Below is an informational piece on new forms that will be relevant for tax preparers and tax filers for the upcoming tax season from the Comptroller of Maryland Fall 2018 newsletter. www.marylandtaxes.gov

What’s New for Tax Year 2018?

Tax professionals and taxpayers should be aware of several changes for the upcoming tax season.

These changes include: The Form 502D and the Form 502E are no longer forms to be mailed and have been redeveloped as Worksheets. The Payment Voucher Worksheet is to be used to determine the amount of the estimated payment or extension payment required. Payment is sent using the new Form PV. The Form PV replaces the IND PV for remitting payments. The Form PV is used to remit payments for Form 502 or 505 and Estimated and Extension payments.

See Instruction 23 for more information.  Submit resident returns with payments using Form PV to:

Comptroller of Maryland, Payment Processing

P.O. Box 8888, Annapolis, MD 21401-8888

Resident returns filed without payment by check or money

order are submitted to: Comptroller of Maryland,

Revenue Administration Division,

110 Carroll St., Annapolis, MD 21411-0001

The General Assembly altered the Maryland

earned income tax credit to allow an individual

without a qualifying child to claim the credit

without regard to the minimum age requirement

under the Internal Revenue Code.

Exemptions were preserved by law and

may be claimed on the Maryland income tax

returns. The standard deduction amount for

Maryland was raised to $2,250 for individuals,

married filing separately and dependent

taxpayers. It was increased to $4,500 for joint

filers and other filing statuses.

There is a new line for the pension exclusion,

which is a pension exclusion for retired law

enforcement, fire, rescue and emergency

services personnel. This was previously on Form 502SU. It

is for individuals at least 55 or over on the last day of the

taxable year, but under 65. If the taxpayer is 65 or over, totally

disabled or has a spouse who is totally disabled, then they

may take the existing pension exclusion. An individual cannot

take both pension exclusions. The amount is up to $15,000

and has a corresponding worksheet in the Instructions.

Retirement income must be attributed to service as retired law

enforcement, fire, rescue and emergency service, personnel. It

also expanded eligibility to correctional officers.

Expanded subtraction – code letter “u,” which expands

the military retirement income subtraction by decreasing

the age requirement from age 65 to 55 to be eligible to claim

the increased amount of subtraction modification of up to $15,000 of certain military retirement income to the extent

included in the federal adjusted gross income.

New subtraction modification – code letter “tt,” provides

that a teacher who teaches kindergarten through 12th grade

in Maryland for an academic year ending during the taxable

year may subtract up to $250 of unreimbursed expenses

paid or incurred during the taxable year for

supplies if the supplies are used by students in

the classroom, or the teacher in preparation

for classroom teaching.

Form 502CR – Refundable credit for

Student Loan Debt Relief Credit was

expanded to include graduate student loan

debt. Amount of credit may not exceed

$5,000 and has to be certified by the

Maryland Higher Education Commission.

The credit must be claimed in the year

certified by the Maryland Higher Education

Commission.

Form 502CR – New credit-independent

Living Tax Credit. An individual may claim a

credit against their Maryland State income tax

equal to 50 percent of the qualified expenses incurred during

a taxable year to install accessibility and universal visitability

features to or within a home. This credit must be certified and

claimed in the amount in the credit certificate.

Form 500CR – Maryland Business Income Tax Credits Part B – Small Business Tax Relief – An individual or small business may be entitled to claim a credit toward State tax if they pay earned sick or safe leave and it is granted by the Maryland Department of Commerce. This credit is refundable in certain circumstances.

Form MET-1 Maryland Estate Tax Return – The minimum filing requirement for a decedents gross estate is $4 Million if the date of death is in 2017; the Maryland gross estate exemption increases to $5 Million if the date of death is in 2018; the Maryland gross estate exemption increases to $5 Million if the date of death is in 2019.