Form 504up - Underpayment Of Estimated Maryland Income Tax By Fiduciaries - 2012 Page 3
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1
2
3Underpayment of Estimated
2012
FORM
504UP
Maryland Income Tax By
Fiduciaries Instructions
GENERAL INSTRUCTIONS
Line 11
Section 10-815 of the Tax-General Article of the Annotated Code
Enter in each column the sum of any estimated payments you
of Maryland requires every individual, including a fiduciary, who
have made and any Maryland tax withheld for the period covered
by that column. NOTE: Just as in line 10, each successive entry
receives taxable income which is not subject to Maryland with-
holding or from which not enough Maryland tax is withheld to file
will include the amount from the prior columns. For example, if
a declaration of estimated tax if the income can be expected to
you paid $500 in estimated payments each quarter, the first col-
develop a tax of more than $500 in excess of the Maryland with-
umn will contain $500, the second $1,000, the third $1,500 and
holding. Furthermore, Sections 13-602 and 13-702 stipulate that
the fourth $2,000.
any individual required to file, who either (1) fails to file on the
Lines 13 through 15 determine the amount of interest due for
date or dates prescribed; (2) fails to pay the installment or install-
each underpaid quarter.
ments when due or (3) estimates a tax less than 90% of the
Line 13
developed tax shown on the return for the current tax year and
less than 110% of the tax that was developed for the prior year,
The factors represent the interest rate for the portion of the year
shall be subject to interest and penalty.
between the due date of each quarter and the due date of the
next quarter. The rate is 1/12 of 13% for each month or part of a
WHO MUST FILE
month from the due date. If your estimated tax payment was not
If you believe that you are liable for interest for one of the rea-
timely, but was paid earlier than the due date of the next quarter,
sons outlined above, then please complete and submit this form
adjust the factor as follows: count the number of months from the
with your tax return.
due date that the payment was late; treat a partial month as one
If you meet one of the following exceptions, then you are not
month. Divide that number by twelve and multiply it by the 13%
required to file this form:
annual rate and apply this adjusted factor to 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
withholding is $500 or less or
above, determine the amount of interest due for each quarter and
enter the amounts in the appropriate columns.
(3) each current year payment, made quarterly as required, is
equal to or more than 1/4 of 110% of last year’s tax.
Line 15
If you want us to figure the interest for you, complete your return
Add all interest amounts from columns 1 through 4 on line 14.
as usual. Do not file Form 504UP. You will be notified of any inter-
Enter the total interest on line 40 of your Form 504. Attach this
form to your Form 504.
est due.
IMPORTANT: If you complete Form 504UP and, because of the dis-
ANNUALIZED INCOME INSTALLMENT METHOD
tribution of income, have no interest due, attach the form to your
If your income varied during the year, you may be able to lower or
fiduciary return and write code number 301 in one of the boxes
eliminate the amount of one or more required installments by
marked Code Number at the bottom of Form 504.
using the annualized income installment method. If you use this
If you use the annualization method to calculate interest for
method for any payment due date, you must use it for all pay-
underpayment of estimated tax, attach Form 504UP to your fidu-
ment due dates. This method automatically selects the smaller of
ciary return and write code number 301 in one of the boxes
the annualized income installment or the regular installment.
marked Code Number at the bottom of Form 504. In order for
You must complete lines 16-32 of one column before starting the
the Revenue Administration Division to recognize your use
next column.
of this calculation method, you must enter the code num-
Line 16
ber and attach the form, even if there is no interest due.
Enter in each column the income received for the period of the
SPECIFIC INSTRUCTIONS
year covered by the column. NOTE: Each successive column will
Lines 1 through 9 are used to determine the minimum amount
include the amount from the prior columns. See the example in
required to be paid by estimated or withholding tax to avoid inter-
the instructions for line 11.
est.
Line 19
Lines 1 through 3
Personal representatives of a decedent’s estate should enter
Enter the amounts specified from your 2012 Form 504.
$600, all other fiduciaries enter $200.
Line 4
Line 21
Multiply the amount from line 5 of Form 502TP by the highest
Compute the state and local tax on the amount from line 20 using
state rate used on your tax return. Add to this result the amount
the tax rate schedules provided in the instructions for Form 504.
from line 5 of Form 502TP multiplied by your local (or special non-
Enter the total on line 21.
resident) tax rate.
Line 22
Line 8
Enter in the appropriate column the amount of any credits from
If your 2011 tax was corrected or amended, be sure to include
lines 32 through 34 of Form 504 and tax developed on tax prefer-
any additional tax when calculating your total tax for the year.
ence items. (See instructions for line 4).
Lines 10 through 12 will determine which periods are underpaid
Line 32
and the amount of underpayment.
Enter the smaller of line 27 or line 30 in each respective column
Line 10
and the cumulative amounts on line 10 of page 1. This is the
If you are utilizing the regular method of computing the under-
amount of the required payments for each period.
payment of estimated income tax, then enter 1/4 of line 9 in col-
Follow the instructions for lines 11 through 15 to compute the
umn 1, 1/2 of line 9 in column 2, 3/4 of line 9 in column 3 and an
amount of interest for the underpayment of estimated taxes, if
amount equal to line 9 in column 4. If you are utilizing the annu-
any.
alized income installment method, enter the amounts from line 32
in the respective columns.
COM/RAD-302
12-49
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