This format has increased the number of pages of some of the tax returns. The tax forms on the Web site are available separately from the resident and nonresident instruction booklets.Īll of our tax forms have been reformatted to ensure enhanced readability when paper forms are filed. The resident tax booklets contain both the tax forms and the instructions for each major form. In this example, the real estate taxes make up $8,000 of your $10,000 limitation and only $2,000 are required to be added back as state income taxes. A reasonable interpretation of the law includes the following example: you, a single filer, paid $8,000 in real property taxes and $4,000 in Maryland state income taxes, Maryland will accept an addback of state income tax of $2,000 on Line 17b. Maryland will accept any reasonable interpretation of the limitation reported on line 17b. The addback is limited to $10,000 ($5,000 for married filing separately) and is reported on line 17b of the Maryland Form 502. The new federal limitation impacts your Maryland return because you must addback the amount of state income taxes you claimed as federal itemized deductions. You cannot claim more than $10,000 ($5,000 for married filing separately) for state and local taxes you paid. Limitation on deduction for state and local tax - Federal tax reform limited the amount you can deduct for state and local taxes. The Comptroller's Office encourages you to run your income tax returns under both deduction methods, and to compare the results of taking the standard deduction versus itemizing your deductions, to see which method causes the lowest overall tax liability. You may take the federal standard deduction, while this may reduce your federal tax liability, it may result in an increase to your Maryland income tax liability. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level. Should I take the standard deduction or itemize? - The federal tax reform of 2017 significantly raised the federal standard deduction. This means that high-income taxpayers are not required to reduce their itemized deductions using the itemized deduction worksheet used in prior years. Itemized Deduction Limitation - The State of Maryland follows the new federal tax law treatment to suspend the itemized deduction limitation threshold (Pease Limitation). Standard Deduction - The tax year 2021 standard deduction is a maximum value of $2,350 for single taxpayers and to $4,700 for head of household, a surviving spouse, and taxpayers filing jointly. The additional exemption of $1,000 remains the same for age and blindness.ĭependent Form 502B - will be required to be attached to Form 502, Form 505 and Form 515 to determine what exemptions you are entitled to claim. See Instruction 10 in the Resident tax booklet for the reduced amounts, or review the page, Determine Your Personal Income Tax Exemptions. The $3,200 exemption is phased out entirely when the income exceeds $150,000 ($200,000 for joint taxpayers). Personal Exemption Amount - The exemption amount of $3,200 begins to be phased out if your federal adjusted gross income is more than $100,000 ($150,000 for joint taxpayers). There have been no changes affecting personal exemptions on the Maryland returns.

Instructions for nonresidents who are required to file forms MW506NRS, MW506AE, MW506R and MW508NRS to determine and collect income tax withholding due on the sale of property located in Maryland and owned by nonresidents. Maryland's Withholding Requirements for Sales or Transfers of Real Property and Associated Personal Property by Nonresidents Instructions for filing fiduciary income tax returns. Instructions for filing personal income tax returns for nonresident individuals. Instructions for filing personal state and local income taxes for full- or part-year Maryland residents. Maryland State and Local Tax Forms and Instructions 2021 Individual Income Tax Instruction Booklets Booklet Note: For forms, visit the 2021 Individual Tax Forms pages.

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