What Is the Maryland 502 Income Tax Form?
Discover how Maryland Form 502 uses your federal tax data to calculate state and local tax, and learn about the key state-specific adjustments involved.
Maryland’s Form 502, the Resident Income Tax Return, is the primary document for residents to report their annual income and settle their tax obligations with the state. This form calculates both the state income tax and the local or county income tax, mirroring the function of the federal Form 1040 but tailored to Maryland’s specific tax laws. The process begins with the figures from your federal return and adjusts them according to state-specific rules for income, deductions, and credits.
Who Must File Form 502
Determining whether you need to file a Maryland tax return hinges on your residency status and gross income. A Maryland resident for tax purposes is anyone who is domiciled in Maryland on the last day of the tax year or who maintains a physical presence in the state for more than six months. If you are a resident and are required to file a federal income tax return, you must also file a Maryland return.
Even if you are not required to file a federal return, you may still have a Maryland filing obligation based on your gross income. For the 2024 tax year, a single resident under age 65 must file if their gross income is $14,600 or more. For married couples filing jointly where both spouses are under 65, the threshold is a combined gross income of $29,200.
Individuals who do not meet these income thresholds might still choose to file Form 502. If Maryland income tax was withheld from your wages, as shown on your Form W-2, filing a return is the only way to receive a refund of that money. This applies to many students and part-time workers. Individuals who are non-residents or part-year residents must use a different form, Form 505, to report income earned in Maryland.
Required Information for Form 502
You will need the full names and Social Security numbers for yourself, your spouse if filing jointly, and every dependent you claim. This personal information must precisely match the data on your Social Security cards to avoid processing delays or issues with claiming exemptions.
The foundation of your Maryland return is your completed federal tax return, specifically Form 1040. The federal adjusted gross income (AGI) figure is the starting point for calculating your Maryland taxable income. You will also need all income-reporting documents, such as:
- Form W-2 from employers
- Form 1099-G for unemployment compensation
- Form 1099-R for pensions and retirement distributions
- Forms 1099-INT and 1099-DIV for interest and dividend income
Records of any Maryland taxes you have already paid throughout the year are also necessary. This includes state tax withheld from your paychecks, detailed on your W-2s, and any quarterly estimated tax payments you made directly to the Comptroller of Maryland. For those anticipating a refund via direct deposit or planning to pay a balance due electronically, having bank account and routing numbers ready is essential. The official Form 502 and its detailed instructions can be downloaded from the Comptroller of Maryland’s website.
Key Maryland Tax Computations
Maryland law requires certain types of income that are not taxed at the federal level to be added back to your income. A common example is interest earned from municipal bonds issued by states other than Maryland. While this income is federally tax-exempt, Maryland requires you to include it in your state taxable income.
Conversely, Maryland offers several subtractions that can lower your taxable income. These include:
- A portion of retirement income from pensions, annuities, and 401(k)s, with specific rules for taxpayers over a certain age.
- A subtraction for military retirement income.
- Contributions made to Maryland 529 college savings plans.
- A two-income married couple subtraction to reduce joint income.
Beyond subtractions, taxpayers may qualify for credits, such as the state’s Earned Income Tax Credit or a credit for child and dependent care expenses, which directly reduce the amount of tax owed.
Filing and Payment Procedures
The Comptroller of Maryland encourages electronic filing through its free iFile system or through approved commercial tax preparation software. E-filing is the fastest method, with refunds often issued in as few as seven business days. If you prefer to file a paper return, the mailing address depends on whether you are due a refund or have a balance due. Returns with payments are sent to a specific P.O. Box in Annapolis to expedite processing.
If you owe taxes, payment can be made electronically at the time of filing through an electronic funds withdrawal from your bank account. Other options include paying by credit card or sending a check or money order with Form PV, the Personal Tax Payment Voucher.
After you have filed, you can monitor the status of your refund using the “Where’s My Refund?” tool on the Comptroller’s website. This online service requires your Social Security number and the exact amount of your expected refund to provide an update. For paper filers, processing can take approximately 30 days from the date the return is received.