The resident tax booklets contain both the tax forms and the instructions for each major form. In this example, the real estate taxes make up $8,000 of your $10,000 limitation and only $2,000 are required to be added back as state income taxes. A reasonable interpretation of the law includes the following example: you, a single filer, paid $8,000 in real property taxes and $4,000 in Maryland state income taxes, Maryland will accept an addback of state income tax of $2,000 on Line 17b. Maryland will accept any reasonable interpretation of the limitation reported on line 17b. The addback is limited to $10,000 ($5,000 for married filing separately) and is reported on line 17b of the Maryland Form 502. The new federal limitation impacts your Maryland return because you must addback the amount of state income taxes you claimed as federal itemized deductions. You cannot claim more than $10,000 ($5,000 for married filing separately) for state and local taxes you paid. Limitation on deduction for state and local tax - Federal tax reform limited the amount you can deduct for state and local taxes. The Comptroller's Office encourages you to run your income tax returns under both deduction methods, and to compare the results of taking the standard deduction versus itemizing your deductions, to see which method causes the lowest overall tax liability. You may take the federal standard deduction, while this may reduce your federal tax liability, it may result in an increase to your Maryland income tax liability. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level. Should I take the standard deduction or itemize? - The federal tax reform of 2017 significantly raised the federal standard deduction. This means that high-income taxpayers are not required to reduce their itemized deductions using the itemized deduction worksheet used in prior years. Itemized Deduction Limitation - The State of Maryland follows the new federal tax law treatment to suspend the itemized deduction limitation threshold (Pease Limitation). Standard Deduction - The tax year 2022 standard deduction is a maximum value of $2,400 for single taxpayers and to $4,850 for head of household, a surviving spouse, and taxpayers filing jointly. The additional exemption of $1,000 remains the same for age and blindness.ĭependent Form 502B - will be required to be attached to Form 502, Form 505 and Form 515 to determine what exemptions you are entitled to claim. See Instruction 10 in the Resident tax booklet for the reduced amounts, or review the page, Determine Your Personal Income Tax Exemptions. The $3,200 exemption is phased out entirely when the income exceeds $150,000 ($200,000 for joint taxpayers). Personal Exemption Amount - The exemption amount of $3,200 begins to be phased out if your federal adjusted gross income is more than $100,000 ($150,000 for joint taxpayers). There have been no changes affecting personal exemptions on the Maryland returns. ![]() Our branch office staff will assist taxpayers with scheduling an appointment. In order to make an appointment at one of our branch offices, please access the appointment scheduler at. For an appointment to complete a service such as filing a Maryland income tax form and/or electronically filing Maryland income tax forms for free please bring any W-2 statements or other withholding statements, such as 1099s, that you have, along with your completed federal income tax return.
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