Fill - Free fillable Form 11111: 502CR 111111111111 1111111111 111111111111111111 -- 2018 (Comptroller of Maryland) PDF form

MARYLAND

FORM

502CR

INCOME TAX CREDITS

FOR INDIVIDUALS

Attach to your tax return.

COM/RAD-012

2018

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18502C049

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Your Social Security Number Spouse's Social Security Number

Your First Name MI

Your Last Name

Spouse's First Name MI

Spouse's Last Name

Read Instructions for Form 502CR. Note: You must complete and submit pages 1 through 4 of this form to receive credit for the items listed.

PART A - TAX CREDITS FOR INCOME TAXES PAID TO OTHER STATES AND LOCALITIES

If you were a part-year resident, do not claim a credit for tax paid on nonresident income you included on line 12 of the Form 502.

If you are claiming a credit for taxes paid to multiple states and/or localities, see instructions.

1. Enter your taxable net income from line 20, Form 502 (or line 10, Form 504). . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Taxable net income in other state. Write on this line only the net income which is taxable in both the other state

and Maryland. If you are taxed in the other state on income which is not taxable in Maryland, do not include that

amount here. NOTE: When the tax in the other state is a percentage of a tax based on your total income

regardless of source, you must apply the same percentage to your taxable income in the other state to

determine the income taxable in both states.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Revised taxable net income (Subtract line 2 from line 1.) If less than zero, enter zero.. . . . . . . . . . . . . . . . . . 3.

4. Enter the Maryland tax from line 21, Form 502 (or line 11, Form 504). This is the Maryland tax based on your

total income for the year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Tax on amount on line 3. Compute the Maryland tax that would be due on the revised taxable net income by

using the Maryland Tax Table or Computation Worksheet contained in the instructions for Forms 502 or 504.

Do not include the local income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Tentative State tax credit (Subtract line 5 from line 4.) If less than zero, enter zero.. . . . . . . . . . . . . . . . . . . 6.

7. Enter the Local tax from line 28, Form 502 (or line 18, Form 504). This is the Local tax based on your total

income for the year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Local tax on amount on line 3. Compute the Local tax that would be due on the revised taxable net income by

multiplying line 3 by your Local tax rate .0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Tentative Local tax credit (Subtract line 8 from line 7.) If less than zero, enter zero. . . . . . . . . . . . . . . . . . . . 9.

10. Tentative Total tax credit (Add line 6 and line 9.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Total state and local tax shown on tax return(s) filed with the state of (Enter 2-letter state code, code must be

entered for credit to be allowed)

Enter the amount of your 2018 income tax liability (after deducting

any credits for personal exemptions) to the other state and locality in the other state (where applicable). Do not

enter state or locality tax withheld from your W-2 forms. It is important that a copy of the tax return that

was filed with the other state and/or locality be attached to your Maryland return

. . . . . . . . . . . . . 11.

12. Credit for income tax paid to other state and/or locality. Your credit for taxes paid to another state and/or locality

is the smaller of the tax actually paid (line 11) or the reduction in Maryland tax resulting from the exclusion of

income in the other state and/or locality (line 10). Write the lesser of line 11 or line 10.

. . . . . . . . . . . . . . . 12.

State and Local Credits Allowed

13. State Credit for Income Tax Paid to other state (Lesser of line 6 or line 12). Enter on line 1, Part AA. . . . .

13.

14. Local Credit for Income Tax Paid to other state (Subtract line 13 from line 12.) Enter on line 1, Part BB . . 14.

Print Using Blue or Black Ink Only

MARYLAND

FORM

502CR

INCOME TAX CREDITS

FOR INDIVIDUALS

Attach to your tax return.

COM/RAD-012

2018

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NAME SSN

PART B - CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES

1. Enter your federal adjusted gross income from line 1 of Form 502 or line 17, column 1 of

Form 505 or Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter your federal Child and Dependent Care Credit from federal Form 2441 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the decimal amount from the chart in the instructions that applies to the amount on line 1 . . . . . . . . . . . . . 3.

4. Multiply line 2 by line 3. Enter here and on Part AA, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

PART C - QUALITY TEACHER INCENTIVE CREDIT

Enter the Name of Qualied Employer

1. Enter the Maryland public school system or a State or local correctional

Taxpayer A Taxpayer B

facility or qualified juvenile facility in which you are employed and teach . . . . . . . 1. 1.

2. Enter amount of tuition paid to: . . . . . . . . . . . . . . . . 2. 2.

Name of Institution(s)

3. Enter amount of tuition reimbursement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 3.

4. Subtract line 3 from line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4. 4.

5. Maximum credit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

1500 00

6. Enter the lesser of line 4 or line 5 here. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6. 6.

7. Total (Add amounts from line 6, for Taxpayers A and B) Enter here and

on Part AA, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

1. Enter the amount paid to purchase an aquaculture oyster float(s)

Enter here and on Part AA, line 4. This credit is limited. See Instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART E - LONG-TERM CARE INSURANCE CREDIT: (THIS IS A ONE-TIME CREDIT.)

Answer the questions and see instructions below before completing Columns A through E for each person

for whom you paid long-term care insurance premiums.

Question 1 - Did the insured individual have long-term care insurance prior to July 1, 2000?

. . . . . . . . . . . . . . . . . . . . . . . .

Yes No

Question 2 - Is the credit being claimed for the insured individual in this year by any other taxpayer?. . . . . . . . . . . . . . . . . . Yes No

Question 3 - Has credit been claimed by anyone for the insured individual in any other tax year? . . . . . . . . . . . . . . . . . . . . Yes No

Question 4 - Is the insured individual for whom the credit is being claimed a nonresident of Maryland? . . . . . . . . . . . . . . . . . Yes No

If you answered YES to any of the above questions, that insured person does NOT qualify for the credit.

Complete Columns A through D only for insured individuals who qualify for credit. Enter in Column E the lesser of the amount of premium paid for

each insured person or: • $420 for those insured who are 40 or less, as of 12/31/18

• $500 for those insured who are over age 40, as of 12/31/18.

Add the amounts in Column E and enter the total on line 5 (total) and on Part AA, line 5.

Column A

Column B Column C Column D Column E

Name of Qualifying Insured

Age

Social Security No. Relationship to Amount of Premium Paid Credit Amount

Individual

of Insured Taxpayer

1. 1.

2. 2.

3. 3.

4. 4.

TOTAL

PART F - CREDIT FOR PRESERVATION AND CONSERVATION EASEMENTS

PTE members may not use the Form 502CR to claim this credit.

Taxpayer A Taxpayer B

1. Enter the portion of the total current-year conveyance amount, and any

carryover from prior year(s), attributable to each taxpayer . . . . . . . . . . . . . . . . . 1. 1.

2. Enter the amount of any payment received for the easement by each

taxpayer during 2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2. 2.

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3. 3.

4. Enter the amount from line 21 of Form 502; line 32c of Form 505; line 33 of

Form 515; line 13 of Form 504 or $5,000, whichever is less. See instructions . . . 4. 4.

5. Enter the lesser of line 3 or 4 here. (If you itemize deductions,

see Instruction 14.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5. 5.

6. Total (Add amounts from line 5 for Taxpayers A and B.). Enter here and on Part AA, line 6 . . . . . . . . . . . . . . . 6.

7. Excess credit carryover. Subtract line 6 from the sum of lines 3A and 3B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

MARYLAND

FORM

502CR

INCOME TAX CREDITS

FOR INDIVIDUALS

Attach to your tax return.

COM/RAD-012

2018

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11111

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NAME SSN

PART G - VENISON DONATION - FEED THE HUNGRY ORGANIZATIONS TAX CREDIT

1. Enter the amount up to $50 per deer of qualified expenses to butcher and process an antlerless deer for human

consumption. Enter here and on Part AA, line 7. This credit is limited. See Instructions.

Number of antlerless deer donated

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

PART H – COMMUNITY INVESTMENT TAX CREDIT ** must attach required certification

This credit is limited to individual taxpayers who have elected not to claim this credit on Form 500CR. If you have an Excess Carryover on Form

500CR attributable to any credit other than the Community Investment Tax Credit (CITC), you are not eligible to claim the CITC on Form 502CR.

You must use Form 500CR. Also, PTE members may not elect to use Form 502CR to claim the CITC.

1. Enter the amount of Excess CITC Carryover from 2017. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Amount of approved contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter 50% of line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount from line 3 or $250,000, whichever is less. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Add line 1 and line 4. Enter the result here and on Part AA, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

PART I – ENDOW MARYLAND TAX CREDIT **must attach required certification

This credit is limited to individual taxpayers who have elected not to claim this credit on Form 500CR.

1. Enter the amount of Excess Endow Maryland Tax Credit Carryover from 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Amount of approved donation to a qualified permanent endowment fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter 25% of line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount from line 3 or $50,000, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Add line 1 and line 4. Enter the result here and on Part AA, line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Note: Line 2 of Part I requires an addition to income. See Instruction 12.

PART J – PRECEPTORS IN AREAS WITH HEALTH CARE WORKFORCE SHORTAGES TAX CREDIT ** must attach

required certification

1. Physician Preceptorship Tax Credit: Enter amount certified by Maryland Department of Health

(See Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Nurse Practitioner Preceptorship Tax Credit: Enter amount certified by Maryland Department of Health

(See Instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Add line 1 and line 2. Enter the result here and on Part AA, line 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

PART K - INDEPENDENT LIVING TAX CREDIT ** must attach required certification

1. Credit (certified by the Maryland Department of Housing and Community Development)

Enter here and on Part AA, line 11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART AA - INCOME TAX CREDIT SUMMARY

1. Enter the amount from Part A, line 13 (If more than one state, see Instructions.) . . . . . . . . . . . . . . . . . . . . . . . . 1.

2. Enter the amount from Part B, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.

3. Enter the amount from Part C, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.

4. Enter the amount from Part D, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.

5. Enter the amount from Part E, line 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Enter the amount from Part F, line 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

7. Enter the amount from Part G, line 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.

8. Enter the amount from Part H, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.

9. Enter the amount from Part I, line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.

10. Enter the amount from Part J, line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.

11. Enter the amount from Part K, line 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.

12. Total (Add lines 1 through 11.) Enter this amount on line 24 of Form 502; line 14 of Form 504;

line 34 of Form 505 or line 35 of Form 515 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.

PART BB – LOCAL INCOME TAX CREDIT SUMMARY

1. Enter the amount from Part A, line 14 (If more than one state, see Instructions.) . . . . . . . . . . . . . . . . . . . . . . . . 1.

Enter this amount on line 31 of Form 502; line 19 of Form 504.

MARYLAND

FORM

502CR

INCOME TAX CREDITS

FOR INDIVIDUALS

Attach to your tax return.

COM/RAD-012

2018

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PART CC- REFUNDABLE INCOME TAX CREDITS

1. Student Loan Debt Relief Tax Credit (See Instructions.). Enter the amount and attach certification. . . . . . . . . .

2. Heritage Structure Rehabilitation Tax Credit (See Instructions for Form 502S). Attach certification(s).. . . . . . . . 2.

3. Refundable Business Income Tax Credit (See Instructions for Form 500CR.) You must file your return electronically to

claim a business income tax credit.

4. IRC Section 1341 Repayment Credit. (See Instructions and Administrative Release 40.) Attach documentation . .

5. Flow-through Nonresident PTE tax (See Instructions for required attachments.) . . . . . . . . . . . . . . . . . . . . . . . . 5.

6. Total. (Add lines 1 through 5.) Enter this amount on line 43 of Form 502, line 46 of Form 505

or line 51 of Form 515. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.

MARYLAND

FORM

502CR

INCOME TAX CREDITS FOR

INDIVIDUALS INSTRUCTIONS

2018

Page 1

GENERAL INSTRUCTIONS

Purpose of Form. Form 502CR is used to claim personal income

tax credits for individuals (including resident duciaries).

You may report the following tax credits on this form: the Credit

for Income Taxes Paid to Other States and Localities, Credit for

Child and Dependent Care Expenses, Quality Teacher Incentive

Credit, Credit for Aquaculture Oyster Floats, Long-Term Care

Insurance Credit, Credit for Preservation and Conservation

Easements, Venison Donation Tax Credit, Community

Investment Tax Credit, Endow Maryland Tax Credit, Preceptors

in Areas with Health Care Workforce Shortages Tax Credit,

Independent Living Tax Credit, Student Loan Debt Relief Tax

Credit, Heritage Structure Rehabilitation Tax Credit, IRC Section

1341 Repayment Credit and Flow-Through Nonresident PTE Tax.

You must le Form 500CR electronically to claim a business

income tax credit other than the Community Investment Tax

Credit and Endow Maryland Tax Credit.

The Student Loan Debt Relief Tax Credit, the Heritage Structure

Rehabilitation Tax Credit and/or certain business tax credits

from Form 500CR and the IRC Section 1341 Repayment Credit

are refundable. All of the other credits may not exceed the state

income tax.

Excess credit for the Preservation and Conservation Easements

Tax Credit, Community Investment Tax Credit and Endow

Maryland Tax Credit may be carried forward to the next tax year.

Excess amounts of the other credits cannot be carried forward.

Note: Resident duciaries may use Form 502CR to claim

only a credit for income taxes paid to other states and/

or localities or a Credit for Preservation and Conservation

Easements.

Name and Other Information. Type or print the name(s) as

shown on Form 502, 505, 515 or 504 in the designated area.

Enter the Social Security number for each taxpayer.

Form 502CR must be attached to the annual return (Form

502, 504, 505 or 515).

PART A - CREDIT FOR INCOME TAXES PAID TO OTHER

STATES AND LOCALITIES

See Administrative Release #42 for detailed instructions on

completing Part A.

PART B - CREDIT FOR CHILD AND DEPENDENT CARE

EXPENSES

If you are eligible for a Child and Dependent Care Credit on

your federal income tax return for tax year 2018, you may be

entitled to a credit on your Maryland state income tax return.

The credit starts at 32.5% of the federal credit allowed, but is

phased out for taxpayers with federal adjusted gross incomes

above $41,000 ($20,500 for individuals who are married, but

le separate income tax returns). No credit is allowed for an

individual whose federal adjusted gross income exceeds $50,000

($25,000 for married ling separately). Use the CREDIT FOR

CHILD AND DEPENDENT CARE EXPENSES CHART to determine the

decimal amount to be entered on line 3 of Part B.

PART C - QUALITY TEACHER INCENTIVE CREDIT

If you are a qualied teacher, you may be able to claim a credit

against your State tax liability for tuition paid to take graduate-

level courses required to maintain certication. This credit

applies to individuals who:

a. Currently hold a standard professional certicate or

advanced professional certicate;

b. Are employed by a county/city board of education in

Maryland, a state or local correctional facility, or a juvenile

correctional facility as listed below in the note;

c. Teach in a public school or qualied facility and receive a

satisfactory performance;

d. Successfully complete the courses with a grade of B or

better; and

e. Have not been fully reimbursed by the state/county/city for

these expenses.

Only the unreimbursed portion qualies for the credit.

Each spouse that qualies may claim this credit. Complete a

separate column in the worksheet for each spouse.

NOTE: Qualied juvenile facilities are: the Alfred D. Noyes

Children's Center; the Baltimore City Juvenile Justice Center; the

Charles H. Hickey, Jr. School; the Cheltenham Youth Facility; the

J. DeWeese Carter Center; the Lower Eastern Shore Children's

Center; the Thomas J. S. Waxter Children's Center; the Victor

Cullen Center; the Western Maryland Children's Center; and the

youth centers.

INSTRUCTIONS

Line 1 Enter the name of the Maryland public school system or

State or local correctional facility or qualied juvenile

facility in which you are employed and teach.

Line 2 Enter the amount of tuition paid for graduate-level

courses for each qualifying teacher and the name of the

institution(s) to which it was paid.

Line 3 Enter the amount received as a reimbursement for

tuition from your employer.

Line 5 The maximum amount of credit allowed is $1,500 for

each qualifying individual.

Line 6 The credit is limited to the amount paid less any

reimbursement up to the maximum amount allowed for

each qualifying individual. Enter the lesser of line 4 or

line 5.

Line 7 Enter the total of line 6, for Taxpayers A and B. Also

enter this amount on Part AA, line 3.

PART D - CREDIT FOR AQUACULTURE OYSTER FLOATS

A credit is allowed for 100% of the amounts paid to purchase

new aquaculture oyster oats that are designed to grow oysters

at or under an individual homeowner’s pier. The devices must

be buoyant and assist in the growth of oysters for the width of

the pier. In the case of a joint return, each spouse is entitled to

claim the credit, provided each spouse purchases or contributes

to the purchase of a oat. The credit amount is limited to the

lesser of the individual’s state tax liability for that year or the

maximum allowable credit of $500. In the case of a joint return,

each spouse must calculate his/her own state tax liability for

limitation purposes.

PART E - LONG-TERM CARE INSURANCE CREDIT

A one-time credit may be claimed against the state income

tax for the payment of qualied long-term care (LTC) insurance

premiums as dened by the IRS (Publication 502) for a policy

to insure yourself, or your spouse, parent, stepparent, child or

stepchild, who is a resident of Maryland.

A credit may not be claimed if:

a. The insured was covered by LTC insurance prior to July 1,

2000;

b. The credit for the insured is being claimed in this year by

another taxpayer;

c. The credit is being or has been claimed by anyone in any

other tax year; or

MARYLAND

FORM

502CR

INCOME TAX CREDITS FOR

INDIVIDUALS INSTRUCTIONS

2018

Page 2

d. The insured is a nonresident of Maryland.

The credit is equal to the LTC premiums paid with a maximum

per insured of:

Amount Age of Insured as of 12/31/18

$420 40 or less

$500 over 40 years

SPECIFIC INSTRUCTIONS

• Answer Questions 1 through 4. If you answered “yes” for any

of the questions, no credit is allowed for that individual.

• Complete Columns A through D of the worksheet for each

qualifying insured individual who qualies for the credit. If

more space is required, attach a separate statement.

• Enter in Column E the amount of premiums paid for each

qualifying insured individual up to the maximum for that age

group.

• Add the amounts in Column E and enter the total on line 5.

Also enter this amount on Part AA, line 5.

PART F - CREDIT FOR PRESERVATION AND

CONSERVATION EASEMENTS

Businesses or individuals may be eligible for a credit for an

easement conveyed to the Maryland Environmental Trust, the

Maryland Agricultural Land Preservation Foundation or the

Maryland Department of Natural Resources to preserve open

space, natural resources, agriculture, forest land, watersheds,

signicant ecosystems, viewsheds or historic properties if:

1. the easement is perpetual;

2. the easement is accepted and approved by the Board of

Public Works; and

3. the fair market value of the property before and after the

conveyance of the easement is substantiated by a certied

real estate appraiser.

Individuals who are eligible to claim the Credit for Preservation

and Conservation Easements and who are not PTE members

must claim this credit on Part F of the Form 502CR. PTE members

who are eligible for this credit must claim the credit on Business

Income Tax Credit Form 500CR.

The credit is equal to the difference in the fair market values of

the property reduced by payments received for the easement.

If the property is owned jointly by more than one individual,

such as a married couple, each individual owner is entitled

to the credit based on their percentage of ownership. The

credit amount is limited to the lesser of the individual’s state tax

liability for that year or the maximum allowable credit of $5,000,

per owner, who qualies to claim the credit. Complete a separate

column in the worksheet for each spouse. In the case of a joint

return, each spouse must calculate their own state tax liability

for limitation purposes. Use the rules for ling separate returns

in Instruction 8 in the Resident booklet to calculate each spouse’s

Maryland tax. In the case of a duciary return, the duciary will

complete the column for Taxpayer B only.

If the individual’s allowable credit amount exceeds the maximum

of $5,000, up to $5,000 can be carried forward each subsequent

year until the allowable credit is used up or 15 years, whichever

rst occurs.

Complete lines 1-7 of Part F. If you itemize deductions, see

Instruction 14 in the Resident booklet. For line 1, enter the

amount by which the fair market value of the property before

the conveyance of the easement exceeds the fair market value

after the conveyance as substantiated by a certied real estate

appraiser, plus any carryover from the prior year.

The carryover amount can be found on Part F, line 7 of Form

502CR for tax year 2017.

For additional information, contact the Maryland Environmental

Trust at 410-514-7900, www.dnr.state.md.us/met, the

Maryland Agricultural Land Preservation Foundation at 410-841-

5860, or the Department of Natural Resources at 410-260-8367.

PART G – VENISON DONATION - FEED THE HUNGRY

ORGANIZATIONS TAX CREDIT

Individuals who hunt and harvest an antlerless deer in

compliance with State hunting laws and regulations, and donate

the processed meat to a venison donation program administered

by an IRC section 501(c)3 tax exempt organization, may claim

a credit against their State personal income tax for up to $50 of

qualied expenses to butcher and process an antlerless deer for

human consumption. The total amount of the credits may not

exceed $200 in any taxable year unless the individual harvested

each deer in accordance with a deer management permit. Any

unused portion of the qualied expenses may not be carried over

to another taxable year. No credit may be earned for any tax

year beginning on or after January 1, 2023.

PART H - COMMUNITY INVESTMENT INCOME TAX

CREDIT

Businesses or individuals who contribute to approved Community

Investment Programs may be eligible for a credit against the

Maryland State income tax. Contributions must be made to a

nonprot organization approved by the Department of Housing

and Community Development (DHCD). The taxpayer must apply

to and receive approval by the DHCD for each contribution for

which a credit is claimed.

CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES CHART

If your filing status is Married Filing Separately and

your federal adjusted gross income is:

Decimal Amount

For all other filing statuses, if your federal

adjusted gross income is:

At Least

But less than At least But less than

$0-

$20,501 .3250 $0 $41,001

$20,501

$21,001 .2925 $41,001 $42,001

$21,001

$21,501 .2600 $42,001 $43,001

$21,501

$22,001 .2275 $43,001 $44,001

$22,001

$22,501 .1950 $44,001 $45,001

$22,501

$23,001 .1625 $45,001 $46,001

$23,001

$23,501 .1300 $46,001 $47,001

$23,501

$24,001 .0975 $47,001 $48,001

$24,001

$24,501 .0650 $48,001 $49,001

$24,501

$25,001 .0325 $49,001 $50,001

$25,001 or over .0000 $50,001 or over

MARYLAND

FORM

502CR

INCOME TAX CREDITS FOR

INDIVIDUALS INSTRUCTIONS

2018

Page 3

Individuals who are eligible to claim the Community Investment

Tax Credit (CITC), and who are not PTE members may elect to

claim this credit on Part H of Form 502CR, instead of claiming

the credit on Form 500CR. However, an individual may not claim

this credit on both Form 500CR and Form 502CR. PTE members

who are eligible for this credit must claim the credit on Business

Income Tax Credit Form 500CR.

Individuals who anticipate having a carryover of the CITC are

advised to use Form 500CR instead of Form 502CR. Individuals

who have an existing carryover on their 2017 Form 500CR may

elect to use Form 502CR if their Excess Carryover Credit is

attributable only to the CITC.

The credit is limited to 50% of the approved contributions

(including real property) not to exceed $250,000.

NOTE: A copy of the required approval from the DHCD must be

included with Form 502CR.

SPECIFIC INSTRUCTIONS

Line 1 Enter the amount of excess CITC carryover from 2017.

Line 2 Enter the amount of approved contributions on line 2.

Line 3 Enter 50% of line 2.

Line 4 Enter the amount from line 3 or $250,000, whichever is

less.

Line 5 Add line 1 and line 4. Enter the result on line 5 and on Part AA,

line 8.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned in

any year and it exceeds the State income tax, you are entitled to

an excess carryover of the credit until it is used or it expires ve

years after the credit was earned, whichever comes rst.

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21202

410-209-5800

citc.nr@mdhousing.org

PART I – ENDOW MARYLAND INCOME TAX CREDIT

A taxpayer who makes a donation to a qualied permanent

endowment fund at an eligible community foundation may be

eligible for a credit against the Maryland State income tax. The

taxpayer must apply to the Maryland Department of Housing

and Community Development (DHCD) for a certication for the

donation. This certication must be attached to the Form 502CR

at the time the Maryland income tax return is led.

Individuals who are eligible to claim the Endow Maryland income

tax credit, and who are not PTE members may elect to claim this

credit on Part I of Form 502CR, instead of claiming the credit on

Form 500CR. However, an individual may not claim this credit

on both Form 500CR and Form 502CR. PTE members who are

eligible for this credit must claim the credit on Business Income

Tax Credit Form 500CR.

Individuals who anticipate having a carryover of the Endow

Maryland income tax credit are advised to use Form 500CR,

instead of Form 502CR.

The credit is limited to 25% of the approved donation (in cash or

publicly traded securities) not to exceed $50,000.

NOTE: A copy of the required approval from the DHCD must be

included with Form 502CR.

SPECIFIC INSTRUCTIONS

Line 1 Enter the amount of excess Endow Maryland Income Tax

Credit carryover from 2017.

Line 2 Enter the amount of approved donation to a qualied

permanent endowment fund.

Line 3 Enter 25% of line 2.

Line 4 Enter the amount from line 3 or $50,000, whichever is

less.

Line 5 Add line 1 and line 4. Enter the result on line 5 and on Part AA,

line 9.

This credit is not refundable and is applied only against the

Maryland State income tax. To the extent the credit is earned in

any year and it exceeds the State income tax, you are entitled to

an excess carryover of the credit until it is used, or it expires ve

years after the credit was earned, whichever comes rst.

NOTE: The amount of donation shown on line 2 requires an

addition to income. See Instruction 12 in the Maryland Resident

Instruction Booklet.

For more information contact:

Department of Housing and Community Development

Division of Neighborhood Revitalization

2 N. Charles St., Suite 450

Baltimore, MD 21202

410-209-5800

endowmaryland.nr@maryland.gov

PART J – PRECEPTORS IN AREAS WITH HEALTH CARE

WORKFORCE SHORTAGES TAX CREDIT

If you are a qualied licensed physician or a qualied nurse

practitioner who served without compensation as a preceptor,

you may be eligible to claim a nonrefundable credit against your

State tax liability. There are two credits for qualied preceptors.

The rst credit on line 1 is only available for licensed physicians.

The second credit on line 2 is available for both licensed

physicians and nurse practitioners.

A licensed physician who served as a physician preceptor in

a preceptorship program authorized by an accredited medical

school in Maryland may claim a credit on line 1 in the amount of

$1,000 for each student for whom the licensed physician served

as a physician preceptor without compensation. For purposes of

claiming the credit on line 1, “preceptorship program” means an

organized system of clinical experience that, for the purpose of

attaining specied learning objectives, pairs an enrolled student

of a liaison committee on medical education-accredited medical

school in Maryland or an individual in a postgraduate medical

training program in Maryland with a licensed physician who

meets the qualications as a preceptor. To qualify for the credit,

the licensed physician must have worked in an area of Maryland

identied as having a health care workforce shortage by the

Maryland Department of Health (MDH). The licensed physician

must have worked a minimum of three rotations, each consisting

of 160 hours of community-based clinical training. The amount

of this credit may not exceed $10,000.

A nurse practitioner or licensed physician who served as a

preceptor in a preceptorship program approved by the Maryland

Board of Nursing may claim a credit on line 2 in the amount

of $1,000 for each nurse practitioner student for whom the

nurse practitioner or licensed physician served as a preceptor

without compensation. For purposes of claiming the credit on

line 2, “preceptorship program” means an organized system of

clinical experience that, for the purpose of attaining specied

learning objectives, pairs a nurse practitioner student enrolled in

a nursing education program that is recognized by the Maryland

MARYLAND

FORM

502CR

INCOME TAX CREDITS FOR

INDIVIDUALS INSTRUCTIONS

2018

Page 4

Board of Nursing with a nurse practitioner or licensed physician

who meets the qualications as a preceptor. To qualify for the

credit, a nurse practitioner or licensed physician must have

worked in an area of Maryland identied as having a health

care workforce shortage by the Maryland Department of Health.

The nurse practitioner or licensed physician must have worked

a minimum of three rotations, each consisting of at least 100

hours of community-based clinical training. The amount of this

credit may not exceed $10,000.

Eligibility for these credits is limited to funds budgeted.

Applicants seeking certication will be approved on a rst-come,

rst-served basis. Go to the Maryland Department of Health

website at health.maryland.gov for more information.

INSTRUCTIONS

Line 1 Enter on line 1 the amount of the tax credit certied by

MDH for a licensed physician who served as a physician

preceptor in a preceptorship program, paired with

enrolled student(s) of a liaison committee on medical

education-accredited medical school in Maryland or an

individual in a postgraduate medical training program in

Maryland

Line 2 Enter on line 2 the amount of the tax credit certied by

MDH for a nurse practitioner or licensed physician who

served as a preceptor in a preceptorship program, paired

with nurse practitioner student(s) enrolled in a nursing

education program recognized by the Maryland Board of

Nursing.

Line 3 Add line 1 and line 2. Enter the result on line 3 and on

Part AA, line 10. This credit is limited to the State tax.

There is no carryover to another year.

NOTE: A copy of the required certication from the Maryland

Department of Health must be included with Form 502CR.

PART K – INDEPENDENT LIVING TAX CREDIT

An individual may claim a credit against their Maryland State

income tax equal to 50% of the qualied expenses incurred

during a taxable year to install accessibility and universal

visitability features to or within a home.

“Accessibility and universal visitability features” means

components of renovation to an existing home that improves

access to or within the home for individuals with disabilities.

“Qualied expenses” means costs incurred to install accessibility

and universal visitability features to or within a home.

For any taxable year, the credit may not exceed the lesser of: (i)

$5,000; or (ii) the State income tax imposed for the taxable year

calculated before the application of the credits allowed under §§

10–701, 10–701.1, and 10-741 of the Tax-General Article but

after the application of any other credit allowed.

The unused amount of the credit may not be carried over to any

other taxable year. The credit amount is limited to the lesser of

the individual's state tax liability for that year or the maximum

allowable credit of $5,000. The qualied expenses incurred

must be certied by the Maryland Department of Housing and

Community Development. To claim the credit, an individual

shall: (i) le an amended income tax return for the taxable year

in which the qualied expenses were incurred; and (ii) attach a

copy of the Maryland Department of Housing and Community

Development’s certication of the approved credit amount to the

amended income tax return.

For more information, contact:

Maryland Department of Housing and Community Development

7800 Harkins Road

Lanham, Md. 20706

301- 429 -7400

dhcd.maryland.gov/Pages/Contact-Us.aspx

customerservice.dhcd@maryland.gov

PART AA - INCOME TAX CREDIT SUMMARY

This part is to summarize Parts A through K. If the total from

Part AA, line 12 exceeds the state tax, the excess will not be

refunded.

PART BB - LOCAL TAX CREDIT SUMMARY

This part is to summarize the total local tax credit available from

Part A. If the total from Part BB, line 1 exceeds the local tax, the

excess will not be refunded. See the Instructions to Part A for

questions concerning credit claimed for taxes paid to multiple

states and/or localities.

PART CC - REFUNDABLE INCOME TAX CREDITS

Line 1 STUDENT LOAN DEBT RELIEF TAX CREDIT

The Student Loan Debt Relief Tax Credit may be claimed

by certain qualied taxpayers in the amount certied

by the Maryland Higher Education Commission. Note:

A copy of the required certication from the

Maryland Higher Education Commission must

be included with Form 502CR. “Qualied taxpayer”

means an individual who has incurred at least $20,000

in undergraduate and/or graduate student loan debt

and has at least $5,000 in outstanding undergraduate

and/or graduate student loan debt when submitting

an application for certication to the Maryland Higher

Education Commission. The amount of any tax credit

approved by the Maryland Higher Education Commission

may not exceed $5,000. The refundable tax credit must

be claimed against the State income tax for the taxable

year in which the Maryland Higher Education Commission

certies the tax credit.

Individuals applying for certication should submit an

application to the Maryland Higher Education Commission

by September 15th of each year. The Maryland Higher

Education Commission shall prioritize tax credit recipients

and amounts based on qualied taxpayers who:

(1) Have higher debt burden to income ratios;

(2) Graduated from an institution of higher education

located in Maryland;

(3) Did not receive a tax credit in a prior year; or

(4) Were eligible for in-state tuition.

Specic Instructions

Enter the amount of the certied tax credit by the

Maryland Higher Education Commission on line 1.

The total amount of the credit claimed under this section

shall be recaptured if the individual does not use the

credit approved under this section for the repayment of

the individual’s undergraduate and/or graduate student

loan debt within 2 years from the close of the taxable

year for which the credit is claimed. The individual who

claimed the credit shall pay the total amount of the credit

claimed as taxes payable to the State for the taxable

year in which the event requiring recapture of the credit

occurs.

MARYLAND

FORM

502CR

INCOME TAX CREDITS FOR

INDIVIDUALS INSTRUCTIONS

2018

Page 5

For more information contact:

Maryland Higher Education Commission

6 North Liberty Street

Baltimore, MD 21201

410-767-3300 or 800-974-0203

mhec.maryland.gov

Line 2 HERITAGE STRUCTURE REHABILITATION TAX

CREDIT

See instructions for Form 502S.

Line 3 REFUNDABLE BUSINESS INCOME TAX CREDITS

NOTE: You must le your income tax return

electronically to claim any of the refundable credits

listed below:

See Business Tax Credit Form 500CR Instructions

for qualications for the One Maryland Economic

Development Tax Credit, the Biotechnology Investment

Incentive Tax Credit, Clean Energy Incentive Tax Credit,

Small Business Relief Tax Credit, Film Production Activity

Tax Credit, Small Business Research and Development

Tax Credit, the Cybersecurity Incentive Tax Credit and

the Aerospace, Electronics, or Defense Contract Tax

Credit. You may download instructions from our Web site

at www.marylandtaxes.gov.

Line 4 IRC SECTION 1341 REPAYMENT CREDIT

If you repaid an amount this year reported as income on

a prior year federal return that was greater than $3,000,

you may be eligible for an IRC Section 1341 Repayment

credit. Attach documentation. For additional information,

see Administrative Release 40.

Line 5 FLOW-THROUGH NONRESIDENT PTE TAX

If you are the beneciary of a trust or a Qualied

Subchapter S Trust for which nonresident PTE tax was

paid, you may be entitled to a credit for your share of

that tax. Enter the amount on this line and attach both

the Maryland Schedule K-1 (504) for the trust and a copy

of the Maryland Schedule K-1 (510) issued to the trust

by the PTE.

If you are a member of a PTE for which nonresident tax

was paid, you may be entitled to a credit for your share

of that tax. Enter the amount on this line and attach

Maryland Schedule K-1 (510) issued to you and to the

partnership, limited liability company, or S Corporation,

by the PTE.

Line 6 Add lines 1 through 5. Enter the total on the appropriate

line of the income tax form being led.

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