Fill a Valid Maryland 505 Template

Fill a Valid Maryland 505 Template

The Maryland 505 form is the official income tax return for nonresidents of Maryland, designed for individuals who earned income in the state but reside elsewhere. This form allows taxpayers to report their income, claim exemptions, and calculate their tax liability. Understanding how to accurately complete the Maryland 505 form is essential for ensuring compliance and optimizing potential refunds.

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The Maryland Nonresident 505 Income Tax Return is a crucial document for individuals who earn income in Maryland but reside in another state. This form allows nonresidents to report their income, claim exemptions, and calculate their tax liability in a structured manner. It requires personal information such as Social Security numbers, addresses, and filing status, which helps determine the appropriate tax obligations. Taxpayers must provide details about their income sources, including wages, interest, dividends, and other earnings, as well as any adjustments to income. Additionally, the form outlines specific deductions and credits available to nonresidents, ensuring that taxpayers can accurately assess their financial responsibilities. Understanding the nuances of this form can significantly impact one's tax outcome, making it essential for nonresidents to approach it with care and attention.

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FORM MARYLAND NONRESIDENT 505 INCOME TAX RETURN

OR FISCAL YEAR BEGINNING

2005, ENDING

2005

$

SOCIAL SECURITY #

 

SPOUSE’S SOCIAL SECURITY #

 

 

 

 

Your First Name

Initial

Last Name

 

 

 

 

 

Spouse’s First Name

Initial

Last Name

 

 

 

 

 

PRESENT ADDRESS (No. and street)

 

 

 

 

 

 

 

City or Town

 

State

Zip Code

 

 

 

 

 

YOUR FILING STATUSSee Instruction 4 to determine if you are required to file.

 

EXEMPTIONS — See Instruction 10

 

 

 

 

 

 

Exemption Amount

 

 

1. Single (If you can be claimed on another person’s tax return, use Filing Status 6)

 

(A) Yourself

Spouse

 

 

Enter No.

(A)

 

× $2,400

$ ______________

 

 

 

 

 

Checked

 

 

 

2. Married filing joint return or spouse had no income

 

Check here if you are:

Spouse is:

 

 

 

 

 

 

 

 

 

 

 

(B)

Enter No.

(B)

 

× $1,000

$ ______________

 

3. Married filing separately

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65 or over

Blind

65 or over

Blind

Checked

 

 

 

 

 

 

 

4. Head of household

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SPOUSE’S SOCIAL SECURITY NUMBER

 

 

 

 

 

 

 

 

 

Enter

 

 

 

× $2,400

$ ______________

 

 

 

 

(C) Dependent Children:

 

 

(C)

 

 

 

5. Qualifying widow(er) with dependent child

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Name(s)

 

 

 

 

 

 

Social Security number(s)

 

 

 

6. Dependent taxpayer (Enter 0 in Exemption Box (A)—See Instruction 8 )

 

 

 

 

 

 

 

 

 

 

 

________________________________ __ __ __-__ __-__ __ __ __

 

 

RESIDENCE INFORMATIONSee Instruction 9

 

 

 

 

________________________________ __ __ __-__ __-__ __ __ __

 

 

Enter your state of legal residence.

Were you a resident for the entire year of 2005?

 

________________________________ __ __ __-__ __-__ __ __ __

 

_____________________________

Yes No

If no, attach explanation.

 

(D) Other Dependents:

Enter

 

 

Enter

 

Enter

(D)

 

× $2,400

$ ______________

 

 

 

 

 

 

 

 

 

 

No.

 

 

No.

 

Total

 

 

 

Are you or your spouse a member of the military? Yes

No

 

 

 

 

 

 

 

 

Regular

65 or over

 

 

 

 

 

 

 

Did you file a Maryland income tax return for 2004?

Yes

No

 

Name(s) and Relationship(s)

 

 

Social Security number(s)

 

 

 

 

________________________________ __ __ __-__ __-__ __ __ __

 

 

If “Yes,” was it a Resident or a Nonresident return?

 

 

 

 

 

 

 

 

 

 

________________________________ __ __ __-__ __-__ __ __ __

 

 

Advise dates you resided within Maryland for 2005. If none, enter “NONE.”

 

 

 

 

(E) Enter Total Exemptions

 

 

▶ (E)

 

 

Total

 

 

 

FROM _____________________

TO _____________________

 

 

 

 

 

$ _____________

 

 

 

(Add A, B, C and D)

 

 

 

 

 

 

Amount

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See Instruction 4 if you’re filing for Maryland taxes withheld in error.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FEDERAL

 

MARYLAND

NON-MARYLAND

 

 

INCOME AND ADJUSTMENTS INFORMATION (See Instruction 11)

 

INCOME (LOSS)

 

INCOME (LOSS)

INCOME (LOSS)

 

 

 

1.

Wages, salaries, tips, etc

 

1

 

 

 

 

. .

 

 

 

 

 

2.

Taxable interest income

 

2

 

 

 

 

. .

 

 

 

 

 

3.

Dividend income

 

3

 

 

 

 

. .

 

 

 

 

 

4.

Taxable refunds, credits or offsets of state and local income taxes . . . .

 

4

 

 

 

 

. .

 

 

 

wageyouroftop

staple.ONE

5.

Alimony received

 

5

 

 

 

 

. .

 

 

 

 

 

6.

Business income or (loss)

 

6

 

 

 

 

. .

 

 

 

 

 

7.

Capital gain or (loss)

 

7

 

 

 

 

. .

 

 

 

 

 

8.

Other gains or (losses) (from federal Form 4797)

 

8

 

 

 

 

. .

 

 

 

 

 

9.

Taxable amount of pensions, IRA distributions, and annuities

 

9

 

 

 

 

. .

 

 

 

ORDERMONEYorCHECKyourPlaceon

hereattachandstatementstaxandwith

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

 

 

 

 

. .

 

 

 

 

 

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 12)

 

 

Dollars

Cents

 

 

 

 

 

 

 

 

18.

Non-Maryland loss

 

 

18

 

 

 

. . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

 

 

 

 

19.

Other (Enter code letter(s) from Instruction 12)

 

 

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 13)

 

 

 

 

 

 

 

22

22.

Non-Maryland income

 

 

 

 

 

23

23.

Other (Enter code letter(s) from Instruction 13)

 

 

 

 

24

24.

Total subtractions (Add lines 22 and 23)

 

 

25.

Maryland adjusted gross income (Subtract line 24 from line 21)

 

25

DEDUCTION METHOD (All taxpayers must select one method and check the appropriate box)

26a

STANDARD DEDUCTION METHOD See Instruction 15 and worksheet. Enter amount on line 26a

ITEMIZED DEDUCTION METHOD Complete lines 26b, c and d

26b

Total federal itemized deductions (from line 28 federal Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26c

State and local income taxes included in federal Schedule A, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26d

Net itemized deductions (Subtract line 26c from line 26b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

26. Deduction amount (Multiply lines 26a or 26d by the MD income factor) 26e.

(from worksheet in Instruction 14 ) . . .

 

 

 

 

COM/RAD-022 05-49

26

FORM

MARYLAND NONRESIDENT

505

INCOME TAX RETURN

 

2005

 

 

 

Name ___________________________________________ SS# ____________________________________________

27.

Net income (Subtract line 26 from line 25)

28.

Total exemption amount (from EXEMPTIONS area, page 1) See Instruction 10

29.

Enter your Maryland income factor (from worksheet in Instruction 14)

30.

Maryland exemption allowance (Multiply line 28 by line 29)

31.

Taxable net income (Subtract line 30 from line 27) Figure tax on this amount

MARYLAND TAX COMPUTATION

32a. Maryland tax (from Tax Table or Computation Worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32b. Special nonresident tax. Multiply line 31 by .0125 (1.25%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

32c. Total Maryland tax. (Add lines 32a and 32b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33.

Earned income credit from worksheet in Instruction 20

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

34.

Poverty level credit from worksheet in Instruction 20

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

35.

Other income tax credits for individuals from Part G, line 8 of Form 502CR. (Attach Form 502CR)

 

 

 

 

 

 

36.

Business tax credits (Attach Form 500CR)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

37.

Total credits (Add lines 33 through 36)

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

38.

Maryland tax after credits (Subtract line 37 from line 32c) If less than 0, enter 0. . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39.

Contribution to Chesapeake Bay and Endangered Species Fund (See Instruction 21)

 

 

 

 

 

 

 

 

 

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

40.

Contribution to Fair Campaign Financing Fund (See Instruction 21)

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

41.

Contribution to Maryland Cancer Fund (See Instruction 21)

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

42.

Total Maryland income tax and contributions (Add lines 38 through 41)

 

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43.

Total Maryland tax withheld (Enter total from and attach your W-2 and 1099 forms if MD tax is withheld)

 

 

 

 

. .

 

 

44.

2005 estimated tax payments, amount applied from 2004 return and payment made with an extension request Form 502E

 

 

 

 

 

 

. .

 

 

45.

Refundable earned income credit from worksheet in Instruction 20

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

46.

Nonresident tax paid by pass-through entities (Attach Schedule K-1 or other statement)

 

 

 

 

 

 

47.

Refundable income tax credits from Part H, line 5 of Form 502CR (Attach Form 502CR. See Instruction 22)

 

. .

 

 

48.

Total payments and credits (Add lines 43 through 47)

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

49.

Balance due (If line 42 is more than line 48, subtract line 48 from line 42)

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

50.

Overpayment (If line 42 is less than line 48, subtract line 42 from line 48)

 

 

 

 

 

 

 

 

 

 

 

 

 

.

. . .

. . . . .

. . .

. .

. . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . .

 

. .

 

 

51.

Amount of overpayment TO BE APPLIED TO 2006 ESTIMATED TAX

 

 

 

51

 

 

 

 

 

 

 

 

 

.

. . . .

.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

52.

Amount of overpayment TO BE REFUNDED TO YOU (Subtract line 51 from line 50)

REFUND

 

 

 

 

 

 

 

53.

Interest charges from Form 502UP

 

 

or for late filing

 

 

 

 

 

 

 

(See Instruction 23) Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

54.

TOTAL AMOUNT DUE (Add line 49 and line 53)

IF $1 OR MORE, PAY IN FULL WITH THIS RETURN.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For credit card payment check here

 

 

and see Instruction 25. Direct debit is available only if you file electronically.

 

 

 

 

 

 

DollarsCents

27

28

29

30

31

32a

32b

32c

33

34

35

36

37

38

39

40

41

42

43

44

45

46

47

48

49

50

52

53

54

DIRECT DEPOSIT OF REFUND (See Instruction 23) Please be sure the account information is correct.

55. To choose the direct deposit option, complete the following information:

55a. Type of account:

Checking

Savings

55b. Routing number

55c. Account number

-

-

-

-

Daytime telephone no.

Home telephone no.

CODE NUMBERS (3 digits per box)

 

 

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and

Make checks payable to: COMPTROLLER OF MARYLAND.

statements and to the best of my knowledge and belief it is true, correct and complete. If prepared by a person

It is recommended that you include your social security no. on

other than taxpayer, the declaration is based on all information of which the preparer has any knowledge. Check

check using blue or black ink. Mail to: Comptroller of Maryland,

here

 

if you authorize your preparer to discuss this return with us.

Revenue Administration Division, Annapolis, Maryland 21411-0001

 

 

 

 

 

Your signature

Date

Preparer’s SSN or PTIN

Signature of preparer other than taxpayer

Spouse’s signature

Date

Address and telephone number of preparer

COM/RAD-022 05-49

Misconceptions

  • Misconception 1: The Maryland 505 form is only for residents of Maryland.
  • This form is specifically designed for nonresidents who earn income in Maryland. Nonresidents must file this form to report their Maryland-source income.

  • Misconception 2: You do not need to file if you earned less than a certain amount.
  • Misconception 3: You can only claim exemptions for yourself and your spouse.
  • In addition to yourself and your spouse, you can also claim exemptions for dependent children and other qualifying dependents.

  • Misconception 4: The Maryland 505 form is the same as the federal tax return.
  • The Maryland 505 form is specifically for state income tax and has different requirements and calculations than your federal tax return.

  • Misconception 5: Filing the Maryland 505 form is optional for nonresidents.
  • If you have Maryland-source income, filing the Maryland 505 form is mandatory, even for nonresidents.

  • Misconception 6: You cannot get a refund if you file the Maryland 505 form.
  • You can receive a refund if you overpaid your Maryland taxes, just like with any tax return.

  • Misconception 7: The form is too complicated to fill out without professional help.
  • While the form requires attention to detail, many individuals can complete it on their own by following the provided instructions.

  • Misconception 8: You cannot file electronically.
  • The Maryland 505 form can be filed electronically, which may simplify the process and speed up any potential refunds.

  • Misconception 9: All nonresidents pay the same tax rate.
  • Nonresidents may be subject to different tax rates based on their income and specific circumstances, which can affect their overall tax liability.

  • Misconception 10: You must pay taxes on all income earned while in Maryland.
  • Only income sourced from Maryland is taxable. Nonresidents should carefully review what qualifies as Maryland-source income.

Common mistakes

Filling out the Maryland 505 form can be a straightforward process, but many make common mistakes that can lead to delays or issues with their tax return. One frequent error is not including the correct Social Security numbers for both the taxpayer and spouse. Each number must be accurate and match the information on file with the Social Security Administration. A simple typo can result in a rejection of the return.

Another common mistake involves the filing status. Taxpayers sometimes select the wrong status based on their circumstances. For example, individuals who are married but choose "Single" can face penalties. It’s crucial to review the instructions carefully to determine the correct status.

Many people overlook the section on exemptions. Failing to claim all eligible exemptions can lead to a higher tax liability. Taxpayers should ensure they account for themselves, their spouse, and any dependents. Each exemption can significantly impact the overall tax calculation.

Inaccuracies in reporting income are also prevalent. Taxpayers sometimes forget to include all sources of income or misreport figures. Each income category must be filled out correctly, and all relevant documents should be referenced to ensure completeness.

Another mistake involves the adjusted gross income. Taxpayers may miscalculate their adjusted gross income by not properly accounting for adjustments. This figure is crucial as it affects deductions and tax liability.

Some filers neglect to choose a detection method. The Maryland 505 form requires taxpayers to select either the standard deduction or itemized deductions. Not making this selection can lead to confusion and potential errors in calculating tax owed.

Additionally, many individuals fail to report credits accurately. Tax credits can significantly reduce tax liability, but if not claimed correctly, taxpayers may miss out on valuable savings. It’s important to review eligibility for various credits and ensure they are included in the return.

Lastly, not signing the return is a common oversight. Both the taxpayer and spouse must sign and date the form. A missing signature can delay processing and potentially lead to penalties. Always double-check that all necessary signatures are present before submission.

Key takeaways

  • The Maryland 505 form is specifically designed for nonresidents filing an income tax return for the state of Maryland.
  • Accurate completion of personal information, including social security numbers and addresses, is crucial for processing.
  • Filing status must be selected carefully, as it impacts tax calculations and exemptions.
  • Exemptions can significantly reduce taxable income; ensure you include all eligible exemptions.
  • Income must be reported from various sources, including wages, interest, and dividends, as outlined in the form.
  • Tax credits and deductions should be claimed where applicable to lower your overall tax liability.
  • Ensure to check the form for accuracy before submission to avoid delays in processing.
  • Consider using direct deposit for refunds, as it is a faster and more secure option.

Documents used along the form

The Maryland Nonresident 505 Income Tax Return is an essential document for individuals who earn income in Maryland but reside in another state. When filing this form, there are several other documents and forms that may be required to ensure a complete and accurate tax return. Here’s a brief overview of some of these related documents:

  • Form 502CR: This is the Maryland Income Tax Credit form. It allows taxpayers to claim various credits that can reduce their tax liability. Attach this form if you are claiming any credits.
  • Form 500CR: This is the Business Tax Credit form. If you own a business and are eligible for specific credits, this form must be completed and submitted alongside your tax return.
  • Prenuptial Agreement Form: For those approaching marriage, the helpful prenuptial agreement form resources provide essential guidance on establishing financial arrangements beforehand.
  • Schedule K-1: If you receive income from a pass-through entity, such as a partnership or S corporation, this schedule reports your share of the income, deductions, and credits. It’s crucial for accurately reporting your income on the 505 form.
  • W-2 Forms: These forms are provided by your employer and detail your earnings and the taxes withheld during the year. If Maryland taxes were withheld, include these forms with your return.
  • Form 502E: This is the Application for Extension of Time to File. If you need more time to file your return, this form must be submitted to avoid penalties.
  • Form 4797: This form is used to report the sale of business property. If applicable, it helps determine any gains or losses that should be reported on your Maryland tax return.

Gathering these documents ahead of time can streamline the filing process and help ensure that you meet all requirements. By being organized and informed, you can navigate your tax responsibilities with confidence.

Similar forms

The Maryland Nonresident 505 Income Tax Return form is similar to the IRS Form 1040-NR, which is used by nonresident aliens to report their income to the federal government. Both forms require individuals to disclose their income earned within the respective jurisdictions, as well as any deductions or credits they may be eligible for. While the Maryland 505 focuses on state-specific tax regulations, the 1040-NR serves as the federal counterpart, ensuring that nonresidents fulfill their tax obligations at both levels. Each form also includes sections for personal information, filing status, and exemptions, making them essential for accurate tax reporting.

Another document akin to the Maryland 505 is the Virginia Nonresident Individual Income Tax Return (Form 763). This form is utilized by nonresidents earning income in Virginia, similar to how the Maryland 505 is used for Maryland income. Both forms require the reporting of income earned in the respective states and allow for the calculation of tax liabilities. Additionally, they provide sections for exemptions and deductions, ensuring that nonresidents can accurately determine their tax obligations based on their specific circumstances.

Understanding the importance of proper documentation extends beyond tax forms; for instance, individuals engaging in firearm transactions should also be aware of the necessary paperwork to ensure legality and accountability. The Louisiana Firearm Bill of Sale form serves this purpose by formalizing the transfer of ownership, making it vital for both parties involved in the exchange. To learn more about this essential document, you can refer to the Bill of Sale for a Gun, which outlines the specific requirements and implications of the sale process.

The Pennsylvania Non-Resident Income Tax Return (Form REV-1832) shares similarities with the Maryland 505 form as well. Nonresidents who earn income in Pennsylvania must use this form to report their earnings and calculate their tax liability. Both forms require detailed information regarding income sources, deductions, and exemptions. Furthermore, they serve the purpose of ensuring compliance with state tax laws while allowing nonresidents to claim any applicable credits or deductions.

Lastly, the New York State Nonresident and Part-Year Resident Income Tax Return (Form IT-203) is comparable to the Maryland 505. Nonresidents who earn income in New York use this form to report their earnings and determine their tax responsibilities. Like the Maryland 505, the IT-203 includes sections for personal information, income sources, and deductions. Both forms aim to facilitate the accurate reporting of income for individuals who do not reside in the state but have earned income there, ensuring compliance with state tax regulations.