The Maryland 515 form is specifically designed for nonresidents who are employed in Maryland but reside in certain jurisdictions of Delaware, New York, and Pennsylvania. These jurisdictions impose a local income or earnings tax on Maryland residents. The form allows these nonresidents to report their Maryland income and claim any applicable exemptions or credits.
You must file the Maryland 515 form if you meet several criteria. First, you should be a nonresident of Maryland. This means you do not have a permanent home in Maryland and did not live there for more than six months during the tax year. Additionally, you need to have received salary, wages, or other compensation for services performed in Maryland. If you reside in a jurisdiction that imposes a local income tax on Maryland residents and are required to file a federal return, you will need to file the Maryland 515 form.
If you are required to file the Maryland 515 form, you will be subject to local income tax on the portion of your federal adjusted gross income that comes from salary, wages, or other compensation for personal services performed in Maryland. This includes any income you earn while working in Maryland, even if you live in another state that also imposes its own income tax.
Your filing status on the Maryland 515 form should match the status you used on your federal tax return. Common statuses include Single, Married Filing Jointly, or Head of Household. If you are a dependent taxpayer, you will need to check a specific box indicating that status. It's important to select the correct status as it affects your tax calculations and exemptions.
Failing to file the Maryland 515 form can result in severe penalties. These may include criminal fines and even imprisonment for filing a false or fraudulent return. Additionally, interest will accrue on any unpaid taxes. The Comptroller of Maryland can also place liens against your wages or property to collect any delinquent taxes. Therefore, it is crucial to file accurately and on time.
6. How can I claim a refund if Maryland tax was withheld in error?
If Maryland tax was withheld from your income in error, you can claim a refund by filing the Maryland 515 form. You will need to complete the relevant sections of the form, including your federal adjusted gross income and details about the Maryland tax withheld. Attach any withholding statements, such as W-2 or 1099 forms, that show the amount withheld. It is important to file for a refund within three years of the original due date to ensure you receive it.