Important Notice:  Maryland employers who have contracted with Accupay, Inc. for payroll services may contact Assistant Comptroller, Joe Shapiro, the Comptroller's designated taxpayer ombudsman, to determine whether they currently have any delinquent income tax withholding returns or outstanding withholding liabilities with the State of Maryland. Mr. Shapiro can be reached at 410-260-4020 or at jshapiro@comp.state.md.us.

The Comptroller’s Office will work with affected employers to bring their Maryland income tax withholding accounts into good standing. While interest and penalties will be waived, employers remain liable for unpaid withholding taxes. The Comptroller's Office will, however, establish payment plans for affected taxpayers as appropriate.

Based on valuable feedback from our tax professionals the information in this section has been reorganized. The links in the left menu and at the bottom of each page should more easily get you to the information that you need for each tax type or to complete a task. If you have bookmarked pages on our site, please remember to update them with the new links. As always we appreciate your feedback because it helps us to better serve you!

Employer Withholding Information

The 2013 Withholding Guide has been updated to include new local tax rates for counties which have a local rate between 2.3% and 2.4%.

Year End Reconciliations are due February 28, 2013.

Bulk Upload W-2s using our online application. You can also use our free bFile online service to file Withholding Returns, Withholding Reconciliations, and Sales and Use tax returns.

Tax Law Changes

2012 Legislative Summary

Updated Maryland Income Tax Rates and Brackets

Updated Maryland Income Tax Minimum Filing Requirements

See links for Administrative Releases, Tax Alerts, Tax Bulletins, etc. at left.

While further action following the Wynne case is being considered, taxpayers should be aware that the statute allows three years to file amended tax returns and taxpayers are advised to speak with a tax professional to determine whether the case affects them.

Earned Income Tax Credit Information

Effective January 1, 2012, the Comptroller shall publish the maximum income eligibility for State earned income tax credit (EITC) on or before January 1 of each calendar year. The Comptroller shall also notify employers of such information, and employers must notify each employee who may be eligible for the credit.

Updates to Tax Forms and Instructions

Form 502B has been revised to clarify handling of the exemptions for tax year 2012. Taxpayers claiming more than two dependents must use Form 502.

We have completely redesigned the paper version of the Sales and Use Tax coupon (Form 202) into a full-page, two column return. However, we are phasing the return in. Prior to November 2012, the paper coupon is used. After the November reporting period, the Form 202 becomes the standard form.

We have added barcodes to the 2013 withholding tax returns (MW506), and the accelerated withholding tax return (MW506M) to enhance processing of the document. In addition, a downloadable version that will contain a unique user-specific scan line is being developed.

New Subtractions

There are three new subtractions for tax year 2012 that can be claimed on Form 502SU and Form 505SU:

• Subtraction for a gain resulting from a payment from the Maryland Department of Transportation as a result of the acquisition of a portion of the property on which the principal residence is located
• Subtraction for qualified conservation expenses up to $500 for an application approved by the Department of Natural Resources to enter into a Forest and Conservation Management Plan
• Subtraction for a payment received as a result of a foreclosure settlement negotiated by the Maryland Attorney General

Tax Credits

The following tax credits are being phased out and have been removed from Form 510 Schedule K-1 and Form 500CR:

• Employment Opportunity Tax Credit
• Job Creation and Recovery Tax Credit
• Telecommunications Property Tax Credit

Tax Preparer's Web site

The Comptroller's Office has developed a tax preparer's online service center. The initial service provides Maryland resident tax preparers access to their clients’ 1099Gs if given authority to do so. Additional services will be added as they are developed.

State regulations require that paid preparers, who prepare individual Maryland income tax returns, register with the Maryland Department of Labor, Licensing and Regulation (DLLR), Division of Occupational and Professional Licensing. A valid Federal PTIN is the primary credential required for Maryland registration. Visit www.dllr.maryland.gov/license for more information on how to register, fees or exemptions.