![]() ![]() The addback is limited to $10,000 ($5,000 for married filing separately) and is reported on line 17b of the Maryland Form 502. The new federal limitation impacts your Maryland return because you must addback the amount of state income taxes you claimed as federal itemized deductions. You cannot claim more than $10,000 ($5,000 for married filing separately) for state and local taxes you paid. Limitation on deduction for state and local tax - Federal tax reform limited the amount you can deduct for state and local taxes. The Comptroller's Office encourages you to run your income tax returns under both deduction methods, and to compare the results of taking the standard deduction versus itemizing your deductions, to see which method causes the lowest overall tax liability. You may take the federal standard deduction, while this may reduce your federal tax liability, it may result in an increase to your Maryland income tax liability. Under current Maryland law, if you take the standard deduction the federal level, you cannot itemize at the Maryland level. ![]() Should I take the standard deduction or itemize? - The federal tax reform of 2017 significantly raised the federal standard deduction. This means that high-income taxpayers are not required to reduce their itemized deductions using the itemized deduction worksheet used in prior years. Itemized Deduction Limitation - The State of Maryland follows the new federal tax law treatment to suspend the itemized deduction limitation threshold (Pease Limitation). Standard Deduction - The tax year 2023 standard deduction is a maximum value of $2,550 for single taxpayers and to $5,150 for head of household, a surviving spouse, and taxpayers filing jointly. The additional exemption of $1,000 remains the same for age and blindness.ĭependent Form 502B - will be required to be attached to Form 502, Form 505 and Form 515 to determine what exemptions you are entitled to claim. See Instruction 10 in the Resident tax booklet for the reduced amounts, or review the page, Determine Your Personal Income Tax Exemptions. The $3,200 exemption is phased out entirely when the income exceeds $150,000 ($200,000 for joint taxpayers). Personal Exemption Amount - The exemption amount of $3,200 begins to be phased out if your federal adjusted gross income is more than $100,000 ($150,000 for joint taxpayers). There have been no changes affecting personal exemptions on the Maryland returns. ![]() Instructions for filing Electing pass-through entity income tax returns for the calendar year or any other tax year or period beginning in 2023. Maryland Income Tax Form Instructions for Electing Pass-Through Entities Instructions for filing pass-through entity income tax returns for the calendar year or any other tax year or period beginning in 2023. Maryland Income Tax Form Instructions for Pass-Through Entities Instructions for filing corporation income tax returns for the calendar year or any other tax year or period beginning in 2023. ![]() Maryland Income Tax Form Instructions for Corporations Instructions for filing fiduciary income tax returns.Ģ023 Business Income Tax Instruction Booklets Number Instructions for filing personal income tax returns for nonresident individuals. Instructions for filing personal state and local income taxes for full- or part-year Maryland residents. Maryland State and Local Tax Forms and Instructions 2023 Individual Income Tax Instruction Booklets Booklet They were capped at 50 percent, but now 100 percent of these costs can now be deducted so keep the receipts from any business meals.Note: For forms, visit the 2023 Individual Tax Forms or Business Tax Forms pages. There has been a change post-COVID-19 on business meals. 100 percent of those travel costs can be put down for deductions, including parking fees, entertainment, meals and business lodging. Many jobs require an element of travel, be that international or just meetings and events in the local area. Stationary, a computer, the printer, furniture, ink cartridges etc can all be deducted as they are essential to work and would normally be provided by an employer. The majority of people who work from home use some sort of equipment whilst they're doing so, and that can be put down as well. Tax Deduction Number Two: Office supplies The upkeep of the home office, a portion of home utilities, Wi-Fi, repairs and home insurance can all be put down as deductions. Millions have now found themselves working from home after the COVID-19 pandemic and that is where money can be saved. Tax Deduction Number One: Working from home They can save a small business a lot of money in the long run when it comes to taxes. There are some very common deductions that are completely legal but do not even cross some people's minds. ![]()
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