Were you a resident of Maryland for part of the year?

If you either established or abandoned Maryland residency during the calendar year, you must file as a part-year resident, using Form 502. You may also be required to file a return with your other state of residence. Filing a part-year return in your first year of residency may help you avoid receiving a notice asking why you did not file with Maryland the previous year. The following is general information to help you file a part year resident return. See Instruction 26 in the Maryland tax booklet for more detailed instructions.

1. Complete the Part-Year Residents area on the front of Form 502.Show the dates of residence in Maryland and enter "P" in the box.
2. Enter your federal adjusted gross income on line 1 of Form 502. Copy the amount from line 37 of federal Form 1040, line 21 from 1040A or line 4 from 1040EZ.
3. Complete the Additions to Income area using Instruction 12. If you had losses or adjustments to income on your federal return, write on line 5 those loss or adjustment items, which were realized or paid when you were not a resident of Maryland.
4. Complete the Subtractions from Income area using Instruction 13. You may include only subtractions from income that apply to income subject to Maryland tax. Include on line 13 any income received during the part of the year when you were not a resident of Maryland.
5. You must adjust your standard or itemized deductions and exemptions based on the percentage of your income subject to Maryland tax. Use this formula to figure the percentage of Maryland income to total income: Amount from line 18 of Form 502 divided by amount from line 1 of Form 502. This is your Maryland Income Factor (cannot exceed 1 {100 percent})
6. If you itemize deductions, complete lines 19a - 19b of Form 502. Prorate the itemized deductions using this formula: Net itemized deductions (line 19c) multiplied by Maryland Income Factor. This amount is your itemized deductions (enter on line 19)
7. If you are not itemizing deductions, you must use the standard deduction. The standard deduction must be prorated using the Maryland Income Factor. Calculate the full standard deduction using the worksheet on page 8 of the state tax booklet instructions. Prorate the standard deduction using this formula: Full standard deduction multiplied by Maryland Income Factor. This is your prorated standard deduction (enter on line 19)
8. Complete line 21 for the state exemption allowance. The value of your state exemptions (line 21 of Form 502) must be prorated using the Maryland Income Factor. Use this formula: Total state exemption amount multiplied by Maryland Income Factor. This is your prorated exemption amount (enter on line 21).
9. You must prorate your Earned Income Credit, Poverty Level Credit, and Refundable Earned Income Credit (if you qualify) by the Maryland Income Factor. See Instruction 26 in the Maryland tax booklet to see how the factor is applied.

Part-year residents with pensions should complete the pension exclusion worksheet using total taxable pension and total Social Security and Railroad Retirement benefits as if you were a full-year resident. Prorate the amount on line 5 by the number of months of Maryland residence divided by 12. However, if you begin to receive your pension during the tax year you became a Maryland resident, use a proration factor of the number of months you were a resident divided by the number of months the pension was received.