Maryland Form 515 is a tax return required from nonresidents who worked in Maryland but reside in Delaware, New York, and Pennsylvania. These jurisdictions impose a local income or earnings tax on Maryland residents. The form accounts for local taxes due to Maryland and ensures taxpayers are credited or refunded accordingly.
Individuals who are not residents of Maryland but earned income from employment within the state and live in Delaware, New York, or Pennsylvania (and their jurisdictions impose similar taxes on Maryland residents) must file Form 515. This requirement also applies if the individual is obligated to file a federal return and meets the specific conditions outlined in the Maryland tax instructions.
Your filing status on Maryland Form 515 should generally match the status used on your federal tax return, with considerations for special circumstances like dependent taxpayers. For example, if a dependent taxpayer is claimed on another's federal return, they should select "Dependent taxpayer" on Form 515. Married individuals must file separately if one is a resident and the other is a nonresident of Maryland.
What income is subject to Maryland tax for nonresidents?
For nonresidents filing Form 515, Maryland tax applies to income derived from employment within the state. This includes salaries, wages, or compensation for personal services performed in Maryland. If residing in jurisdictions like New York City or Wilmington, Delaware, where local taxes apply to Maryland residents, those wages are also subject to Maryland tax.
Yes, nonresidents can claim exemptions on Form 515 similar to those on their federal return. This includes personal exemptions and those for dependents, with adjustments for age and blindness. The exemption amount, however, may differ from the federal return’s allowance.
What if I have income from both Maryland and non-Maryland sources?
If you have income from both Maryland and non-Maryland sources, report only the Maryland-source income on Form 515. Non-Maryland income should be reported on a separate nonresident return if applicable. This ensures that local Maryland taxes are accurately calculated based on the income earned within the state.
Deductions on Maryland Form 515 are adjusted based on the percentage of your income subject to Maryland tax. You can choose between the standard deduction method and the itemized deduction method, similar to your federal return. Your deductions and exemptions must be prorated using the Maryland Income Factor, which aligns your deductions with the portion of your income taxed by Maryland.
Failure to file Maryland Form 515 can result in penalties, interest on unpaid taxes, and possible criminal charges. The penalties are severe for not filing a tax return, not paying any due tax, filing a false return, or making a false certification. It is critical to file and pay any Maryland taxes on time to avoid these consequences.
Maryland Form 515, along with any payment due, should be mailed to the Comptroller of Maryland, Revenue Administration Division, at the address specified on the form. Ensure all required documentation and payment are included to avoid processing delays or penalties for incomplete returns.