What's New for the 2. Tax Filing Season (2. Tax Year)Here are some of the most important changes and benefits affecting the approximately 3. Maryland income tax returns. Opening of the 2. Tax Filing Season. Maryland will begin processing personal income tax returns for Tax Year 2. January 2. 3, 2. 01. Internal Revenue Service (IRS) begins accepting returns. Note: If the IRS experiences delays, these delays will postpone our opening date. We plan to begin processing business returns on January 6, 2. No returns will be processed before the start- up dates, even if sent prior to that date. The Comptroller's Office recommends filing electronically to ensure returns are received and processed quickly. Claiming Business Income Tax Credits. Legislation mandates the Form 5. Download FISCAL FACT No. 486: 2016 Tax Brackets (PDF) Every year, the IRS adjusts more than 40 tax provisions for inflation. This is done to prevent what is called. Updated 2017: When you will receive your tax refund from the IRS? Tax refund schedule, first day to file taxes, & other frequent tax return questions. First child fatality reported in NC for 2016-2017 flu season. The Internal Revenue Service (IRS) is now accepting and processing 2016 federal individual income tax returns. CR must be filed electronically. Not all tax software supports electronic filing of Forms 5. CR or 5. 02. CR. Be sure to use a Comprehensive Software vendor which you can find on our website at: Individual Tax Software and Business Tax Software. Beginning with Tax Year 2. Community Investment Tax Credit and/or the Endow Maryland Tax Credit on Maryland Form 5. CR, and thus avoid the electronic filing requirement. Read instructions to Form 5. CR to see if you qualify for this election. Filing Deadline. Personal income tax returns are due by April 1. Business income tax return dates vary. See Filing Extensions and Deadlines for Corporations. Maryland recognizes Emancipation Day as a legal holiday. Returns with a due date of April 1. Local Taxpayer Service Offices. Taxpayer Service Offices will be open from 8: 3. Please bring any W- 2 statements or other withholding statements, such as 1. 2017 Tax Filing Season Begins Jan. 23 for Nation’s Taxpayers, Tax Returns Due April 18. 2016 Tax Season Opens Jan. 19 for Nation’s Taxpayers. 21, 2015 Español. New Tax Rates. Local Tax Rate Changes - For tax year 2. Anne Arundel County has decreased its rate to 2. Worcester County has increased its rate to 1. Please note the changes on 2. Form 5. 02. D. For tax year 2. Calvert County has increased its rate to 3. Somerset County has increased its rate to 3. Please note the changes on 2. Form 5. 02. D. Note: Since the Special Nonresident Tax Rate is tied to the lowest local rate, the Special Nonresident Tax Rate increased to 1. Exemptions and Deductions. There have been no changes affecting personal exemptions on the Maryland returns. Personal Exemption Amount - The exemption amount of $3,2. The $3,2. 00 exemption is phased out entirely when the income exceeds $1. See Instruction 1. Resident tax booklet for the reduced amounts, or review the page, Determine Your Personal Income Tax Exemptions. The additional exemption of $1,0. Dependent Form 5. B - will be required to be attached to Form 5. Form 5. 05 and Form 5. Itemized Deduction Limitation - The State of Maryland continues to recognize the federal itemized deduction limitation threshold (Pease Limitation). This means that a taxpayer will reduce the federal itemized deductions used on the Maryland return only when the federal adjusted gross income is high enough for the federal itemized deductions to be reduced or limited on federal Form 1. Schedule A. If a taxpayer with high income is subject to limitations on itemized deductions, and has taken a state income tax deduction, the taxpayer will need to use the revised itemized deduction worksheet (Resident Worksheet 1. A or Nonresident Worksheet 1. A) to reflect the amount of state income tax deductions that were limited on the Maryland return. Tax Forms, Instructions & Booklets. The resident tax booklets contain both the tax forms and the instructions for each major form. The tax forms on the Web site are available separately from the resident and nonresident instruction booklets. All of our tax forms have been reformatted to ensure enhanced readability when paper forms are filed. This new format has increased the number of pages of some of the tax returns. Make sure that you attach all pages of your return to ensure that your return is processed correctly. Maryland Individual Tax Credit Form 5. CR has been removed from the resident tax booklet, but is available to be downloaded from our Web site. Tax Forms and Instructions Online - Tax forms and instructions for Individual and Business taxpayers are available here online at Maryland Tax Forms and Instructions. Tax Booklets at Post Offices - The Comptroller's Office no longer supplies local post offices withtax booklets. Tax Booklets at Libraries - We have provided a limited supply of tax booklets to a number of libraries throughout the State that have requested them. Tax Booklets at Comptroller's Taxpayer Service Offices - Tax booklets are available at all of our 1. Request a Tax Booklet - Taxpayers may request a resident or nonresident tax booklet by calling (4. Subtractions. Increased pension exclusion - Maryland's maximum pension exclusion, which is available to qualifying taxpayers who are age 6. Subtraction modification updates for tax year 2. Increase to the existing Honorable Louis L. Goldstein Volunteer Fire, Rescue and Emergency Medical Services Personnel Subtraction Modification Program maximum amount from $4,0. Note: the increase of this subtraction does not apply to volunteer reserve and auxiliary police officers. They are entitled to a maximum subtraction of $3,5. The mileage rate for certain qualifying charitable use of a car on Form 5. V has decreased from 5. The subtraction modification for the amount of qualified principal residence indebtedness included in federal adjusted gross income that was allowable as an exclusion under the Mortgage Relief Act of 2. Now any individual contributing funds to a Maryland College Investment Plan or Broker- Dealer College Investment Plan qualifies for a subtraction modification. Law enforcement officer means an individual who in an official capacity is authorized by law to make arrests, and is a member of a Maryland law enforcement agency, including an officer who serves in a probationary status or at the pleasure of the appointing authority of a county or municipal corporation. Federal law enforcement officers do not qualify. Individual Taxpayer Changes. New Payment Voucher . The Form IND PV is a payment voucher. See the Form IND PV for more information. Form EL1. 02: The Form EL1. See Instruction 6 in the Resident Instruction Booklet for more information. New Retirement Income Form . The Form 5. 02. R is required to be filed by any resident individual who: 1) reported income from a pension, annuity, or individual retirement annuity (IRA) on a federal return; 2) received any income during the year from Social Security or Railroad Retirement (Tier I or Tier II); OR 3) claimed a pension exclusion on line 1. Form 5. 02. See Form 5. R for more information. Interest Rate Decrease: The annual interest rate decreases from 1. January 1, 2. 01. Interest is due at a rate of 1. January 1, 2. 01. Heritage Structure Rehabilitation Tax Credit: The Sustainable Communities Tax Credit is now the Heritage Structure Rehabilitation Tax Credit. Taxpayers who choose not to file electronically may submit payment by printing and mailing the Form 5. D. Many state revenue agencies, including Maryland, are requesting additional information this filing season in an effort to combat stolen- identity tax fraud and to protect you and your tax refund. See Parts W and X of Instructions to Form 5. CR for more information. Reminder about Electronic Format: For tax years beginning after December 3. Maryland Form 5. 00. CR Business Income Tax Credits is no longer available. You must file your Maryland return electronically to claim the business income credits available from Form 5. CR. See Instructions to Form 5. CR. Beginning with Tax Year 2. Community Investment Tax Credit and/or the Endow Maryland Tax Credit on Maryland Form 5. CR, and thus avoid the electronic filing requirement. This applies to both business and individual income tax software packages. The Basic designation is used for simple returns. Software packages designated as Comprehensive support all electronic forms, including Form 5. CR, Amended Returns and the transmission of binary attachments (PDFs). This process is designed to help taxpayers and tax professionals determine which software will best fit their needs. Please see the latest updated list of approved e. File software vendors for individuals and businesses. The new Maryland Power of Attorney Forms are now available. The Form EL1. 01 has been enhanced and redesigned to facilitate the use of electronic signatures of taxpayers and tax preparers. See Parts W and X of Instructions to Form 5. CR for more information.
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