The Maryland 515 form is a tax return for nonresidents who work in Maryland but reside in Delaware, New York, and Pennsylvania, areas that impose a local income or earnings tax on Maryland residents. It details income, deductions, and credits to calculate Maryland state and local taxes owed or refunds due. If you live in one of these jurisdictions and earn wages in Maryland, you may need to file this form. Click the button below to get started on your Maryland 515 form today.
In the state of Maryland, nonresidents who work within its borders but reside in certain jurisdictions of Delaware, New York, and Pennsylvania face a unique tax situation due to the Maryland 515 form. This document is pivotal for those who are subject to local income or earnings taxes in their home jurisdictions, as it helps offset taxation and prevent double-taxing the individual's income. Essentially, the Maryland 515 form serves as an income tax return specifically for nonresidents employed in Maryland, incorporating various sections such as personal information, income and adjustments information, deductions, Maryland tax computation, and personal income tax credits, all tailored to cater to their particular tax obligations. It encompasses detailed instructions on filing status, exemptions, income calculations – including federal, Maryland, and non-Maryland income – and how to calculate and apply for deductions and credits. Key considerations include the distinction of filing statuses, detailed exemptions based on age, blindness, dependents, and the precise methodology for income reporting and tax computation on both state and local levels. Crucially, it clarifies the tax responsibilities of nonresidents, delineating how their income derived from Maryland sources is subjected to local tax, and outlines the allowance for certain deductions and credits, providing a structured process to determine taxable net income, applicable Maryland and local taxes, potential credits, and the final tax obligations or refunds due. This form, thus, plays a significant role in ensuring that nonresident workers are taxed fairly, reflecting Maryland's approach to handling cross-state employment and the complexities involved in local and state income taxation.
FORM
FOR NONRESIDENTS EMPLOYED IN MARYLAND WHO RESIDE IN JURISDICTIONS
OF DELAWARE, NEW YORK AND PENNSYLVANIA THAT IMPOSE A LOCAL INCOME
NONRESIDENT515
OR EARNINGS TAX ON MARYLAND RESIDENTS
MARYLAND TAX RETURN
LOCAL TAX (OR FISCAL YEAR BEGINNING
2002, ENDING
)
Your first name
Initial
Last name
PrintPlease InkBlackorBlueOnly
Spouse’s first name
Present address (No. and street)
Name of county and incorporated city, town, or special taxing area in which you were employed on the last day of the taxable period. (See Instruction 6)
YOUR FILING STATUS— See Instruction 2 to determine if you are required to file.
1.☐ Single (If you can be claimed on another person’s tax return, use Filing Status 6)
2.☐ Married filing joint return or spouse had no income
▶3. ☐ Married filing separately
4. ☐ Head of household
SPOUSE’S SOCIAL SECURITY NUMBER
5.☐ Qualifying widow(er) with dependent child
6.☐ Dependent taxpayer (Enter 0 in Exemption Box (A)—See Instruction 7)
RESIDENCE INFORMATION
Enter your state of legal residence. _______________________________________
If not a resident for a full year, give dates.
FROM _____________________ TO _____________________
In what local taxing jurisdiction did you reside on the last day of the taxable period?
Did you file a Maryland income tax return for 2001? Yes ☐ No ☐
If “Yes,” was it a ☐ Resident or a ☐ Nonresident Return?
2002
$
▶
S O C I A L
S E C U R I T Y
N U M B E R ( S ) R E Q U I R E D
City or town
State
Zip code
Maryland county
City, town or taxing area
EXEMPTIONS— See Instruction 10
Exemption Amount
(A) Yourself ☐
Spouse ☐
(A)
× $2,400
$ ______________
Check here if you are:
Spouse is:
(B) ▶ ☐ ▶ ☐
▶ ☐ ▶ ☐
(B)
× $1,000
65 or over Blind
65 or over
Blind
(C) Dependent Children:
Enter Total (C)
Name(s)
Social Security number(s)
________________________________ __ __ __-__ __-__ __ __ __
(D) Other Dependents:
☐
☐ Enter Total (D)
Name(s) and Relationship(s)
Total
(E) Enter Total Exemptions (Add A, B, C and D) ▶ (E)
Amount$ ____________
FEDERAL
MARYLAND
NON-MARYLAND
INCOME AND ADJUSTMENTS INFORMATION (See Instruction 10)
INCOME (LOSS)
1.
Wages, salaries, tips, etc
1
2.
Taxable interest income
. .
2
3.
Dividend income
3
yourof wage
4.
Taxable refunds, credits or offsets of state and local income taxes
4
ONEstaple.
5.
Alimony received
5
8.
Other gains or (losses) (from federal Form 4797)
8
6.
Business income or (loss)
6
7.
Capital gain or (loss)
7
top
with
9.
Taxable amount of pensions, IRA distributions, and annuities
9
ordermoneyon
attachandhere
10.
Rents, royalties, partnerships, estates, trusts, etc. (Circle appropriate item) . . .
10
11.
Farm income or (loss)
11
12.
Unemployment compensation (insurance)
12
13.
Taxable amount of social security and tier 1 railroad retirement benefits
13
14.
Other income (including lottery or other gambling winnings)
14
orcheckyourPlace
statementstaxand
15.
Total income (Add lines 1 through 14)
15
16.
Total adjustments to income from federal return (IRA, alimony, etc.) . . .
16
17.
Adjusted gross income (Subtract line 16 from 15)
▶ 17
ADDITIONS TO INCOME (See Instruction 11)
Dollars
Cents
18.
Non-Maryland loss
. . .
. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . 18
19.
Other (Enter code letter(s) from Instruction 11). . . .
. . . . 19
20.
Total Additions (Add lines 18 and 19)
. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . ▶ 20
21.
Total federal adjusted gross income & Maryland additions (Add lines 17 (Column 1) and 20)
. . . . 21
SUBTRACTIONS FROM INCOME (See Instruction 12)
22. Non-Maryland income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23. Other (Enter code letter(s) from Instruction 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
23
24. Total Subtractions (Add lines 22 and 23) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
25. Maryland adjusted gross income (Subtract line 24 from line 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
25
COM/RAD-02302-49
2002 MARYLAND FORM 515
PAGE 2
DollarsCents
26. Amount from line 25 (Maryland adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
DEDUCTION METHOD (All taxpayers must select one method and check the appropriate box)
26
27. STANDARD DEDUCTION METHOD
See Instruction 14 and enter amount
ITEMIZED DEDUCTION METHOD
See Instruction 15 and enter amount
27
28
28.
Net income (Subtract line 27 from line 26.)
. . . . . . . . . . . . .
. . . . .
. . . . . . . .
.
. . . . . . . . . .
29.
Total exemption amount (from EXEMPTIONS area, page 1). See Instruction 17
29
30.
Enter your Maryland income factor (from the worksheet in Instruction 13)
30
. . . .
31.
Maryland exemption allowance (Multiply line 29 by line 30.)
31
. . . . . . . . . . . .
32.
Taxable net income (Subtract line 31 from line 28.) Figure tax on this amount
32
MARYLAND TAX COMPUTATION
33.
Maryland tax (from Tax Table or Computation Worksheet)
33
34.
Earned income credit (1⁄2 of federal earned income credit). See Instruction 19. . . .
34
35.
Poverty level credit (See Instruction 19.)
35
36.
Personal Income tax credits from Part H, line 9 of Form 502CR. (Attach Form 502CR.)
36
37.
Business tax credits (Attach Form 500CR.)
37
38.
Total credits (Add lines 34 through 37.)
38
39.
Maryland tax after credits (Subtract line 38 from line 33.) If less than 0, enter 0
39
LOCAL TAX COMPUTATION
40.
Local tax (from Local Tax Worksheet in Instruction 20). Enter local tax rate used
0
. . . . . . .
40
. . . . . .
. . . ..
41.
Local earned income credit (from Local Earned Income Credit Worksheet in Instruction 20)
41
42.
Local poverty level credit (from Local Poverty Credit Level Worksheet in Instruction 20)
42
43.
Total credits (Add lines 41 and 42.)
43
. . . . . . . . . . . . . .
44.
Local tax after credits (Subtract line 43 from line 40.) If less than 0, enter 0
44
45.
Total Maryland and local tax (Add lines 39 and 44.)
45
46.
Contribution to Chesapeake Bay and Endangered Species Fund
46
47.
Contribution to Fair Campaign Financing Fund
47
48.
Total Maryland income tax, local income tax and contributions (Add lines 45, 46 and 47.)
48
49.
Total Maryland and local tax withheld (Enter total from and attach your W-2 and 1099 forms if MD and/or local tax is withheld)
49
50.
2002 estimated tax payments, amount applied from 2001 return and payment made with an extension request Form 502E
50
51.
Refundable earned income credit (from worksheet in Instruction 19)
51
52.
Enter amount of Maryland tax from line 39 if Pennsylvania resident
52
53.
Refundable personal income tax credits from Part J, line 4 of Form 502CR (Attach Form 502CR. See Instruction 21)
53
54.
Total payments and credits (Add lines 49 through 53.)
54
55.
Balance due (If line 48 is more than line 54, subtract line 54 from line 48.) . . . .
55
56.
Overpayment (If line 48 is less than line 54, subtract line 48 from line 54.)
56
57.
Amount of overpayment TO BE APPLIED TO 2003 ESTIMATED TAX
57
58.
Amount of overpayment TO BE REFUNDED TO YOU (Subtract line 57 from line 56.)
58
or for late filing
59.
Interest charges from Form 502UP ▶
59
60.
TOTAL AMOUNT DUE (Add line 55 and line 59.)
. . . . . . . . . .IF $1 OR MORE, PAY IN FULL WITH THIS RETURN.
60
For credit card payment check here
and see Instruction 24. Direct Debit is not available.
- -
Daytime telephone no.
Home telephone no.
▶ ☐ Check here if you use a paid
preparer and do not want Maryland
CODE NUMBER
FOR OFFICE USE ONLY
forms mailed to you next year.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements
Make checks payable to: COMPTROLLER OF MARYLAND.
and to the best of my knowledge and belief it is true, correct and complete. If prepared by a person other than taxpayer, the
Write social security no. on check using blue or black ink.
declaration is based on all information of which the preparer has any knowledge. Check here ☐ if you authorize your
Mail to: Comptroller of Maryland, Revenue Administration Division,
preparer to discuss this return with us.
Annapolis, Maryland 21411-0001
Your signature
Date
Spouse’s signature
COM/RAD-023
02-49
Signature of preparer other than taxpayer
Preparer’s SSN or PTIN
Address and telephone number of preparer
MARYLAND INCOME TAX RETURN
FORM 515
For nonresidents employed in Maryland
who reside in jurisdictions of Delaware, New York and Pennsylvania that impose a local income or earnings tax on Maryland residents.
I N S T R U C T I O N S
2 0 0 2
IMPORTANT NOTES
DUE DATE
Your return is due by April 15, 2003.
COMPLETING THE RETURN
You must use blue or black ink when completing your return. DO NOT use pencil or red ink. Submit the original return, not a photocopy. If no entry is needed for a specif- ic line, leave blank. Do not enter words such as “none” or “zero” and do not draw a line to indicate no entry.
You may round off all cents to the near-
est whole dollar. Fifty cents and above should be rounded to the next higher dollar. State calculations are rounded to the near- est penny.
PENALTIES
There are severe penalties for failing to file a tax return, failing to pay any tax when due, filing a false or fraudulent return or making a false certification. The penalties include criminal fines, imprisonment and a penalty on your taxes. In addition, interest is charged on amounts not paid.
To collect unpaid taxes, the Comptroller is directed to enter liens against the salary, wages or property of delinquent taxpayers.
EXPLANATION OF TAX
The individual’s employer shall withhold the Maryland local income tax. The individ- ual shall not be required to file a Maryland return, nor the employer withhold the tax, if the Comptroller determines that the locality in which the individual resides does not impose a tax on Maryland residents with respect to income from salary, wages or other compensation for personal services performed in the locality or, if it does impose such a tax, that it provides an exemption, credit or other procedure whereby the in- come of residents of Maryland is rendered free of taxation and withholding.
1 Who is a nonresident? In general, every individual other than a resident of Maryland is a nonresident.
You are a nonresident if you do not have your permanent home in Maryland and did not maintain a place of abode (that is, a place to live) in Maryland for more than six
months of the tax year.
If you establish or abandon legal resi- dence in Maryland during the taxable year, you are taxable as a resident for the portion
of the year during which your legal resi- dence was in Maryland. (See Form 502 Instructions.)
Who must file? Decide if you must file a nonresident Maryland income tax return, Form 515. In general, you are liable for
2 local income tax and must file this return if you are a nonresident of Maryland AND you received salary, wages or other compensation for personal services performed in any county of Maryland or in Baltimore City AND you lived in jurisdictions of Delaware, New York and Pennsylvania that imposed a local or earnings tax on Maryland residents AND you are required to file a federal return.
TO DETERMINE IF YOU ARE REQUIRED
TO FILE A MARYLAND RETURN:
a.Add up all of your federal gross income (except any income which is exempt by law) to determine your total income.
b.Do not include social security or railroad retirement benefits in your total federal income.
c.Add to your total federal income any Maryland additions to income. Do not include any additions related to non-Maryland income or loss. (See Instruction 11.) This is your Maryland gross income.
d.If you are a dependent taxpayer, add to your total federal income any Maryland
additions and subtract any Maryland sub- tractions. (See Instructions 11 and 12.) This is your Maryland gross income. e. You must file a Maryland return if your Maryland gross income equals or
exceeds the income levels in Table 1.
f.If you or your spouse is 65 or over, use Table 2, “Minimum Filing Levels for Tax- payers 65 or Over” on this page.
MARYLAND TAX WITHHELD
IN ERROR:
If Maryland tax was withheld from your income, you must file to obtain a refund of the withholding. Complete all of the infor- mation at the top of the form through the
filing status, residence information and exemption areas. Enter your federal adjust- ed gross income on line 17 in both columns 1 and 3 and line 24. Then complete lines 34, 49-54, 56 and 58.
Sign the form and attach withholding statements (Form W-2 or 1099) showing Maryland tax withheld equal to the refund you are claiming.
Your form is then complete. You must file within three years of the original due date to receive any refund.
Table 1
Minimum Filing Level Tables
Table 2
For taxpayers under 65
For taxpayers 65 or over
Single persons (including dependent taxpayers)
. . .$ 7,700
Single, age 65 or over . .
. . . . . . . . . . . . . . . . .
. .$
8,850
Joint return
. . . 13,850
Joint return, one spouse age 65 or over
14,750
Married persons filing separately
. . . 3,000
Joint return, both spouses age 65 or over
15,650
Head of household
. . . 9,900
Married persons filing separately, age 65 or over
3,000
Qualifying widow(er)
. . . 10,850
Head of household, age 65 or over
11,050
Qualifying widow(er), age 65 or over
11,750
What income is taxable? If you are required to file Form 515, then you are subject to local income tax on that portion
3 of your federal adjusted gross income that is derived from salary, wages or other compensation for personal services performed in any county of Maryland or Baltimore City. If you reside in New York City or Wilmington, Delaware, your wages are also subject to Maryland tax. If you have income other than wages subject to Maryland tax, you must also file Form 505. For further information and forms, call 410-260-7980 from Central Maryland or 1-800-MDTAXES from elsewhere.
Use of federal return. First complete your 2002 federal income tax return.
You will need the information from your federal return in order to complete your Maryland return. Therefore, complete your federal return before you continue beyond
this point. Maryland law requires that your income and deductions be entered on your Maryland return exactly as they were reported on your federal return. However,
all items reported on your Maryland return are subject to verification, audit and revi- sion by the Maryland State Comptroller’s Office.
Name and address information. Complete the “Name,” “Address” and “Social Security Number” boxes.
County, city, town information. Fill in the boxes for MARYLAND COUNTY and CITY, TOWN OR TAXING AREA based on where you were employed on the last day of the taxable period.
IF YOU WORKED IN BALTIMORE CITY:
Leave the MARYLAND COUNTY box blank.
Write “Baltimore City” in the CITY, TOWN OR TAXING AREA box.
IF YOU WORKED IN A MARYLAND COUNTY (NOT BALTIMORE CITY):
1.Write the name of the county in the MARYLAND COUNTY box.
2.Find the county in the list below.
3.If you worked in one of the areas listed under the county, write its name in the CITY, TOWN OR TAXING AREA box.
4.If you did not work in one of the areas listed for the county, leave the CITY, TOWN OR TAXING AREA box blank.
LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND
ALLEGANY COUNTY
CARROLL COUNTY
BARTON
HAMPSTEAD
BELAIR
MANCHESTER
BOWLING GREEN-ROBERT’S PLACE
MT. AIRY
CRESAPTOWN
NEW WINDSOR
CUMBERLAND
SYKESVILLE
ELLERSLIE
TANEYTOWN
FROSTBURG
UNION BRIDGE
LAVALE
WESTMINSTER
LONACONING
LUKE
CECIL COUNTY
McCOOLE
CECILTON
MIDLAND
CHARLESTOWN
MT. SAVAGE
CHESAPEAKE CITY
POTOMAC PARK ADDITION
ELKTON
WESTERNPORT
NORTH EAST
ANNE ARUNDEL COUNTY
PERRYVILLE
PORT DEPOSIT
ANNAPOLIS
RISING SUN
HIGHLAND BEACH
BALTIMORE COUNTY
CHARLES COUNTY
INDIAN HEAD
NO INCORPORATED
LA PLATA
CITIES OR TOWNS
PORT TOBACCO
BALTIMORE CITY
DORCHESTER COUNTY
BROOKVIEW
CALVERT COUNTY
CAMBRIDGE
CHESAPEAKE BEACH
CHURCH CREEK
NORTH BEACH
EAST NEW MARKET
ELDORADO
CAROLINE COUNTY
GALESTOWN
DENTON
HURLOCK
SECRETARY
FEDERALSBURG
VIENNA
GOLDSBORO
GREENSBORO
FREDERICK COUNTY
HENDERSON
HILLSBORO
BRUNSWICK
MARYDEL
BURKITTSVILLE
PRESTON
EMMITSBURG
RIDGELY
FREDERICK
TEMPLEVILLE
MIDDLETOWN
MYERSVILLE
NEW MARKET
ROSEMONT
THURMONT
WALKERSVILLE
WOODSBORO
GARRETT COUNTY
ACCIDENT
DEER PARK
FRIENDSVILLE
GRANTSVILLE
KITZMILLER
LOCH LYNN HEIGHTS
MOUNTAIN LAKE PARK
OAKLAND
HARFORD COUNTY
ABERDEEN
BEL AIR
HAVRE DE GRACE
HOWARD COUNTY
KENT COUNTY
BETTERTON
CHESTERTOWN
GALENA
MILLINGTON
ROCK HALL
MONTGOMERY COUNTY
BARNESVILLE
BROOKEVILLE CHEVY CHASE SEC. 3 TOWN OF CHEVY CHASE (FORMERLY SEC. 4)
CHEVY CHASE SEC. 5 CHEVY CHASE VIEW CHEVY CHASE VILLAGE DRUMMOND FRIENDSHIP HEIGHTS GAITHERSBURG GARRETT PARK
GLEN ECHO
KENSINGTON
LAYTONSVILLE MARTIN’S ADDITION NORTH CHEVY CHASE OAKMONT POOLESVILLE ROCKVILLE SOMERSET TAKOMA PARK WASHINGTON GROVE
PRINCE GEORGE’S COUNTY
TALBOT COUNTY
BERWYN HEIGHTS
EASTON
BLADENSBURG
OXFORD
BOWIE
QUEEN ANNE
BRENTWOOD
ST. MICHAELS
CAPITOL HEIGHTS
TRAPPE
CHEVERLY
COLLEGE PARK
WASHINGTON COUNTY
COLMAR MANOR
BOONSBORO
COTTAGE CITY
CLEARSPRING
DISTRICT HEIGHTS
FUNKSTOWN
EAGLE HARBOR
HAGERSTOWN
EDMONSTON
HANCOCK
FAIRMOUNT HEIGHTS
KEEDYSVILLE
FOREST HEIGHTS
SHARPSBURG
GLENARDEN
SMITHSBURG
GREENBELT
WILLIAMSPORT
HYATTSVILLE
LANDOVER HILLS
WICOMICO COUNTY
LAUREL
DELMAR
MORNINGSIDE
FRUITLAND
MT. RAINIER
HEBRON
NEW CARROLLTON
MARDELA SPRINGS
NORTH BRENTWOOD
PITTSVILLE
RIVERDALE PARK
SALISBURY
SEAT PLEASANT
SHARPTOWN
UNIVERSITY PARK
WILLARDS
UPPER MARLBORO
QUEEN ANNE’S COUNTY
WORCESTER COUNTY
BERLIN
BARCLAY
OCEAN CITY
CENTREVILLE
POCOMOKE CITY
CHURCH HILL
SNOW HILL
QUEENSTOWN
SUDLERSVILLE
ST. MARY’S COUNTY
LEONARDTOWN
SOMERSET COUNTY
CRISFIELD
PRINCESS ANNE
Filing status. Check the filing status box which matches the filing status you used on your federal return unless you are a
7 dependent taxpayer.
A dependent taxpayer is one who can be claimed as a dependent on another person’s federal return. If married, taxpayer and spouse must file separate returns. A dependent taxpayer may not claim a per- sonal exemption for himself. Check the box for filing status 6.
Generally, if you filed a joint federal return for 2002, you must file a joint Mary- land return. Married couples who file joint federal returns may file separate Maryland returns when one spouse is a resident of Maryland and the other spouse is a nonresident of Maryland. If you and your
spouse filed separate federal returns, you must file separate Maryland returns. A surviving spouse may file a joint return with a decedent if a joint federal return was filed.
8 Residence information. Answer all questions and fill in the appropriate boxes.
Exemptions. Determine what exemptions you are entitled to, and check the appropriate boxes on the form.
EXEMPTIONS ALLOWED
You are permitted the same number of exemptions which you are permitted on your federal return; however, the exemption amount is different on the Maryland return. Even if you are not required to file a feder- al return, the federal rules for claiming exemptions still apply to you. Refer to the
federal income tax instructions for further information.
In addition to the exemptions allowed on your federal return, you and your spouse are permitted to claim exemptions for being age 65 or over or for blindness. These additional exemptions are in the amount of $1,000 each.
NOTE: If “Other Dependents” are 65 or over, you receive an extra exemption of $2,400 which is not permitted on the feder- al return. Simply check the appropriate boxes.
Complete the exemptions area on the front of Form 515 to determine the amount of exemption allowance to enter on line 29.
Income and adjustments. Complete lines 1-17 of the Federal Income column using the figures from your federal return.
Enter in the Maryland Income column all salaries or wages which were derived from Maryland sources. Enter in the Non- Maryland Income column all other income or loss. Adjustments to federal gross income
are not generally applicable to Maryland unless they pertain to compensation for services performed in Maryland.
If you have income from Maryland such as business income, rental income, lottery
winnings, etc., other than salary, wages or other compensation for services performed in Maryland, you must file two nonresident returns. The wage income is taxed on Form 515 and the non-wage income on Form 505.
Additions to income. Determine which additions to income apply to you. Write the correct amounts on lines 18 and 19 and the total on line 20 of Form 515. Instructions for each line:
Line 18. NON-MARYLAND LOSS. If the amount on line 17 in Column 3 is a loss, enter it on line 18 and do not make
you, enter the total amount on line 19 and identify each item using the code letter.
are not subject to federal tax because of
a treaty.
b. Pickup contributions of a state retire-
any entry on line 22.
▼
CODE LETTER
ment or pension system member. (The
Line 19. OTHER ADDITIONS TO INCOME. If one or more of these apply to
a. Wages, salaries or other compensation for services performed in Maryland that
pickup amount will be stated separately
on your W-2 form.)
Subtractions from income. Determine which subtractions from income apply to you. Write the correct amounts on lines 22 and 23 and the total on line 24 of Form 515. Instructions for each line:
Line 22. NON-MARYLAND INCOME. If the amount on line 17 in Column 3 is not a loss, enter it on line 22 and do not make any entry on line 18.
Line 23. OTHER SUBTRACTIONS FROM INCOME. If one or more of these apply to your Maryland income, enter the total amount on line 23 and identify each item using the code letter.
a.Child care expenses. You may subtract the cost of caring for your dependents while you work. There is a limitation of $3,000 ($6,000 if two or more depen- dents receive care.) Copy the amount from line 3 of either federal Form 2441 or Form 1040A Schedule 2.
b.Expenses up to $5,000 incurred by a blind person for a reader, or up to $1,000
incurred by an employer for a reader for a blind employee.
c. The amount added to your taxable income for the use of an official vehicle used by a member of a state, county or local police or fire department. The amount is stated separately on Form W-2.
d.The lesser of $1,200 or the Maryland income of the spouse with the lower income if both spouses have Maryland income and you file a joint return.
Maryland income factor. You must adjust your standard or itemized deductions and exemptions based on the percentage of your income subject to Maryland tax. Complete the worksheet below to figure the percentage of Maryland income to total income. If the result is less than 0 or greater than 1.0, use 1 as your factor. NOTE: if Maryland adjusted gross income (Line 25) is 0, use 0 as your factor.
MARYLAND INCOME FACTOR WORKSHEET
1. Enter your federal adjusted gross income (from line 17, Column 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your Maryland adjusted gross income (from line 25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Maryland income factor. (Divide line 2 by line 1.) If greater than 1, enter 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Standard deduction. Complete line 27 and check the box for standard deduction method.
The standard deduction method gives you a standard deduction without the need to itemize deductions. Use the appropriate worksheet below to determine the total stan-
dard deduction for your filing status and Maryland income.
You must adjust the total standard deduc- tion based on the percentage of Maryland
income. Use the Maryland income factor from Instruction 13 to figure your Maryland standard deduction.
Figure your standard deduction
If your filing status is:
• Single
• Married filing jointly
• Married filing separately
• Head of household
or
• Dependent taxpayer
• Qualifying widow(er)
Use Worksheet 1, below.
Use Worksheet 2, below.
Worksheet 1
Worksheet 2
If your income on
Your standard
line 26 is between:
deduction is:
$1 - 10,000
. . . . . . . . . . . . . . . .
.$
1,500
$1 - 20,000
If your income on line 26 is between $10,000-13,333
If your income on line 26 is between $20,000-26,667
Enter income from line 26:
.$ _________
Multiply by 15 percent (.15)
.X
.15
This is your standard deduction
line 26 is:
$13,333 or over
2,000
$26,667 or over
4,000
Enter your standard deduction on line 1 below.
STANDARD DEDUCTION CALCULATION
1. Enter your standard deduction from Standard Deduction Worksheet above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. Enter your Maryland income factor (from line 3, Instruction 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Total Maryland standard deduction (Multiply line 1 by line 2). Enter here and on line 27 . . . . . . . . . . . . . . . . . . . . .
Itemized deductions. If you figure your tax by the ITEMIZED DEDUCTION METHOD, complete line 27 and check the box for Itemized Deduction Method.
To use the ITEMIZED DEDUCTION METHOD, you must itemize your deductions on your federal return and complete federal Form 1040 Schedule A. Copy the amount from Schedule A, line 28, Total Itemized Deductions, onto line 1 of the Itemized Deduction Worksheet below. Complete lines 1 to 5 and enter result on line 27 of Form
515.Also, any mount deducted as contribu- tions of Preservation and Conservation Easements for which a credit is claimed on
Form 502CR must be added to line 2. NOTE: Certain high-income taxpayers are required to reduce their federal itemized deductions. If you had to reduce your total federal itemized deductions, use the ratio of allowed deductions (federal Schedule A, line
28)to total deductions (the sum of lines 4, 9, 14, 18, 19, 26 and 27) to calculate the amount of state and local taxes to be entered on line 2 of the following worksheet.
You are not required to itemize deductions
on your Maryland return simply because you itemized on your federal return. Figure your tax each way to determine which method is best for you.
Your Maryland itemized deductions are limited to those deductions related to Mary- land income. You must adjust the total item- ized deductions based on the percentage of Maryland income. Use the Maryland income factor from Instruction 13 to figure your allowable Maryland itemized deductions.
ITEMIZED DEDUCTIONS WORKSHEET
1. Total federal itemized deductions (from line 28, federal Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2. State and local income taxes included in federal Schedule A, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3. Net deductions (Subtract line 2 from line 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4. Enter your Maryland income factor (from line 3, Instruction 13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5. Total Maryland itemized deductions (Multiply line 3 by line 4). Enter here and on line 27. . . . . . . . . . . . . . . . . . . . .
Exemption allowance computation. You must adjust the total exemption amount on line 29 based on the percentage of Maryland income. On line 30 enter the Maryland income factor from Instruction 13 to figure your Maryland exemption allowance.
17
Figure your Maryland taxable net income. Subtract line 31 from line 28.
18
Figure the Maryland tax. You must use the tax table if your taxable income is less than $100,000.
Find the income range in the tax table that applies to the amount you reported on line 32 of your return. Find the Maryland tax corre-
sponding to your income range. Enter the tax amount on line 33 of your return. If your tax- able income on line 32 is $100,000 or more,
use the Maryland Tax Computation Work- sheet at the end of the tax table.
19
Earned income, poverty level, and other credits for individuals and businesses. You may claim a credit on line 34 equal to one-half of the earned income credit on your federal return multiplied by the Maryland income factor. You may claim a credit on line 35 of 5% of your earned income multiplied by the Maryland income factor if your income is less than the pover- ty income guidelines. You may also be eligible for a refundable earned income credit.
EARNED INCOME CREDIT
If you claimed an earned income credit on your federal return, then you may claim one- half (50%) of the federal credit multiplied by the Maryland income factor on your Maryland return. If you filed a joint federal return, but a separate Maryland return, you may claim a combined total of up to one-half the federal credit. Complete Part I of the worksheet below to calculate the amount to enter on line 34 of Form 515.
This is not a refundable credit.
POVERTY LEVEL CREDIT
If your earned income and federal adjusted gross income are below the poverty level income for the number of exemptions on your federal tax return, you may be eligible for the poverty level credit.
You are not eligible for this credit if you checked filing status 6 (dependent taxpayer) on your Maryland income tax return.
Generally, if your Maryland state tax exceeds 50% of your federal earned income credit and your earned income and federal adjusted gross income are below the poverty income guidelines from the worksheet, you may claim a credit of 5% of your earned income multiplied by the Maryland income factor.
Complete Part II of the worksheet below to calculate the amount to enter on line 35 of Form 515.
PERSONAL INCOME TAX CREDITS
Enter the total of your personal income tax credits as listed below. Complete and submit Form 502CR with Form 502.
a. Credits for Income Taxes Paid to Other States. This credit is not available for non- resident taxpayers.
b. Credit for Child and Dependent Care Expenses. If you were eligible for a Child and Dependent Care Credit on your feder- al income tax return and your income is below certain thresholds you are entitled to a tax credit equal to a percentage of the federal credit.
c.Quality Teacher Incentive Credit. If you are a Maryland public school teacher who paid tuition to take graduate level courses required to maintain certification, you may be eligible for a tax credit.
d.Credit for Aquaculture Oyster Floats. If you purchased a new aquaculture oyster float during the tax year on or after July 1, 2002, you may be entitled to a credit of up to $500 for the cost of the float.
EARNED INCOME CREDIT, POVERTY LEVEL CREDIT and
REFUNDABLE EARNED INCOME CREDIT WORKSHEET
PART I – Earned Income Credit
1.Maryland tax (from line 33 of Form 515) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.Federal earned income credit _________ x 50% (.50). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.Multiply line 2 by the Maryland income factor ______% (from line 30). Enter this amount here and on line 34 of Form 515. . . .
4.Subtract line 3 from line 1. If less than zero (0) enter zero (0) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
If line 4 is greater than zero (0), you may qualify for the Poverty Level Credit. Go to Part II.
If line 4 is zero (0), you may qualify for the Refundable Earned Income Credit. Go to Part III.
1._____________
2._____________
3._____________
4._____________
PART II – Poverty Level Credit
If you checked filing status 6 on your Maryland return, you are not eligible for this credit.
POVERTY INCOME
GUIDELINES
1.Enter the amount from line 21, of Form 515. If you checked filing status 3 (married filing separately) and you filed a joint federal return enter your joint federal adjust- ed gross income plus any Maryland additions . . . . . . . . . . . . . . . . . . . . . . . . . .
2.Enter the total of your salary, wages, tips and other employee compensation and net profit from self-employment. (Do not include a farm or business loss.) Also include your distributive share of pass-through entity income . . . . . . . . . . . . . . . .
3.Find the number of exemptions in the chart that is the same as the number of exemptions entered on your federal tax return. Enter the income level that corre- sponds to the exemption number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.Enter the amount from line 1 or 2, whichever is larger. . . . . . . . . . . . . . . . . . . . .
Compare lines 3 and 4. If line 4 is greater than or equal to line 3, STOP HERE. You do not qualify for this credit.
If line 3 is greater than line 4, continue to line 5.
5.Multiply line 2 of Part II by 5% (.05). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.Multiply line 5 by the Maryland income factor _____% (from line 30).
Enter that amount here and on line 35 of Form 515. . . . . . . . . . . . . . . . . . . . . . .
5._____________
6._____________
Number of
Exemptions
on Federal
Income
Return
Level
8,860
11,940
15,020
18,100
21,180
24,260
27,340
30,420
If you have more than 8 exemptions, add $3,080 to the last income level for each addi- tional exemption.
PART III – Refundable Earned Income Credit
You must have one or more dependents who may be claimed as an exemption to claim this credit.
COMPUTE THIS CREDIT ONLY IF LINE 4 IN PART I IS ZERO.
1.Multiply your federal earned income credit ________ by the Maryland income factor ______% (from line 30). . . . . . . . . . . .
2.Multiply line 1 x 16% (.16) and enter the result. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3.Enter your Maryland tax from Part I, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.Subtract line 3 from line 2. If less than zero (0) enter zero (0). This is your refundable earned income credit. . . . . . . . . . . .
If line 4 is greater than zero, enter the amount on line 51 of Form 515.
e.Long-Term Care Insurance Credit. If you paid a premium for a long-term care insurance policy for yourself or certain family members, you may be eligible for a tax credit.
f.Credit for Preservation and Conservation Easements. If you donated an easement to the Maryland Environmental Trust or the Maryland Agricultural Land Preserva- tion Foundation to preserve open space, natural resources, agriculture, forest land, watersheds, significant ecosystems, viewsheds, or historic properties, you may be eligible for a credit.
g.Clean Energy Incentive Credit. If you pur- chased photovoltaic or solar water heat- ing property during the tax year, you may be entitled to a credit for a portion of the costs.
For additional information regarding any of the above personal income tax credits, see the instructions for Form 502CR, Per- sonal Income Tax Credits. Form 502CR
and instructions are available from any office of the Comptroller.
BUSINESS TAX CREDITS
a.Business tax credits (as calculated on Form 500CR) are as follows: Enterprise Zone Tax Credit, Employment Opportuni- ty Tax Credit, Maryland Disability Employ- ment Tax Credit, Job Creation Tax Credit, Neighborhood Partnership Program Tax Credit, Businesses That Create New Jobs Tax Credit, Water Quality Improve- ment Credit, Employer Provided Long- term Care Insurance Credit, Work-based Learning Program Credit, One Maryland Economic Development Tax Credit, Com- muter Tax Credit, Maryland Research and Development Tax Credit, Maryland Clean Energy Incentive Act, Electric and Gas Utility Credits, Credit for Maryland- mined Coal, the Telecommunications Property Tax Credit, and the Heritage Area Mortgage Credit.
For additional information regarding the above income tax credits, see the instructions provided for Form 500CR- Business Tax Credits. Form 500CR is available from any office of the Comp- troller.
REFUNDABLE EARNED
INCOME CREDIT
If one-half of your prorated federal earned income credit is greater than your Maryland tax and you have one or more dependents that you may claim as an exemption on your federal income tax return, you may also be eligible for a refundable earned income credit. This credit is the amount by which 16% of your federal earned income credit multiplied by the Maryland income factor exceeds your Maryland tax liability. Com- plete Part III of the worksheet and enter the result on line 51 of Form 515.
20
Local income tax and local credits. Maryland counties and Baltimore City may levy an income tax which is a per- centage of Maryland taxable income. Use the LOCAL TAX RATE CHART and the LOCAL TAX WORKSHEET to figure your local income tax. Use the county (or Baltimore City) in which you were employed on the last day of the tax year and which you showed in the box at the top of Form 515.
Local earned income credit. If you calculat- ed an earned income credit on line 34 of Form 515, complete the LOCAL EARNED
INCOME CREDIT WORKSHEET.
complete the LOCAL
POVERTY LEVEL
Local poverty level credit. If you calculated
CREDIT WORKSHEET.
a poverty level credit on line 35 of Form 515,
Example for LOCAL TAX WORKSHEET
A married couple filing a joint return has taxable net income on line 32 of Form 515 in the amount of $57,473.32. They work in Baltimore City and have a local tax rate of .0251.
They will calculate their local tax as follows:
$57,473.32
x .0256
___________
before rounding
$ 1,471.3169
rounded to the nearest cent
=
1,471.32
or rounded to the nearest whole dollar
1,471.00
Sample LOCAL TAX WORKSHEET
Multiply the taxable net income by your local tax rate from the LOCAL TAX RATE CHART for the county in which you were employed on the last day of the taxable period. Enter the result on line 40 of Form 515. This is your local income tax.
1. Taxable net income from line 32 of Form 515. . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$57,473.32
2. Local tax rate from the Local Tax Rate Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..0
3. Local income tax (Multiply line 1 by line 2.) Enter this amount on line 40 of Form 515
rounded to the nearest cent or whole dollar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,471.32
LOCAL TAX WORKSHEET
1.Taxable net income from line 32 of Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________
2.Local tax rate from the LOCAL TAX RATE CHART. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 0
3.Local income tax (Multiply line 1 by line 2.) Enter this amount on line 40 of Form 515
rounded to the nearest cent or whole dollar. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$________________
2002 LOCAL TAX RATE CHART
Subdivision
Rate
Baltimore City
.0305
Charles County
.0290
Prince George’s County . . . .
.0310
Allegany County
.0293
Dorchester County
.0262
Queen Anne’s County
.0285
Anne Arundel County
.0256
Frederick County
.0296
St. Mary’s County
Baltimore County
.0283
Garrett County
.0265
Somerset County
.0315
Calvert County
.0260
Harford County
.0306
Talbot County
.0179
Caroline County
.0263
Howard County
.0245
Washington County
.0280
Carroll County
Kent County
.0258
Wicomico County
Cecil County
Montgomery County
.0295
Worcester County
.0125
LOCAL EARNED INCOME CREDIT WORKSHEET
Enter federal earned income credit from your federal return.
. . . . . . . . . . . . . . . . . . . . . . . . . . .1._____________
Enter your local tax rate
. . . . . . . . . . . . . . . . . . . . . . . . . . .2..
Multiply line 2 by 10 and enter on line 4
. . . . . . . . . . . . . . . . . . . . . . . . . . .3.
x10
Example:
Note: In lieu of multiplying by 10 you
s
x 10
d may simply move the decimal point one
.256
place to the right and enter on line 4.
4. Local earned income credit rate . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4..
5.Multiply line 1 by line 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5._____________
6.Multiply line 5 by the Maryland income factor________% (from line 30). Enter here and
on line 41 of Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6._____________
LOCAL POVERTY LEVEL CREDIT WORKSHEET
Refer to the STATE POVERTY LEVEL CREDIT WORKSHEET in Instruction 19. If the amount on line 3 of that worksheet is greater than the amount on line 4, you are eligible to claim the local poverty level credit. Complete this worksheet to calculate the amount of your credit.
A. Enter the amount from line 2 of the STATE POVERTY LEVEL CREDIT WORKSHEET. . . . . . . .A._____________
B. Enter your local tax rate from line 2 of the LOCAL TAX WORKSHEET. . . . . . . . . . . . . . . . . . . .B._____________0
C. Multiply line A by line B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C._____________
D. Multiply line C by the Maryland income factor _________% (from line 30). Enter
the amount here and on line 42 of Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .D._____________
21 Taxes paid and credits. Write your taxes paid and credits on lines 49-53.
Line 49. Write the total Maryland and local tax withheld as shown on the wage and tax statements (Forms W-2, W-2G or 1099) you have received. Add up the amounts identified as Maryland and local tax withheld on each form and write the total on line 49. Attach Forms W-2, W-2G and 1099 to your return if Maryland tax is
withheld.
IMPORTANT: Your wage and tax state- ments contain many numbers. Be sure you add only the amounts identified as Mary- land and local tax withheld.
Line 50. Enter on line 50 the total of:
a.Maryland estimated tax payments, AND
b.Payment made with a request for an automatic extension of time to file your return.
Line 51. If one-half of your federal earned income credit is greater than your Maryland state income tax, you may be eligible for a refundable earned income credit. See Instruction 19 and complete the
REFUNDABLE EARNED INCOME CRED- IT WORKSHEET to calculate this credit.
Line 52. Complete this line only if you are a Pennsylvania resident. If you reside in New York City or Wilmington, Delaware, do not make an entry on this line. Residents of these cities are subject to both the state tax and the local tax on wages earned in Maryland.
Line 53. REFUNDABLE PERSONAL INCOME TAX CREDITS. Enter the amount from line 4, Part J of Form 502CR. A Her- itage Area Tax Credit is allowed for 20% of qualified rehabilitation expenditures as certi- fied by the Maryland Historical Trust. See Form 502H for qualifications and instructions.
Overpayment or balance due. Calculate the balance due (line 55) or overpayment and refund (line 56).
Telephone numbers, code number, signatures and attachments. Enter your telephone numbers, and sign and date your return. Be sure to attach all required forms, schedules and statements.
If your gross income from farming or fishing is at least two-thirds of your total estimated gross income or if other special circumstances apply, you may be exempt from the interest for underpayment of esti- mated tax. Refer to Form 502UP for addi- tional information. If you are exempt, enter the appropriate code (300 or 301) in the code number box located to the right of the telephone number area.
SIGNATURES
You must sign your return. Both hus- band and wife must sign a joint return. Your
signature(s) signifies that your return, in- cluding all attachments, is, to the best of your knowledge and belief, true, correct and complete, under the penalties of perjury.
If a power of attorney is necessary, complete federal Form 2848 and attach to your return.
TAX PREPARERS
If another person prepared your return, that person must also sign the return and enter their preparer’s tax identification num- ber (PTIN). The preparer declares that the return is based on all information required to be reported of which the preparer has knowledge, under the penalties of perjury.
ATTACHMENTS
Be sure to attach wage and tax state- ments (Form W-2, W-2G or 1099) to the front of your return if Maryland tax is with- held. Be sure to attach all forms, schedules and statements required by these instruc- tions. Place your check or money order on top of your wage and tax statements and fasten with one staple on the front of your tax return.
24 Payment and mailing instructions and deadlines.
PAYMENT BY CREDIT CARD
You may pay your balance due, estimated or extension payments by using Master- Card, Discover, American Express or Visa.
Credit card payments may be made by telephone or over the internet. The internet option is available to everyone. You must have filed a 2001 Maryland income tax return to use the telephone option.
Both options will be processed by Offi- cial Payments Corporation who will charge a convenience fee of 2.5% on the amount of your payment. The State will not receive this fee. You will be told the amount of the fee before you complete your transaction. Do not include the amount of the conve- nience fee as part of the tax payment.
To make a credit card payment call 1- 800-2PAYTAX (1-800-272-9829) or visit their website at:
www.officialpayments.com
PAYMENT BY CHECK
OR MONEY ORDER
Make your check or money order pay- able to “Comptroller of Maryland.” Use blue or black ink. Do not use red ink. Put your social security number, type of tax and year of tax being paid on your check. DO NOT
SEND CASH.
MAILING INSTRUCTIONS
Mail your return to:
Comptroller of Maryland
Revenue Administration Division
Sending your return by certified mail will not result in special handling.
Returns must be mailed by April 15, 2002, for calendar year taxpayers. Persons filing on a fiscal year basis must file by the
15th day of the fourth month following the close of the fiscal year.
EXTENSION OF TIME TO FILE
Follow the instructions on Form 502E to request an automatic extension of the time to file your 2002 return. Filing this form extends the time to file your return, but does not extend the time to pay your taxes. Payment of the expected tax due is required with Form 502E by April 15, 2003. If no tax is due and you requested a feder- al extension, you do not need to file Form 502E or take any other action to obtain an automatic extension.
Completing the Maryland 515 form is a task for nonresidents who worked in Maryland and are from certain jurisdictions. This form ensures that those who work in Maryland but reside in Delaware, New York, or Pennsylvania, which have local taxes, can file for their Maryland taxes correctly. The process requires accuracy and attention to detail to ensure that all the necessary information is provided and that the form is filed correctly.
By following these steps carefully, you can successfully complete the Maryland 515 form. Remember to use black or blue ink and to check the form for any specific filing instructions or updates. This will help ensure that your tax filing process goes smoothly and accurately reflects your earnings and taxes for the year.
The Maryland 515 form is intended for nonresidents who work in Maryland and live in jurisdictions such as Delaware, New York, and Pennsylvania, where local income or earnings taxes are imposed on Maryland residents. The form facilitates the filing of Maryland tax returns by these specific nonresidents, accommodating local tax obligations arising from employment within Maryland.
Nonresidents of Maryland who are employed within the state and reside in Delaware, New York, or Pennsylvania, jurisdictions that impose their local income or earnings tax on Maryland residents, are required to file the Maryland 515 form. This requirement applies if such individuals are also mandated to file a federal tax return and their income includes salary, wages, or other compensation for services performed in Maryland.
The filing status on the Maryland 515 form should align with the status selected on the individual’s federal tax return unless deemed a dependent taxpayer. A dependent taxpayer, who can be claimed as a dependent on another person's federal tax return, should select Filing Status 6 on the form, indicating they may not claim a personal exemption for themselves. Married individuals must file separately if one is a Maryland resident and the other is not. In instances of joint federal returns, a joint Maryland return is typically necessitated unless distinct resident and nonresident statuses apply.
For individuals required to file Form 515, taxable income encompasses the portion of federal adjusted gross income earned from salaries, wages, or other compensation for services performed in any county of Maryland or in Baltimore City. It is pertinent for residents in locales such as New York City or Wilmington, Delaware, as their wages fall subject to Maryland tax. Should an individual possess additional income types subject to Maryland tax, filing both Forms 515 and 505 becomes imperative.
The form is due by April 15 of the year following the taxable period. Filing after this deadline could lead to penalties unless an extension is formally requested and granted. Individuals expecting refunds due to erroneously withheld Maryland tax must file within three years from the original due date to be eligible for the refund.
Failing to use blue or black ink: The Maryland 515 form explicitly requires users to fill out the form using blue or black ink. This instruction is often overlooked, leading to forms being filled out in pencil or other colored inks, which may result in the rejection of the form.
Neglecting to provide complete name and address information: Many individuals leave out crucial details in the name and address sections or provide incomplete information. It's important to fill out the "Name," "Address," and "Social Security Number" boxes fully to ensure the form is processed correctly.
Incorrect filing status: Some filers choose the wrong filing status or fail to note that if they are a dependent taxpayer, they should check the box for filing status 6. This mistake can affect the processing of the form and the amount of tax or refund owed.
Misunderstanding residence information: The form requires detailed residence information, including the state of legal residence and any changes in residency during the year. Failure to accurately complete this section can lead to errors in tax computation.
Errors in the exemptions area: Individuals often incorrectly calculate exemptions or fail to claim exemptions they are entitled to, such as for being 65 or over or for blindness. These mistakes can impact the exemption amount and subsequently the final tax calculation.
Misreporting income: One common error is incorrectly entering income in the wrong column (Federal, Maryland, or Non-Maryland Income columns) or failing to report all sources of income. This can lead to underpayment or overpayment of taxes.
Additionally, here are general tips to ensure accuracy:
Review instructions carefully: Before filling out the form, read all instructions thoroughly to understand each requirement. The instructions provide clarity on what needs to be filled out and how to correctly complete each section.
Check and double-check calculations: Mathematical errors can easily occur. Carefully calculate each financial figure and verify the total income, adjustments, exemptions, and deductions.
Verify personal information: Ensure that all personal information, including Social Security numbers and addresses, is accurate and completely filled out. Mistakes here can lead to processing delays or misplaced refunds.
Use the correct form version: Make sure you are using the most current version of Form 515 for the applicable tax year. Tax forms and instructions may change from year to year.
Seek assistance if needed: If unsure about any part of the form, consider seeking advice from a tax professional or utilizing resources provided by the Maryland Comptroller's office.
When dealing with the Maryland 515 form for nonresidents employed in Maryland, it’s not just about this one document. Several other forms and documents often complement or are required alongside the Maryland 515 Form, reflecting various aspects of an individual’s tax situation. Understanding these associated forms can help ensure a comprehensive and compliant approach to tax filing.
In conclusion, while the Maryland 515 form is specifically designed for nonresidents employed in Maryland, accurately reporting and understanding one's tax obligations may require gathering, understanding, and sometimes filling out several related documents. Each serves an important function in the overall tax filing process, ensuring compliance with Maryland's tax laws and potentially minimizing an individual’s tax liability through credits or deductions for which they may be eligible.
The Maryland 515 form is similar to other state-specific nonresident tax forms, such as the New Jersey NJ-1040NR and the Pennsylvania PA-40NRC. Each of these forms is designed for individuals who earn income in a state where they do not reside, allowing them to report and pay taxes on that income to the respective state. Like the Maryland 515 form, both the NJ-1040NR and PA-40NRC require detailed income information, exemptions, deductions, and credits based on earnings within those states. They also have sections dedicated to calculating the amount of tax owed or the refund due from overpayments. The main similarity is their purpose: to ensure nonresidents comply with state tax laws while avoiding double taxation, thanks to tax agreements or credits for taxes paid to other jurisdictions.
Comparatively, the Maryland 515 form also shares characteristics with the Federal 1040NR form. The 1040NR form is for nonresident aliens who received income from U.S. sources. Both forms address the specific tax situations of individuals not considered residents of the taxing authority for the entire tax year. They differentiate between resident and nonresident income, allow for certain deductions and credits directly related to the income earned within the jurisdiction, and require detailed income statements. However, the Federal 1040NR focuses on international nonresidency, dealing with treaties and worldwide income, whereas the Maryland 515 is concerned with interstate income and tax reciprocity among U.S. states.
When you're getting ready to fill out the Maryland 515 form, there are a few key things to keep in mind. Whether you've done this before or it's your first time, making sure you accurately complete the form can help avoid setbacks. Below, find a concise list of what you should and shouldn't do to make this process smoother.
Do's:
Don'ts:
There are several common misconceptions about the Maryland Form 515, which is a tax return document for nonresidents who are employed in Maryland and reside in jurisdictions of Delaware, New York, and Pennsylvania that impose a local income or earnings tax on Maryland residents. Understanding these misconceptions can help clarify the requirements and benefits associated with this form. The following are seven misconceptions about the Maryland Form 515:
By understanding these misconceptions about the Maryland Form 515, individuals can better navigate their tax responsibilities and possibly reduce their overall tax liability through proper filing.
Filling out and using the Maryland 515 tax form is important for nonresidents who work in Maryland but live in Delaware, New York, or Pennsylvania. Here are key takeaways:
Understanding these pointers can simplify the process of filing the Maryland 515 form and help ensure compliance with Maryland's tax requirements. Remember, filing accurately and on time can avoid penalties and interest.
Must Appear in Court - The Maryland Civil Citation makes it simple to find your citation number; just look under the barcode to find this important piece of information.
Maryland Circuit Court Forms - Helps in determining the full cash value of the property, a critical factor in assessing taxes and fees due.
Maryland Corporate Tax Due Date - Indicates where to staple checks and includes mailing instructions to the Comptroller of Maryland.