MARYLAND
FORM
510C
COMPOSITE PASS-THROUGH
ENTITY INCOME TAX
RETURN INSTRUCTIONS
COM/RAD-071
2019
GENERAL INSTRUCTIONS
Pass-through entities (PTEs) may use Form 510C to le a composite
income tax return on behalf of eligible nonresident individual members.
Nonresident members other than individuals may not participate in
the composite return. The Maryland tax of each nonresident individual
member is calculated using the rate of 5.75% plus the special nonresident
tax of 1.75%.
Note: A single member entity cannot le a composite return.
SPECIFIC INSTRUCTIONS
Who may use this form. Nonresident individual members of a PTE doing
business in the State who meet the composite return requirements contained
in Administrative Release 6 and elect to be included in a composite return
may not be required to le Maryland nonresident returns individually.
Instead, the PTE doing business in the State may le a composite return on
behalf of such nonresident individual members if:
1. Form 510C accurately reects the Maryland taxable income and tax
liability of each individual member shown on the return;
2. Form 510C Schedule A is attached containing all required information
for each individual member; and,
3. The PTE pays the tax, interest and penalty due by each individual
member shown on the return.
Any overpaid amount will be refunded to the PTE. For more
information, Administrative Release 6 may be obtained from our website at
www.marylandtaxes.gov.
Line 2 Enter the number of eligible nonresident individual members
who have elected to be included on this composite return.
Fiduciaries are not eligible and cannot be included.
Line 4 Enter the total exemption amount reported on Column C,
Form 510C Schedule A. The exemption amount allowed for
each nonresident individual member must be determined
separately based on the individual member’s ling status.
Generally, you are entitled to claim qualied exemptions on
the Maryland return. The amount of your Maryland exemption
may be limited by the amount of your federal adjusted gross
income. See Instruction 10 of Form 505, Maryland Nonresident
Income Tax Return to determine the exemption amount before
multiplying it by the Maryland income factor, which is the
nonresident’s Maryland adjusted gross income (generally from
Form 510C, Schedule A, Column F) divided by the nonresident’s
federal adjusted gross income (FAGI). If it is impracticable to
determine all of the separate Maryland income factors, then
the factor must be determined by using line 6 of Form 510 as
the numerator (excluding the portion applicable to nonresident
duciary members) and line 2 of Form 510 as the denominator
(See Administrative Release 6).
Line 5 Enter the total standard deduction amount reported on
Column D, Form 510C, Schedule A. The standard deduction
amount allowed for each nonresident individual member must
be determined separately based on the individual member's
Maryland adjusted gross income, and then prorated by the
nonresident’s Maryland income factor. See Instruction 15
of Form 505, Maryland Nonresident Income Tax Return
for determining the standard deduction amount. See the
instruction for line 4 for the nonresident individual member’s
Maryland income factor.
Line 7 Enter the total PTE ow-through decoupling modication
amount reported on Column E, Form 510C. No ow-
through addition or subtraction modications, other than the
modication required as a result of Maryland’s decoupling
from the additional depreciation allowance and special 2-year
net operating loss carryback provisions may be claimed on a
composite return.
Line 15 If there is a balance due on line 13, interest may be due as
result of late ling of Form 510C and payment of tax. Interest
is due at the rate of 10.5% annually or 0.8750% per month
for any month or part of a month that a tax is paid after
the original due date of the return through 12/31/20. The
annual interest rate will change after 12/31/20. For additional
information visit www.marylandtaxes.gov. The Maryland
Revenue Administration Division will calculate the interest and
penalty for failure to pay the required amount of tax and notify
the pass-through entity of any balance due.
Line 16 Total Balance Due. Add the amounts on lines 13 and 15 and
enter the result, or, if the amount on line 15 exceeds line 14,
enter the dierence. The total amount due must be paid with
the ling of Form 510C.
Schedule A Instructions. Complete the following for each eligible
nonresident individual member who has elected to be included on this
composite return.
Column A Member’s full name and Social Security Number.
Column B Member’s number of exemption allowance.
Column C Member’s exemption amount. See instruction for Form 510C,
line 4.
Column D Member’s standard deduction. See instruction for Form 510C,
line 5.
Column E Member’s share of decoupling modication ow-through from
the PTE. See instruction for Form 510C, line 7.
Column F Member's pro rata share of income allocable to Maryland. This
is generally the member's portion of what is reported on line
4 of Form 510. If amount is less than 0, enter 0. A PTE
ling a composite return is not permitted to oset one
member's income allocable to Maryland by a loss from
another member.
Column G Member’s pro rata share of the nonresident withholding tax
paid. This is the member’s portion of what is reported on line
16d and line 17 of Form 510.
Signature Verication. An authorized general partner, ocer or member
of the PTE must sign and date Form 510C and enter his or her title. If a
preparer is used, the preparer also must print name, sign the return and
enter the rm’s name, address and Preparer’s Tax Identication Number
(PTIN). Penalties may be imposed for tax preparers who fail to sign the tax
return and provide their Preparer’s Tax Identication Number.
Attachments and Mailing Instruction. Mail the completed return
and all required attachments to Comptroller of Maryland, Revenue
Administration Division, 110 Carroll Street, Annapolis, MD 21411-
0001. Must attach with Form 510C: (1) Form 510C Schedule A, (2) the
PTE’s Form 510 Schedule B, Part I for individual members; and (3) the
members’ Maryland Schedule K-1 (510) issued by the PTE.
Extension of Time to File. Use Form EL102B to le an extension and
make payment.
Amended Returns. If ling an amended return, check the Amended
Return box on page 1 of Form 510C.
Privacy Act Information. The Tax-General Article of the Annotated Code
of Maryland authorizes the Comptroller of Maryland to request information
on tax returns to administer the income tax laws of Maryland, including
determination and collection of correct taxes. Code Section 10-804
provides that you must include your Social Security Number on the return
you le. This is so we know who you are and can process your return. If
you fail to provide all or part of the requested information, then applicable
exemptions, credits, deductions or adjustments may be disallowed and
you may owe more tax. In addition, the law provides penalties for failing
to supply information required by law or regulations. You may look at
any records held by the Comptroller of Maryland which contain personal
information about you. You may inspect such records, and you have
certain rights to amend or correct them. As authorized by law, information
furnished to the Comptroller of Maryland may be given to the United States
Internal Revenue Service, a proper ocial of any state that exchanges tax
information with Maryland and to an ocer of this State having a right to
the information in that ocer’s ocial capacity. The information may be
obtained in accordance with a proper legislative or judicial order.
