Maryland Residency and Who Must File
Maryland requires individuals to determine their residency status to correctly file state income tax returns. The Maryland State Tax Commission provides specific forms and instructions for residents, part-year residents, and nonresidents.
Residency Status
- Residents: Individuals who live in Maryland for the entire tax year must file Form 502, the Individual & Part-year Resident Income Tax Return.
- Part-year Residents: Those who lived in Maryland for only part of the year should file Form 502 and indicate "P" in the designated box on the front of the form, along with the dates of residence.
- Nonresidents: Individuals who do not live in Maryland but earn income from Maryland sources must file Form 505, the Non-resident Income Tax Return.
Who Must File?
- Residents must file Form 502 if they have any Maryland-source income.
- Nonresidents must file Form 505 if they have Maryland-source income and their gross income exceeds the thresholds specified in Instruction 4 of Form 505.
- Part-year residents must file Form 502 and indicate their residency period.
- Military personnel stationed in Maryland may use the "M" designation on Form 502 for non-Maryland military income.
Special Considerations
- Individuals with federal adjusted gross income over $350,000 may be subject to a 2% capital gains tax under Chapter 604 of the Acts of 2025. This requires filing Form 502CG.
- Married couples filing separate Maryland returns but joint federal returns must follow specific instructions, including entering "D" in the residency box on Form 502.
Filing Instructions and Forms
- Form 502: For residents and part-year residents. Attach wage and tax statements (W-2, W-2G, 1099) to the front of the form.
- Form 505: For nonresidents. Include all required forms and schedules, and subtract non-Maryland income from federal adjusted gross income on Line 6b.
- Form 502CG: Attach to Form 502 or 505 if capital gains tax applies.
Source:
Form 502 - Individual & Part-year Resident Income Tax Return
Form 505 - Non-resident Income Tax Return
Form 502CG - Maryland Capital Gain Form
Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.