The Maryland 505X form is an amended tax return specifically for nonresidents who need to correct or update their previously filed Maryland tax returns. This form allows taxpayers to adjust income, deductions, and credits, ensuring compliance with state tax regulations. For those who need to make changes, filling out the 505X form is essential; click the button below to get started.
The Maryland 505X form is an essential document for nonresidents who need to amend their state tax returns. This form allows individuals who initially filed a Maryland tax return to correct errors or update their information, ensuring that their tax obligations are accurately reflected. It is specifically designed for those who earned income in Maryland but reside in another state, making it crucial for nonresident taxpayers. The form requires various personal details, including Social Security numbers, names, and addresses, to identify the taxpayer and their spouse, if applicable. Additionally, it includes sections for reporting income, deductions, and credits, which can significantly impact the final tax amount owed or refunded. Taxpayers must carefully follow the instructions provided to ensure compliance with Maryland tax laws, particularly when detailing any changes from the original return. This form also addresses specific situations, such as claiming a net operating loss or changes in filing status, which may further complicate the amendment process. Overall, understanding the Maryland 505X form is vital for nonresidents seeking to rectify their tax filings and avoid potential penalties.
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MARYLAND
NONRESIDENT
2022
FORM
AMENDED TAX
505X
RETURN
OR FISCAL YEAR BEGINNING
2022, ENDING
Your Social Security Number
Spouse's Social Security Number
Your First Name
MI
Your Last Name
Does your name match the name on your social security card? If not, to ensure you get credit for your
Spouse's First Name
personal exemptions, contact SSA at 1-800-772-1213 or visit www.ssa.gov.
Name of county and incorporated city, town or special taxing area
in which you were employed on the last day of the taxable period
Spouse's Last Name
if you earned wages in Maryland. (See Instruction 6.)
Current Mailing Address (PO Box, number, street and apt. no)
Maryland County
Current Mailing Address Line 2 (Apt No., Suite No., Floor No.)
City, Town or Taxing Area
City or Town
State
ZIP Code + 4
Foreign Country Name
Foreign Province/State/County
Foreign Postal Code
You must use Form 502X if you
IF THIS IS BEING FILED TO CLAIM A NET OPERATING LOSS, CHECK
STOP are changing to Resident status.
THE APPROPRIATE BOX:
CARRYBACK (farming loss only)
CARRY FORWARD
Check here if you are:
Check here if your spouse is:
IMPORTANT NOTE: Read the instructions and complete page 3 first.
65 or over
Blind
Attach copies of the federal loss year return and Form 1045, Schedules
A and B. See Instruction 13.
Is this address different from the address on your original return?
. . . . . . . . . . . . . . .
Enter your state of legal residence
. Enter the local jurisdiction of which you are a resident
.
Are you a resident of a local jurisdiction which imposes an income or earnings tax on Maryland residents?
Enter dates you resided in Maryland
-
Any changes from the original filing must be explained in Part III of this form.
Did you request an extension of time to file the original return?
If yes, enter the date the return was filed
Is an amended federal return being filed?. . .
. . . . . .
. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Has your original federal return been changed or corrected by the Internal Revenue Service? . . . . . . . . . . . . . . . . . . . . . . .
YES
YES YES
NO
NO NO
CHANGE OF FILING STATUS
Original Amended
Single
Married filing joint return or spouse had no income
Married filing separately
Head of household
Qualifying widow(er) with dependent child
Dependent taxpayer
Spouse's Social Security No.
MARYLAND NONRESIDENT
FORM AMENDED TAX 505X RETURN
Last Name
SSN
IMPORTANT NOTE: Read the instructions and
A. As originally reported or
B. Net change – increase
complete page 3 first.
as previously adjusted
or (-) decrease
(See instructions.)
explain on page 4.
1. Federal adjusted gross income . . . . . . . . . . . . . . . . . . 1.
2. Additions to income . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Total (Add lines 1 and 2.). . . . . . . . . . . . . . . . . . . . . . 3.
4. Subtractions from income . . . . . . . . . . . . . . . . . . . . . . 4.
5.Total Maryland adjusted gross income (Subtract line 4
from line 3.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.
6. CHECK ONLY ONE METHOD (See Instruction 5.)
STANDARD DEDUCTION METHOD
ITEMIZED DEDUCTION METHOD Enter total MD itemized deductions from Part II,
on page 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 7. Net income (Subtract line 6 from line 5.). . . . . . . . . . . 7.
8. Exemption amount (See Instruction 5.) . . . . . . . . . . . . 8.
9. Taxable net income (Subtract line 8 from line 7.) . . . . . 9.
10.Maryland tax from line 16 of revised
Form 505NR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11.Special Nonresident tax from line 17 of
revised Form 505NR
. . . . 11.
12.
Total Maryland tax (Add lines 10 and 11.)
. . . . 12.
12a.
Credits:
Poverty Level Credit
Personal Credit
Business Credit
X X X X X X X X X X
Enter total credits
. . . 12a.
12b.
Maryland tax after credits (Subtract line 12a
from line 12.) If less than 0, enter 0
. . . 12b.
13.Contribution: 13a. 13b. 13c.
13d.
Enter total contributions (See Instruction 8.) . . . . . . . 13.
14.Total Maryland income tax and contribution (Add lines
12b and 13.) . . . . . . . . . . . . .. . . . . . . . . . . . . . . . 14.
15. Total Maryland tax withheld. . . . . . . . . . . . . . . . . 15.
16.Estimated tax payments and payments made
with Form PV and Form MW506NRS . . . . . . . . . . . . . 16.
17. Nonresident tax paid by pass-through entities . . . . . . 17.
18.Refundable income tax credits
(Attach Form 502CR and/or 502S.) . . . . . . . . . . . . . 18.
19.Total payments and credits (Add lines 15
through 18.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.
20. Balance due (If line 14 is more than line 19, subtract line 19 from line 14.) . . . . . . . . . . . . . . . . . . . . . . . . . 20.
21. Overpayment (If line 14 is less than line 19, subtract line 14 from line 19.) . . . . . . . . . . . . . . . . . . . . . . . . . 21.
22.Tax paid with original return, plus additional tax paid after it was filed
(Do not include any interest or penalty.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22.
23. Prior overpayment (Total all refunds previously issued.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23.
24.REFUND (If line 20 is less than line 22, subtract line 20 from line 22) (If line 23 is less than
line 21, subtract line 23 from line 21.) (Add line 21 to line 22.) (See Instruction 10.) . . . . . . . . . . REFUND 24.
Page 2
C. Corrected amount.
Name
25.BALANCE DUE (If line 20 is more than line 22, subtract line 22 from line 20.) (Add line 20 to
line 23.) (If line 21 is less than line 23, subtract line 21 from line 23.) (See Instruction 10.) . . . . . . . . . . . . . 25.
26. Interest and/or penalty charges on tax due and/or from Form 502UP (See Instruction 11.) . . . . . . . . . . . . . . 26.
27. TOTAL AMOUNT DUE (Add line 25 and line 26.) . . . . . . . . . . . . . . . . .PAY IN FULL WITH THIS RETURN 27.
Page 3
I. INCOME AND ADJUSTMENTS TO INCOME: You must complete the following using the amounts from your federal income tax return including any supporting schedules. If there are no changes to the amounts claimed on your original Maryland return, check here and complete Column A and line 17 of Column C.
INCOME AND ADJUSTMENTS INFORMATION
(See Instruction 4.) (Use a minus sign ( - ) to indicate a loss.)
1.
Wages, salaries, tips, etc
2.
Taxable interest income
3.
Dividend income
4.Taxable refunds, credits or offsets of state and local
income taxes
4.
5.
Alimony received
6.
Business income or loss
7.
Capital gain or loss
8.
Other gains or losses (from federal Form 4797)
9.Taxable amount of pensions, IRA distributions,
and annuities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.
10.Rents, royalties, partnerships, estates, trusts, etc. (Circle
appropriate item.) . . . . . . . . . . . . . . . . . . . . . . . . . . 10.
11. Farm income or loss. . . . . . . . . . . . . . . . . . . . . . . . . 11.
12. Unemployment compensation . . . . . . . . . . . . . . . . . . 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.) (Carry
the amount from line 17, column A, to page 1, line 1, column C.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.
A. Federal income
B. Maryland income
C. Non-Maryland income
or loss ( - ) as corrected
II.ITEMIZED DEDUCTIONS: If you itemized deductions on your Maryland return, you must complete the following. If there are no changes to the
amounts claimed on your original Maryland return, check here and complete Column A and line 11 of Column C.
A. As originally reported
B. Net increase
C. Corrected amount
or as previously adjusted
or decrease ( - )
1. Medical and dental expense . . . . . . . . . . . . . . . . . . . . 1.
2.Taxes.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.
3. Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.
4. Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.
5. Casualty or theft losses. . . . . . . . . . . . . . . . . . . . . . . 5.
6. Miscellaneous . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.
7.Enter total itemized deductions from federal Schedule A 7.
8.Enter state and local income taxes included on
line 2 or from worksheet (See Instruction 4.) . . . . . . . 8.
9. Net deductions (Subtract line 8 from line 7.). . . . . . . . 9.
10.AGI factor (See Instruction 14 of the
nonresident instructions.) . . . . . . . . . . . . . . . . . . . . 10.
Page 4
11.Total Maryland deductions (Multiply line 9 by line 10.) (Enter on page 2, in each appropriate column of line 6.) 11.
III.EXPLANATION OF CHANGES TO INCOME, DEDUCTIONS AND CREDITS: Enter the line number from page 1 and 2 for each item you are changing and give the reason for each change. Attach any required supporting forms and schedules for items changed.
Check here
if you authorize your preparer to discuss this return with us.
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief it is true, correct and complete. If prepared by a person other than taxpayer, the declaration is based on all information of which the preparer has any knowledge.
Your signature
Date
Spouse’s signature
Taxpayer(s)' Daytime telephone no.
Printed name of the Preparer/Firm's name
Signature of preparer other than taxpayer (Required by Law)
Street address of preparer or Firm's address
City, State, ZIP Code + 4
Telephone number of preparer
Preparer’s PTIN (Required by Law)
Make checks payable to and mail to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411-0001
It is recommended that you include your Social Security Number on check in blue or black ink.
To make an online payment, scan the QR code below and follow instructions.
AMENDED TAX RETURN
INSTRUCTIONS
You must file your Amended Form 505X electronically to claim, or change information related to, business income tax credits from Form 500CR.
Changes made as part of an amended return are subject to audit for up to three years from the date that the amended return is filed.
WHEN AND WHERE TO FILE
Generally, Form 505X must be filed within three years from the date the original return was due (including extensions) or filed. The following exceptions apply.
•A claim filed after three years, but within two years from the time the tax was paid is limited to the amount paid within the two years immediately before filing the claim.
•A claim for refund based on a federal net operating loss carryback must be filed within 3 years after the due date (including extensions) of the return for the tax year of the net operating loss.
•If the claim for refund or credit for overpayment resulted from a final determination made by an administrative board or an appeal of a decision of an administrative board, that is more than three years from the date of filing the return or more than two years from the time the tax was paid, the claim for refund must be filed within one year of the date of the final decision of the administrative board or final decision of the highest court to which an appeal of the administrative board is taken.
•If the Internal Revenue Service issues a final determination of adjustments that would result in a decrease to Maryland taxable income, file an amended return within one year after the final adjustment report or the final court decision if appealed.
•If the Internal Revenue Service issued a final determination of adjustments that would result in an increase to Maryland taxable income, file the amended return within ninety days after the final determination.
Do not file an amended return until sufficient time has passed to allow the original return to be processed. For current year returns, allow at least six weeks. Note that no refund for less than $1.00 will be issued.
The amended return must be filed with the
For more information regarding refund limitations, see Administrative Release 20.
PROTECTIVE CLAIMS
A protective claim is a claim for a specific amount of refund filed on an amended return with a request that the Comptroller delay acting on the refund request. The claim for refund may not be based on a federal audit. The delay requested must be due to a pending decision by a state or federal court which will affect the outcome of the refund, or for reasonable cause. The protective claim must be filed in accordance with the limitations outlined in the section WHEN AND WHERE TO FILE. The Comptroller may accept or reject a protective claim. If rejected, the taxpayer will be informed of a right to a hearing. We cannot accept a protective claim unless an original return has been filed.
PENALTIES
There are severe penalties for failing to file a tax return, failing to pay any tax when due, filing false or fraudulent returns 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 when due.
Page 1
To collect unpaid taxes, the Comptroller is directed to enter liens against the salary, wages or property of delinquent taxpayers.
PRIVACY ACT INFORMATION
The Revenue Administration Division requests information on tax returns to administer the income tax laws of Maryland, including determination and collection of correct taxes. If you fail to provide all or part of the requested information, the exemptions, exclusions, credits, deductions or adjustments may be dis- allowed and you may owe more tax. In addition, the law provides penalties for failing to supply information required by law or regulations.
You may look at any records held by the Revenue Administration Division which contain personal information about you. You may inspect such records, and you have certain rights to amend or correct them.
As authorized by law, information furnished to the Revenue Administration Division may be given to the Internal Revenue Service, a proper official of any state that exchanges tax information with Maryland and to an officer of this state having a right to the information in that officer’s official capacity. The information also may be obtained with a proper legislative or judicial order.
USE OF FEDERAL RETURN
Most changes to your federal return will result in changes on your Maryland return and you will need the information from your federal amendment to complete your Maryland amended return. Therefore, complete your federal return first. Maryland law requires that your income and deductions be entered on your Maryland return exactly as they were reported on your federal return and schedules. However, all items reported on your Maryland return are subject to verification, audit and revision by the Comptroller’s Office.
If you are amending your federal return, attach a photocopy of the federal Form 1040X and any revised schedules to your Maryland Form 505X. If your tax has been increased by the Internal Revenue Service, you must report this increase to the Revenue Administration Division within 90 days from the final IRS determination.
1NAME AND ADDRESS INFORMATION.
Enter the Social Security number, correct name and cur- rent address on the lines. Be sure to check the appropriate box if you or your spouse are 65 or over or blind on the last day of the tax year. If your address is different from the address on your original return, be sure to answer “Yes” to the first question.
If using a foreign address, complete the lines indicated for Country Name, Province/State/County, and Postal Code.
2QUESTIONS.
Answer all of the questions and attach copies of any fed- eral notices, amended forms and schedules. If filing your amended return for a Net Operating Loss Carryback or Carryforward, check the appropriate box. Provide the dates you resided in Maryland for the tax year and explain any changes from your original filing in Part III of Form 505X.
3FILING STATUS.
Enter the filing status you used on your original return and show any change of filing status. Your filing status should
correspond to the filing status used on your federal return.
Generally, you may not change from married filing joint to mar- ried filing separately after the original due date of the return. Any change in filing status to or from married filing joint requires the
LINE 6 – Method of computation.
Standard deduction method. The standard deduction is 15% of the Maryland adjusted gross income with the following mini- mums and maximums.
signature of both spouses. Enter a complete explanation in Part III of Form 505X.
4COMPLETE PAGES 3 AND 4 OF FORM 505X.
PART I
Enter the amount of income (or loss) from your federal return as corrected in Column A. Enter the amount of your Maryland income (or loss) as corrected in Column B. Enter the amount of your non-Maryland income (or loss) as corrected in Column C.
PART II
Filing Status
Married filing joint or spouse had no income
–Minimum of $1,600 and maximum of $2,400
–Minimum of $3,200 and maximum of $4,850
If you itemized deductions, enter your original or previously adjusted amounts in Column A. Enter any increase (or decrease) in Column B and enter the corrected amounts in Column C.
Any amount deducted as contributions of Preservation and Conservation Easements for which a credit is claimed on Form 502CR must be included on line 8. On line 10, enter the adjusted gross income factor from the worksheet in Instruction 5.
PART III
Use this section to provide a detailed explanation of the changes being made on the amended return. A filing status change must be fully explained here.
Enter the line number from pages 1 and 2 for each item you are changing and state the reason for the change. Be sure to attach revised Form 505NR and any other required schedules or forms.
NOW COMPLETE PAGES 1 AND 2 OF FORM 505X.
COLUMNS A-C
In Column A, enter the amounts from your return as originally filed or as previously adjusted or amended.
In Column B, enter the net increase or net decrease for each line you are changing. Use a minus sign ( - ) to indicate a decrease. Explain each change in Part III of Form 505X and attach any related schedule or form. If you need more space, show the required information on an attached statement. For Column C, add the increase in Column B to the amount in Column A, or subtract the Column B decrease from Column A. For any item you do not change, enter the amount from Column A in Column C.
5FIGURE YOUR MARYLAND AND SPECIAL NONRESIDENT TAX.
LINE 1 – Income and adjustments from federal return. Copy the amounts from your federal amended return or as cor- rected by the IRS. Be sure to reconcile this figure to Part 1 of Form 505X and enter a complete explanation of the changes in Part III.
LINE 2 – Additions to income. For decoupling and tax prefer- ence items and amounts to be added when credits are claimed, include corrected Form(s) 500DM, 502TP, 502CR or 500CR. In addition, enter the amount equal to a tax credit claimed for tax paid on distributive or pro-rata share of income by pass-through entity (see Line 9, Part CC, Form 502CR.). Enter an explanation of the changes in Part III.
LINE 4 – Subtractions from income. Enter items such as child care expenses and any other subtractions as shown in the 2022 Nonresident Income Tax Return Instructions. Enter an explana- tion of the changes in Part III and attach any corrected forms.
Itemized deduction method. Check the box and enter your total Maryland itemized deductions.
LINE 8 – Exemptions. The personal exemption is $3,200. This exemption amount is reduced once the taxpayer's federal adjust- ed gross income exceeds $100,000. ($150,000 if filing Joint, Head of Household or Qualifying Widow(er) with Dependent Child). If you are subject to this reduction, see the exemption chart in the 2022 Nonresident Income Tax Return Instructions. Taxpayers 65 years or over or blind get an additional exemption of $1,000.
Multiply the exemption amount by the AGI factor in the ADJUSTED GROSS INCOME FACTOR WORKSHEET to calculate the amount of the exemption to enter in column C. Use the exemption amount that you had claimed on your original return (or as previously adjusted) in Column A of line 8. The difference between these two figures should be entered in Column B of line 8.
Attach amended Form 502B if you are changing dependent infor- mation.
Adjusted Gross Income (AGI) Factor. You must adjust your standard or itemized deductions and exemptions using the AGI factor calculated in the worksheet below. Carry this amount to six decimal places. NOTE: If Mary- land adjusted gross income before subtractions (line 2) is 0 or less, use 0 as your factor. If your federal adjusted gross income (line 1) is 0 or less and line 2 is greater than 0, use 1 as your factor.
ADJUSTED GROSS INCOME FACTOR WORKSHEET (5)
1.Enter your federal adjusted gross
income (from line 17, column 1) . . . . .1 _____________
2.Enter your Maryland adjusted gross income before subtraction of
non-Maryland income (from line 25) . .2 _____________
3. AGI factor. Divide line 2 by line 1 . . . .3 .
LINE 10 – Computing the tax. Complete Form 505NR follow- ing the instructions in the nonresident booklet using corrected figures to determine the tax. Line 16 of the revised Form 505NR is entered on line 10 of Form 505X. Line 17 of the revised Form 505NR is entered on line 11 of Form 505X.
6POVERTY LEVEL CREDIT, CREDITS FOR INDIVIDUALS AND BUSINESS TAX CREDITS.
Enter each credit being claimed on the appropriate line on line 12a.
You may claim a credit on line 12a equal to 5% of your earned income. If your income is less than the poverty level guidelines, refer to the nonresident instructions and worksheet to compute the allowable credit. You must prorate the poverty level credit using the Maryland income factor.
Personal income tax credits from Form 502CR and business tax credits from Form 500CR should be entered in the appropriate field on line 12a. If these amounts are different from the original return, be sure to attach the completed Form 502CR and/or Form 500CR with appropriate documentation or certifications.
If the total credits on line 12a are greater than the tax on line 12, enter zero on line 12b. The credits entered on line 12a are nonrefundable. For information concerning refundable credits, see Instruction 9.
You must file your amended return electronically to claim a business tax credit from Form 500CR.
7SPECIAL NONRESIDENT INCOME TAX.
The special nonresident tax is calculated on line 17 of revised Form 505NR.
8CONTRIBUTIONS TO THE CHESAPEAKE BAY AND ENDANGERED SPECIES FUND, DEVELOPMENTAL DISABILITIES SERVICES AND SUPPORT FUND, MARYLAND CANCER FUND AND FAIR CAMPAIGN FINANCING FUND.
Enter the amounts of your contribution in 13a for the Chesapeake Bay and Endangered Species Fund, 13b for the Developmental Disabilities Services and Support Fund, 13c for the Maryland Cancer Fund and 13d for the Fair Campaign Financing Fund. Any contribution will increase your balance due or reduce your refund. Enter the total of your contributions in the appropriate columns. Additional information concerning the funds is con- tained in the Maryland tax instructions for the tax year of the amended return.
9TAXES PAID AND CREDITS.
Write your taxes paid and credits on lines 15-19.
Enter the correct amounts on lines 15 through 18 and attach any additional or corrected W-2 statements, photocopies of cancelled checks or money orders for estimated account payments not credited on your original return. Attach corrected Form 502CR and other state returns, and/or Form 502S.
Refundable Income Tax Credits. Enter the total of your refundable income tax credits on line 18. Attach Form 502CR and/or 502S.
1.STUDENT LOAN DEBT RELIEF TAX CREDIT. If you have incurred at least $20,000 in undergraduate or graduate stu- dent loan debt, you may qualify for this credit. A copy of the required certification from the Maryland Higher Education Commission must be included with Form 502CR.
2.HERITAGE STRUCTURE REHABILITATION TAX CREDIT. A credit is allowed for a percentage of qualified rehabilitation expenditures as certified by the Maryland Historical Trust. Attach a copy of Form 502S and certification.
3.REFUNDABLE BUSINESS INCOME TAX CREDIT. Form 500CR Instructions are available online at www.maryland- taxes.gov. You must file Form 500CR electronically to claim a business income tax credit.
4.IRC SECTION 1341 REPAYMENT. If you repaid an amount this year reported as income on a prior year federal tax return that was greater than $3,000, you may be eligible for an IRC Section 1341 repayment credit. See Administrative Release 40.
5.CATALYTIC REVITALIZATION PROJECTS AND HISTORIC REVITALIZATION TAX CREDIT. If you are an individual, business entity, or nonprofit organization, you may claim a tax credit in an amount equal to 20% of the amount stated in the final tax credit certificate issued by the Secretary of this sub- title for 5 consecutive taxable years beginning with the Catalytic Revitalization Projects is completed. See Form 502CR instructions.
6.FLOW-THROUGH NONRESIDENT PTE TAX If you are the beneficiary of a trust, or a member of a PTE, for which PTE tax was paid, you may be entitled to a share of that tax. See Form 502CR Instructions.
7.CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES If your Maryland credit for child and dependent care expenses exceeds your Maryland Tax, you may qualify for this credit.
9.PTE TAX PAID ON MEMBERS’ DISTRIBUTIVE OR PRO RATA SHARES OF INCOME TAX CREDIT If you are the ben- eficiary of a trust or a Qualified Subchapter S Trust which elected to pay the tax imposed with respect to members’ dis- tributive or pro rata shares, you may be entitled to a credit for your share of that tax. Enter the amount on this line and attach the Maryland Schedule K-1 (504) for the trust.
If you are a member of a PTE (pass-through entity) which elected to pay the tax imposed with respect to members’ dis- tributive or pro rata shares, you may be entitled to a credit for your share of that tax paid. Enter the amount on this line and attach Maryland Schedule K-1 (Form 510/511) issued to you.
10 BALANCE DUE OR OVERPAYMENT.
Calculate the balance due or overpayment by subtracting the total on line 19 from the amount on line 14 and enter the result on either line 20 or line 21.
Enter the tax paid with the original return plus any additional tax paid after filing on line 22 (do not enter interest or penalty paid) OR enter the overpayment from your original return plus any additional overpayments from prior amendments or adjustments on line 23.
If there is an amount on line 20:
•and line 20 is more than line 22, you owe additional tax. Enter the difference on line 25 and compute the interest due using the interest rates in Instruction 11.
2022 Tax Rate Schedules
Tax Rate Schedule I
Tax Rate Schedule II
For taxpayers filing as Single, Married Filing Separately, or as
For taxpayers filing Joint, Head of Household, or for Qualifying
Dependent Taxpayers. This rate is also used for taxpayers filing as
Widows/Widowers.
Fiduciaries.
If taxable net income is:
Maryland Tax is:
At least:
but not over:
$0
$1,000
2.00% of taxable net income
2.00%
of taxable net income
$2,000
$20.00
plus
3.00%
of excess over $1,000
$3,000
$50.00
4.00%
of excess over $2,000
$150,000
$90.00
4.75%
of excess over $3,000
$100,000
$175,000
$7,072.50
5.00%
of excess over $150,000
$125,000
$4,697.50
of excess over $100,000
$225,000
$8,322.50
5.25%
of excess over $175,000
$5,947.50
of excess over $125,000
$300,000
$10,947.50
5.50%
of excess over $225,000
$250,000
$7,260.00
$15,072.50
5.75%
of excess over $300,000
$12,760.00
of excess over $250,000
•and there is also an amount on line 23, you owe additional tax. Add the two together and enter the total on line 25. Compute the interest due. See Instruction 11.
•and line 20 is less than line 22, you are due a refund. Enter the difference on line 24.
If there is an amount on line 21:
•and line 21 is more than line 23, you are due an additional refund. Enter the difference on line 24.
•and there is also an amount on line 22, you are due an addi- tional refund. Add the two together and enter on line 24.
•and line 21 is less than line 23, you owe additional tax. Enter the difference on line 25 and compute the interest due using the interest rates in Instruction 11.
Previous interest and penalty
Interest and/or penalty charges for the year you are amending, whether previously paid or still outstanding, may be adjusted as a result of your amendment. Any payments made on the account have been applied first to penalty, then to interest and lastly to tax due. These payments may require reallocation depending on the result of the amendment. We will notify you of the net bal- ance due or refund when we have completed processing your Form 505X.
NOTE: If all or part of the overpayment on your original return was credited to an estimated tax account for next year, we can- not reduce or remove this credit without specific authorization from you. If you have a balance due, and wish to apply monies credited to a 2023 estimated tax account, attach written autho- rization for the amount to be removed. Interest charges are assessed even if the balance due is removed from the 2023 account.
11 INTEREST ON TAX DUE AND INTEREST FOR
UNDERPAYMENT OF ESTIMATED TAX.
INTEREST ON TAX DUE
Interest must be computed and paid on any balance of tax due. Interest is due from the date the return originally was due to be filed until the date the tax is paid. The annual interest rate is 9.5% through 12/31/22. The annual interest rate will change after 12/31/22.
For additional information, visit www.marylandtaxes.gov.
INTEREST ON UNDERPAYMENT OF ESTIMATED TAX
If you do not meet the requirement for avoidance of interest for underpayment of estimated tax, obtain Form 502UP online at www.marylandtaxes.gov or from any office of the Revenue Administration Division. Complete and attach it to your amended return. Enter any interest due on line 26 of Form 505X.
If you calculated and paid interest on underpayment of esti- mated tax with your original return, recalculate the interest based on your amended tax return, and attach a copy of a revised Form 502UP showing your recalculation.
12 SIGNATURE, ATTACHMENTS AND PAYMENT INSTRUCTIONS.
Sign and date your return on page 4 and attach all required forms, schedules and statements.
SIGNATURES
You must sign your return. Both spouses must sign a joint return. Your signature(s) signify that your return, including all attachments, is, to the best of your knowledge and belief, true, correct and complete, under the penalties of perjury.
TAX PREPARERS
If another person prepared your return, that person must also
print name, sign the return and enter their preparer’s tax identi- fication number (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. Penalties may be imposed for tax preparers who fail to sign the tax return and provide their preparers tax identification number.
ATTACHMENTS
Be sure to attach wage and tax statements (Forms W-2, 1099s and K-1) to the front of your return if you are claiming addi- tional Maryland withholding. Be sure to attach all forms, sched- ules and statements required by these instructions. Do not attach worksheets. Enclose your check or money order, if required.
MAILING INSTRUCTIONS
Mail your return to:
Amended Return Unit
PAYMENT INSTRUCTIONS
Make your check or money order payable to “Comptroller of Maryland.” Write the type of tax and year of tax being paid on your check. It is recommended that you include your Social Security Number on check using blue or black ink.
DO NOT SEND CASH.
13 NET OPERATING LOSS (NOL).
To claim a deduction for a federal NOL on the Maryland return, you must first calculate the NOL for federal pur- poses. A deduction will be allowed on the Maryland return for the amount of the loss actually utilized on the federal return. The amount of loss utilized for federal purposes is generally equal to the federal taxable income (before loss is used) or the federal modified taxable income as calcu- lated for the year of carryback or carryforward.
An addition or subtraction modification may be required in a car- ryback or carryforward year when the federal NOL, or the year to which the NOL is carried, includes items included in certain provisions of the Internal Revenue Code from which the State of Maryland has decoupled, including certain special depreciation allowances and 2-year carryback provisions.
An NOL generated when an individual or a business entity is not subject to Maryland income tax law, in a tax year beginning on or after October 22, 2007, cannot be used as a deduction to offset Maryland income. For acquisitions or liquidations occurring on or after October 22, 2007, the acquiring business entity which is subject to Maryland income tax law cannot use the acquired or liquidated business entity’s NOL as a deduction to offset Maryland income, if the acquired or liquidated business entity was not subject to Maryland income tax law when its NOL was generated. An NOL being carried forward from tax years beginning before October 22, 2007 can be used until exhausted.
An addition to income may be required in a carryback or carry- forward year if the total Maryland additions to income exceeds the total Maryland subtractions from income in the loss year. The required addition to income represents a recapture of the excess additions over subtractions. The addition to income required is generally equal to the lesser of the NOL deduction in the carryback year or the net addition modification (NAM) in the loss year unless the loss year includes a decoupling modification. For more information regarding NAM, refer to Administrative Release 18.
If an election to forgo a carryback is made, a copy of the federal
Page 5
election for the loss year must be attached with the Maryland amended return.
You must attach copies of federal Form 1045 or 1040X, whichever was used for federal purposes, and a copy of the federal income tax return for the year of the loss. Also include Schedules A and B of Form 1045 or the equivalent worksheets used to develop the federal NOL and show the amounts utilized on the federal return in the carryback or carryforward years. Check the appropriate box on the front of Form 505X located directly below the name and address.
14 INCOME TAX ASSISTANCE.
For more information, visit www.marylandtaxes.gov or email your question to: TAXHELP@marylandtaxes.gov. You may also call 1-800-638-2937 or from Central Maryland 410-260- 7980.
REMINDER: Attach a revised Form 505NR to your 2022 Amended Nonresident Return.
This form is specifically designed for nonresidents who need to amend their Maryland tax returns. Nonresidents who earned income in Maryland must use this form to correct any errors or changes.
While the 505X form can lead to a refund if you overpaid taxes, it does not guarantee one. The amount of refund depends on the specific changes made and the overall tax situation.
Supporting documents, such as copies of the original return and any relevant schedules, must accompany the 505X form. Failure to include these documents can delay processing.
There is no limit to the number of times you can amend your return using the 505X form, as long as each amendment is justified and properly documented.
Filling out the Maryland 505X form can be a daunting task, and many individuals make common mistakes that can lead to delays or complications in processing their amended tax returns. Here are ten frequent errors to avoid when completing this important document.
One of the most significant mistakes is failing to ensure that the name on the form matches the name on the Social Security card. If there’s a discrepancy, it can cause issues with crediting personal exemptions. It’s crucial to double-check this detail to prevent unnecessary complications.
Another common error is neglecting to read the instructions thoroughly. Many people jump straight to filling out the form without understanding the requirements. Taking the time to review the guidelines can save you from making costly mistakes later on.
Individuals often forget to provide their current mailing address accurately. This can lead to delays in receiving any refunds or important correspondence regarding their tax return. Make sure to include all relevant details, including apartment numbers or suite numbers, if applicable.
Additionally, checking the box for changes in filing status can be overlooked. If there are any changes from the original filing, they must be clearly indicated. Failing to do so can result in confusion and potential audits.
Many filers also forget to explain changes in Part III of the form. This section is crucial for clarifying any modifications made to income, deductions, or credits. Without proper explanations, the tax authorities may question your amendments.
Another frequent oversight is not attaching required documentation, such as copies of the federal loss year return or any relevant schedules. These attachments are necessary to substantiate the changes being claimed on the amended return.
People sometimes miscalculate their total income or deductions. This error can lead to incorrect tax liabilities. Always double-check your math and ensure that all figures align with your federal return.
Some filers mistakenly use the wrong form altogether. If you are switching to resident status, you must use Form 502X instead of the 505X. Using the incorrect form can lead to processing delays or outright rejection of your return.
Another pitfall is failing to sign and date the return. An unsigned form is considered incomplete and may not be processed. Ensure that both you and your spouse, if applicable, sign the document before submission.
Lastly, many individuals neglect to keep copies of their submitted forms. This can be problematic if questions arise or if you need to reference the information in the future. Always retain a copy for your records.
By avoiding these common mistakes, you can streamline the process of filing your Maryland 505X form and ensure a smoother experience with your amended tax return.
When filling out and using the Maryland 505X form, consider the following key takeaways:
By keeping these points in mind, you can navigate the Maryland 505X form more effectively and ensure compliance with state tax regulations.
The Maryland 505X form is used for filing an amended tax return for nonresidents. When completing this form, you may also need to prepare additional documents to ensure your tax situation is fully addressed. Below is a list of forms and documents that are often used alongside the Maryland 505X form, along with a brief description of each.
These documents can help ensure that your amended tax return is accurate and complete. It is important to gather all necessary forms and information before submitting your Maryland 505X to avoid any delays or complications with your tax filings.
The Maryland 505X form is similar to the IRS Form 1040X, which is the Amended U.S. Individual Income Tax Return. Both forms allow taxpayers to correct errors on their original returns. Just like the 505X, the 1040X requires the taxpayer to provide their personal information, including Social Security numbers. The 1040X also asks for an explanation of changes made, similar to the 505X’s requirement for detailing changes to income, deductions, and credits. Each form serves the purpose of ensuring that taxpayers can accurately report their financial situations to the respective tax authorities.
Another document that resembles the Maryland 505X is the California Form 540X. This form is used for amending California personal income tax returns. Like the 505X, the 540X requires taxpayers to report their original amounts and the changes they are making. Both forms also provide sections for taxpayers to explain the reasons for their amendments. This ensures that both the Maryland and California tax authorities have a clear understanding of the adjustments made to the taxpayer's income and deductions.
In addition to the importance of various tax amendment forms, understanding the legal complexities surrounding firearms is equally crucial. For those involved in the buying and selling of firearms in Iowa, the Bill of Sale for a Gun serves an essential function. This document not only formalizes the transfer of ownership but also ensures compliance with state laws, thereby protecting both the buyer and the seller in their transaction.
The New York State Form IT-201-X is another comparable document. This form is for amending a New York personal income tax return. Similar to the 505X, the IT-201-X requires taxpayers to indicate their original amounts and the corrected figures. Both forms also emphasize the importance of providing an explanation for any changes. By doing so, they facilitate a transparent review process for tax officials, ensuring that all adjustments are justified and documented properly.
The Florida Form DR-501X serves a similar purpose as well. This form is used to amend property tax returns in Florida. While it focuses on property taxes rather than income taxes, the underlying principle remains the same. Taxpayers must provide original figures and the corrected amounts, along with an explanation of the changes. This ensures that the state has accurate information regarding property valuations and tax obligations, just as the Maryland 505X does for income taxes.
The Texas Form 1040X is another document that shares similarities with the Maryland 505X. Although Texas has no state income tax, this form is used for federal tax amendments. It requires taxpayers to report original and amended amounts, as well as explanations for changes. This mirrors the structure of the 505X, reinforcing the idea that clarity and accuracy are vital in the tax amendment process, regardless of the specific tax type involved.
The Illinois Form IL-1040-X is also akin to the Maryland 505X. This form allows Illinois residents to amend their state income tax returns. Both forms require taxpayers to provide their original return information, the changes being made, and a detailed explanation. This ensures that the Illinois Department of Revenue can effectively assess the validity of the amendments, similar to how the Maryland Comptroller reviews changes on the 505X.
The Virginia Form 760-X is another comparable document. This form is used for amending Virginia income tax returns. Like the 505X, the 760-X requires taxpayers to report their original amounts, the changes, and the reasons for those changes. This structure helps maintain consistency across state tax systems, ensuring that taxpayers have a clear process for correcting any mistakes in their filings.
The Georgia Form 500-X is also similar to the Maryland 505X. This form is for amending Georgia income tax returns. Taxpayers must provide their original figures, any adjustments, and explanations for those changes. This mirrors the requirements of the 505X, emphasizing the importance of accuracy and transparency in the tax amendment process.
Lastly, the Pennsylvania Form REV-1500 is another document that shares similarities with the Maryland 505X. This form is used to amend Pennsylvania personal income tax returns. Like the 505X, the REV-1500 requires taxpayers to report original amounts, changes, and the rationale behind those changes. This ensures that the Pennsylvania Department of Revenue has the necessary information to review and process amendments effectively.