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
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.