Form 504up - Underpayment Of Estimated Maryland Income Tax By Fiduciaries - 2011 Page 3
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3Underpayment of Estimated Maryland
Instructions for
Maryland Form 504UP
2011
Income Tax By Fiduciaries
GENERAL INSTRUCTIONS
Line 11
Enter in each column the sum of any estimated payments you have
Section 10-815 of the Tax-General Article of the Annotated Code
made and any Maryland tax withheld for the period covered by that col-
of Maryland requires every individual, including a fiduciary, who
umn. NOTE: Just as in line 10, each successive entry will include the
receives taxable income which is not subject to Maryland withholding
amount from the prior columns. For example, if you paid $500 in esti-
or from which not enough Maryland tax is withheld to file a declaration
mated payments each quarter, the first column will contain $500, the
of estimated tax if the income can be expected to develop a tax of more
second $1,000, the third $1,500 and the fourth $2,000.
than $500 in excess of the Maryland withholding. Furthermore,
Sections 13-602 and 13-702 stipulate that any individual required to
determine the amount of interest due for each
Lines 13 through 15
file, who either (1) fails to file on the date or dates prescribed; (2) fails
underpaid quarter.
to pay the installment or installments when due or (3) estimates a tax
less than 90% of the developed tax shown on the return for the current
Line 13
tax year and less than 110% of the tax that was developed for the prior
The factors represent the interest rate for the portion of the year
year, shall be subject to interest and penalty.
between the due date of each quarter and the due date of the next quar-
ter. The rate is 1/12 of 13% for each month or part of a month from the
WHO MUST FILE
due date. If your estimated tax payment was not timely, but was paid
If you believe that you are liable for interest for one of the reasons
earlier than the due date of the next quarter, adjust the factor as follows:
outlined above, then please complete and submit this form with your
count the number of months from the due date that the payment was
tax return.
late; treat a partial month as one month. Divide that number by twelve
If you meet one of the following exceptions, then you are not
and multiply it by the 13% annual rate and apply this adjusted factor to
required to file this form:
the underpaid amount on line 12.
(1) the tax year ends less than two years after the decedent’s date
of death;
Line 14
(2) the tax liability on gross income after deducting Maryland
Using the factors on line 13 or the adjusted factor described above,
withholding is $500 or less or
determine the amount of interest due for each quarter and enter the
(3) each current year payment, made quarterly as required, is equal
amounts in the appropriate columns.
to or more than 1/4 of 110% of last year’s tax.
If you want us to figure the interest for you, complete your return as
Line 15
usual. Do not file Form 504UP. You will be notified of any interest due.
Add all interest amounts in columns 1 through 4 on line 14. Enter
the total interest on line 40 of your Form 504. Attach this form to your
IMPORTANT: If you complete Form 504UP and, because of the
Form 504.
distribution of income, have no interest due, attach the form to your
fiduciary return and write code number 301 in one of the boxes marked
ANNUALIZED INCOME INSTALLMENT METHOD
Code Number at the bottom of Form 504.
If your income varied during the year, you may be able to lower or
If you use the annualization method to calculate interest for under-
eliminate the amount of one or more required installments by using the
payment of estimated tax, attach Form 504UP to your fiduciary return
annualized income installment method. If you use this method for any
and write code number 301 in one of the boxes marked Code Number
payment due date, you must use it for all payment due dates. This meth-
at the bottom of Form 504. In order for the Revenue Administration
od automatically selects the smaller of the annualized income install-
ment or the regular installment.
Division to recognize your use of this calculation method, you must
enter the code number and attach the form, even if there is no
You must complete lines 16-32 of one column before starting the
interest due.
next column.
SPECIFIC INSTRUCTIONS
Line 16
Lines 1 through 9 are used to determine the minimum amount required
Enter in each column the income received for the period of the
to be paid by estimated or withholding tax to avoid interest.
year covered by the column. NOTE: Each successive column will
include the amount from the prior columns. See the example in the
Lines 1 through 3
instructions for line 11.
Enter the amounts specified from your 2011 Form 504.
Line 19
Line 4
Personal representatives of a decedent’s estate should enter $600,
Multiply the amount on line 5 of the Form 502TP by the highest
all other fiduciaries enter $200.
state rate used on your tax return. Add to this result the amount on line
5 of Form 502TP multiplied by your local (or special nonresident) tax
Line 21
rate.
Compute the state and local tax on the amount on line 20 using the
tax rate schedules provided in the instructions for Form 504. Enter the
Line 8
total on line 21.
If your 2010 tax was corrected or amended, be sure to include any
additional tax when calculating your total tax for the year.
Line 22
Enter in the appropriate column the amount of any credits from
will determine which periods are underpaid
Lines 10 through 12
lines 32 through 34 of the Form 504 and tax developed on tax prefer-
and the amount of underpayment.
ence items. (See instructions for line 4).
Line 10
Line 32
If you are utilizing the regular method of computing the underpay-
Enter the smaller of line 27 or line 30 in each respective column
ment of estimated income tax, then enter 1/4 of line 9 in column 1, 1/2
and the cumulative amounts on line 10 of page 1. This is the amount of
of line 9 in column 2, 3/4 of line 9 in column 3 and an amount equal to
the required payments for each period.
line 9 in column 4. If you are utilizing the annualized income install-
ment method, enter the amounts from line 32 in the respective columns.
Follow the instructions for lines 11 through 15 to compute the
amount of interest for the underpayment of estimated taxes, if any.
COM/RAD-302
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