If the Maryland resident must file an individual nonresident return
you may be entitled to a credit on your Maryland state income tax
reporting the partnership, S corporation, LLC or business trust
return. The credit starts at 32.5% of the federal credit allowed, but
income, a separate Form 502CR must be completed for each state
is phased out for taxpayers with federal adjusted gross incomes
and submitted with a copy of the return filed with the other state.
above $41,000 ($20,500 for individuals who are married, but file
For both composite returns and individual returns, no credit is avail-
separate income tax returns). No credit is allowed for an individual
able for taxes paid to states in Group III, or for taxes paid to cities
whose federal adjusted gross income exceeds $50,000 ($25,000 for
or local jurisdictions.
married filing separately). Use the chart below to determine the
decimal amount to be entered on line 3 of Part B.
Shareholders of S Corporations - Maryland resident shareholders
can claim a credit for taxes paid by an S corporation to a state
PART C - QUALITY TEACHER INCENTIVE CREDIT
which does not recognize federal S corporation treatment. A copy
If you are a qualified teacher, you may be able to claim a credit
of the corporation return filed in the other state is required to be
against your State tax liability for tuition paid to take graduate-level
attached to the Maryland return. A separate Form 502CR should be
courses required to maintain certification. This credit applies to
completed for each state showing the following information:
individuals who:
a. currently hold a standard professional certificate or advanced
_______________% x_______________ =________________________
professional certificate;
Stock ownership
Corporation taxable Line 2, Part A, Form 502CR
b. are employed by a county/city board of education in Maryland, a
percentage
income
state or local correctional facility, or a juvenile correctional facility
as listed below in the note;
_______________% x_______________ =________________________
c. teach in a public school or qualified facility and receive a satis-
factory performance;
Stock ownership
Corporation tax
Line 7, Part A, Form 502CR
percentage
d. successfully complete the courses with a grade of B or better;
and
NOTE: A preliminary calculation using Form 502 must be made
e. have not been fully reimbursed by the state/county/city for these
before calculating the credit on Form 502CR. Complete lines 1
expenses. Only the unreimbursed portion qualifies for the credit.
through 22 on Form 502 to determine the amounts to be used for
the 502CR computation.
Each spouse that qualifies may claim this credit. Complete a sepa-
rate column in the worksheet for each spouse.
The credit amount shown on line 8 of Part A, Form 502CR must
then be included as an addition to income on line 5 of the Form 502
NOTE: Qualified juvenile facilities are: the Alfred D. Noyes Children's
you will file.
Center; the Baltimore City Juvenile Justice Center; the Charles H.
Hickey, Jr. School; the Cheltenham Youth Facility; the J. DeWeese
D.C. Unincorporated Business Franchise Tax - Self-employed
Carter Center; the Lower Eastern Shore Children's Center; the
individuals and partners in a partnership that are subject to D.C.
Thomas J. S. Waxter Children's Center; the Victor Cullen Center;
unincorporated business franchise tax may claim a credit on Form
the Western Maryland Children's Center; and the youth centers.
502CR. A copy of the D.C. return is required for self-employed
individuals and for partners, a K-1 or other statement from the part-
INSTRUCTIONS
nership showing the partner’s share of income and the partner’s
Line 1. Enter the name of the Maryland public school system or
share of the D.C. tax.
State or local correctional facility or qualified juvenile facility
Installment Sales in Another State - You may be eligible for
in which you are employed and teach.
credit for taxes paid to another state for gain recognized on installment,
Line 2. Enter the amount of tuition paid for graduate-level courses
sales proceeds, even if the other state required the total be recognized
for each qualifying teacher and the name of the institution(s)
in an earlier tax year. Credit is allowed against the state income tax
it was paid.
only. The gain must have been deferred for federal tax purposes, but
fully taxed in the year of the sale by another state that does not recog-
Line 3. Enter the amount received as a reimbursement for tuition
nize the deferral. The credit allowed is the amount of the gain taxed in
from your employer.
Maryland in the current year multiplied by the lesser of:
Line 5. The maximum amount of credit allowed is $1,500 for each
• the highest state tax rate used on your Maryland tax return or
qualifying individual.
• the tax rate imposed by the other state on the gain.
Line 6. The credit is limited to the amount paid less any reimburse-
PART B - CREDIT FOR CHILD AND DEPENDENT CARE
ment up to the maximum amount allowed for each qualify-
EXPENSES
ing individual. Enter the lesser of line 4 or line 5.
If you were eligible for a Child and Dependent Care Credit on your
Line 7. Enter the total of line 6, for Taxpayers A and B. Also enter
federal income tax return, Form 1040 or 1040A for tax year 2011,
this amount on line 3, Part G.
Credit for Child and
dependent Care expenses Chart
If your filing status is Married Filing Separately
Decimal Amount
For all other filing statuses, if your federal
and your federal adjusted gross income is:
adjusted gross income is:
At Least
But less than
At least
But less than
$0-
$20,501
.3250
$0
$41,001
$20,501
$21,001
.2925
$41,001
$42,001
$21,001
$21,501
.2600
$42,001
$43,001
$21,501
$22,001
.2275
$43,001
$44,001
$22,001
$22,501
.1950
$44,001
$45,001
$22,501
$23,001
.1625
$45,001
$46,001
$23,001
$23,501
.1300
$46,001
$47,001
$23,501
$24,001
.0975
$47,001
$48,001
$24,001
$24,501
.0650
$48,001
$49,001
$24,501
$25,001
.0325
$49,001
$50,001
$25,001
or over
.0000
$50,001
or over