Maryland

Maryland State Payments

Understanding Your Obligations

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Business Tax Specialist

Tax Expert

4 min read
Published on 4 months ago
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Maryland State Payments

Maryland residents and nonresidents are required to make state income tax payments based on their federal and Maryland-specific income. The state offers various forms and worksheets to assist taxpayers in calculating and submitting their payments accurately.

Payment Voucher for Individual Income Tax (Form PV)

Form PV is automatically generated by OLT (Online Taxes) software when a taxpayer owes an amount. It includes personal details and the amount due. Taxpayers can use this form to mail their payment.

To add Form PV in OLT software: Navigate to the State section, select Maryland, and the form will be generated if a payment is due.

Payment Voucher Worksheet for Estimated Tax Payments (Form MD PVW)

Form MD PVW is used for estimated tax payments. Taxpayers can access it through OLT software by selecting the State section, then choosing Maryland, and confirming they wish to complete the worksheet.

Capital Gain Tax (Form 502CG)

Chapter 604 of the Acts of 2025 imposes a 2% tax on certain capital gain income for individuals with a federal adjusted gross income exceeding $350,000. This tax applies to residents and nonresidents.

Taxpayers must complete Form 502CG and attach it to Form 502 or Form 505. The form requires reporting federal net capital gain income and any capital gains from Maryland Schedules K-1.

Business Income Tax Credits (Form 500CR)

Form 500CR allows businesses to claim various tax credits. These credits must be added to income as specified in the form’s instructions. The credits are then reported on Form 500, 502, 505, 510, or 511.

Income Tax Credits for Individuals (Form 502CR)

Individuals can claim various credits using Form 502CR. The total credits are calculated by summing amounts from Parts J through M and reported on Line 24 of Form 502 or equivalent lines on other forms.

Resident and Nonresident Tax Forms

  • Form 502: Used by Maryland residents. Includes federal adjusted gross income, wage information, and state-specific additions/subtractions.
  • Form 505: Used by nonresidents. Requires reporting non-Maryland losses and additions to income.
  • Form 510: Used by partnerships. Requires providing Schedule K-1 to members, including capital gain information starting in tax year 2025.

Source:

Form 502CG

Form 502CR

Form 510

Resident Booklet (Form 502 Instructions)

Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.

OLT Free Filing

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Key Takeaways

  • Understanding tax deductions can significantly reduce your tax liability
  • Keep detailed records of all tax-related expenses and documents
  • Consult with a tax professional for complex situations

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