible for a Child and Dependent Care Credit on your federal

income tax return, Form 1040 or 1040A for tax year 2015, you may

CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES CHART

If your filing status is Married Filing Separately and

For all other filing statuses, if your federal

Decimal Amount

your federal adjusted gross income is:

adjusted gross income is:

At Least

But less than

At least

But less than

$0-

$20,501

.3250

$41,001

$20,501

$21,001

.2925

$41,001

$42,001

$21,001

$21,501

.2600

$42,001

$43,001

$21,501

$22,001

.2275

$43,001

$44,001

$22,001

$22,501

.1950

$44,001

$45,001

$22,501

$23,001

.1625

$45,001

$46,001

$23,001

$23,501

.1300

$46,001

$47,001

$23,501

$24,001

.0975

$47,001

$48,001

$24,001

$24,501

.0650

$48,001

$49,001

$24,501

$25,001

.0325

$49,001

$50,001

$25,001

or over

.0000

$50,001

or over

Instructions For Maryland Form 502cr - Income Tax Credits For Individuals - 2015 Page 2

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