COM/RAD-013
2017
Purpose of declaration The filing of a declaration of estimated
Maryland income tax is a part of the pay-as-you-go plan of
income tax collec tion adopted by the State. If you have any
income such as pensions, business income, lottery, capital
gains, interest, dividends, etc., from which no tax is withheld,
or wages from which not enough Maryland tax is withheld, you
may have to pay estimated taxes. The law is similar to the
federal law.
Who must file a declaration You must file a declaration of
estimated tax if you are required to file a Maryland income tax
return and
your gross income would be ex pected to develop a
tax of more than $500 in excess of your Maryland withholding.
You must file a declaration with payment in full within 60 days
of receiving $500 or more of income from awards, prizes,
lotteries or raffles, whether paid in cash or property if Maryland
tax has not been withheld. A married couple may file a joint
declaration. If you are filing a joint declaration, both Social
Security numbers must be entered. If filing on behalf of a
minor, the name and Social Security number of the minor must
be entered.
When to file a declaration You must pay at least one-fourth
of the total estimated tax on line 15 of this form on or before
April 15, 2017. The remaining quarterly payments are due
June 15, 2017, September 15, 2017 and January 15,
2018. You may pay the total estimated tax with your first
payment, if you wish. If you are filing on a fiscal year basis,
each payment is due by the 15th day of the 4th, 6th, 9th and
13th months following the beginning of the fiscal year.
Overpayment of tax If you overpaid your 2016 income tax
(Form 502 or 505), you may apply all or part of the
overpayment to your 2017
estimated tax. If the over payment
applied equals or exceeds the estimated tax liability for the
first quarterly payment, you are not required to file the
declaration. If the overpayment applied is less than the
estimated tax liability, you should file the declaration and pay
the balance of the first installment.
How to estimate your 2017 tax The worksheet is designed
to develop an estimate of your 2017 Maryland and local income
tax. Be as accurate as you can in forecasting your 2017
income. You may use your 2016 income tax as a guide, but if
you will receive more income than you did in 2016, you must
pay at least 110% of your prior year tax to avoid interest for
underpayment of estimated tax. For the purpose of estimating,
rounding all amounts to the nearest dollar is recommended.
Nonresidents who want to estimate 2017 Maryland taxes may
use the Nonresident Estimate Tax Calculator at
www.marylandtaxes.com.
Specific Instructions:
Line 1.
Total income expected in 2017 is your estimated
federal adjusted gross income.
Line 2.
Net modifications. You must add certain items to your
federal adjusted gross income. See Instruction 12 of the tax
instructions. You may subtract certain items from federal
adjusted gross income. See Instruction 13 of the tax
instructions. Enter on this line the net result of additions and
subtractions.
Line 4.
Deductions. You may compute your tax using the
standard deduction method or the itemized deduction method.
Standard deduction. Compute 15% of line 3.
If Filing Status 1, 3, 6: If the amount computed is less than
$1,500, enter $1,500; if the amount is between $1,500 and
$2,000, enter that amount; if the amount is more than $2,000,
enter $2,000.
If Filing Status 2, 4, 5: If the amount computed is less than
$3,000, enter $3,000; if the amount is between $3,000 and
$4,000, enter that amount; if the amount is more than $4,000,
enter $4,000.
Itemized deductions. Enter the total of federal itemized
deductions less state and local income taxes.
Line 6.
Personal exemptions. If your FAGI will be $100,000 or
less, you are allowed:
a. $3,200 each for taxpayer and spouse.
b. $1,000 each for taxpayer and spouse if age 65 or over
and/or blind.
c. $3,200 for each allowable dependent, other than
taxpayer and spouse. The amount is doubled for
allowable dependents age 65 or over.
If your FAGI will be more than $100,000, see chart below
to determine the amount of exemption you can claim for
items a and c above.
If Your federal AGI is
If you will le your tax return
Single or
Married Filing
Separately
Each
Exemption is
Joint, Head of
Household
or Qualifying
Widow(er)
Each
Exemption is
$100,000 or less $3,200 $3,200
Over
But not
over
$100,000 $125,000 $1,600 $3,200
$125,000 $150,000 $800 $3,200
$150,000 $175,000 $0 $1,600
$175,000 $200,000 $0 $800
In excess of
$200,000 $0 $0
Line 8.
Maryland income tax. Use the tax rate schedules below
to compute your tax on the amount on line 7.
For taxpayers filing as Single, Married Filing Separately, or as
Dependent Taxpayers. This rate also is used for taxpayers filing
as Fiduciaries.
Tax Rate Schedule I
If taxable net income is: Maryland Tax is:
At least: but not over:
$0 $1,000 2.00% of taxable net income
$1,000 $2,000 $20.00 plus 3.00% of excess over $1,000
$2,000 $3,000 $50.00 plus 4.00% of excess over $2,000
$3,000 $100,000 $90.00 plus 4.75% of excess over $3,000
$100,000 $125,000 $4,697.50 plus 5.00% of excess over $100,000
$125,000 $150,000 $5,947.50 plus 5.25% of excess over $125,000
$150,000 $250,000 $7,260.00 plus 5.50% of excess over $150,000
$250,000 -- $12,760.00 plus 5.75% of excess over $250,000
MARYLAND
FORM
502D
PERSONAL DECLARATION
OF ESTIMATED INCOME TAX
INSTRUCTIONS
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