Maryland Credit for Tax Paid to Other States

Article ID: 59187  

Question
Maryland Credit for Tax Paid to Other States

Answer

If you are a Maryland resident (including a resident fiduciary) and you paid income tax to another state, you may be eligible for a credit on your Maryland return. Nonresidents (filing Form 505, 515 or 504) are not eligible for this credit.

Find the state to which you paid a nonresident tax in the groups listed below. The instructions for that group will tell you if you are eligible for credit and should complete Part A of Form 502CR.

You must file your Maryland income tax return on:

  • Form 502 and complete lines 1 through 22 of that form; or
  • Form 504 and complete lines 1 through 23.

Then complete Form 502CR Parts A and G and attach to Form 502 or 504. A completed, signed copy of the income tax return filed in the other state must also be attached to Form 502 or 504.

Group I - Maryland Residents

A Maryland resident (including a resident fiduciary) having income from one of these states must report the income on the Maryland return Form 502 or 504. To claim a credit for taxes paid to another state, complete Form 502CR and attach it and a copy of the other state's nonresident income tax return to your Maryland return.

Alabama - AL Massachusetts - MA Pennsylvania - PA (except wage income)
Arizona - AZ Michigan - MI Rhode Island - RI
Arkansas - AR Minnesota - MN South Carolina - SC
California - CA Mississippi - MS Tennessee - TN
Colorado - CO Missouri - MO Texas - TX
Connecticut - CT Montana - MT Utah - UT
Delaware - DE Nebraska - NE Vermont - VT
Georgia - GA New Hampshire - NH Virginia - VA (except wage income)
Hawaii - HI New Jersey - NJ Washington, DC - DC (except wage income)
Idaho - ID New Mexico - NM West Virginia- WV (except wage income)
Illinois - IL New York - NY Wisconsin - WI
Indiana - IN North Carolina -NC Territories and Possessions of the United States
Iowa - IA North Dakota - ND American Samoa - AS
Kansas - KS Ohio - OH Guam - GU
Kentucky - KY Oklahoma - OK Northern Mariana Island - MP
Louisiana - LA Oregon - OR Puerto Rico - PR
Maine - ME   U.S. Virgin Islands - VI

 

Group II - Reciprocal States

Maryland has a reciprocal agreement with the following states:

  • Pennsylvania - PA
  • Virginia - VA
  • Washington, DC - DC
  • West Virginia - WV
Group III - No state income tax

No state income tax - No credit allowed.

  • Alaska - AK
  • Florida - FL
  • Nevada - NV
  • South Dakota - SD
  • Washington - WA
  • Wyoming - WY
Dual Residents

A person may be a resident of more than one state at the same time for income tax purposes. If you must file a resident return with both Maryland and another state, use the following rules to determine where the credit should be taken: 

  1. A person who is domiciled in Maryland and who is subject to tax as a resident of any of the states listed in Group I or II can claim a credit on the Maryland return (Form 502) using Part A of Form 502CR.
  2. A person domiciled in any state listed in Group I or II who must file a resident return with Maryland must take the credit in the state of domicile.

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Views: 566 Created on: Jun 15, 2013