500UP (2D): Underpayment of Estimated Income Tax by Corporations and Pass-Through Entities (2D) (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 500UP calculates interest and penalties for corporations and pass-through entities that did not pay the required estimated income tax when due. It reports required estimated payments, payments made, underpayments, and the total interest and penalty.
Who files this form
Form 500UP is optional. Corporations and pass-through entities use it to calculate interest and penalties for not paying enough estimated Maryland income tax on time. If you do not use it, the Revenue Administration Division will calculate any interest and penalty and notify the entity of the balance due.
Estimated payments are required if the entity reasonably expects its Maryland taxable income to produce tax of more than $1,000 for the tax year or period.
No interest or penalty is due, and Form 500UP should not be filed, if:
- The current year's tax is $1,000 or less.
- Four timely payments each meet the 25% installment requirement and together total at least 90% of the current year's tax or 110% of the prior year's tax.
- The entity has a short tax period of less than four months.
When it's due
For tax year 2024, file Form 500UP, if used, by the original or extended filing deadline for Form 500, 510 or 511. The text does not give a specific calendar date for filing Form 500UP.
For calendar-year 2024 estimated payments:
- Corporations and S corporations: April 15, June 15, September 15 and December 15, 2024.
- Other pass-through entities: April 15, June 15 and September 15, 2024, with the fourth payment due January 15, 2025.
For fiscal-year entities using the 2024 form, installment due dates are the 15th day of the fourth, sixth, ninth and twelfth months. For pass-through entities other than S corporations, the fourth payment is due on the 15th day of the month following the close of the tax year.
What you'll need
Have the following information available:
- Your entity's name as shown on Form 500, 510 or 511 and its nine-digit Federal Employer Identification Number (FEIN).
- The beginning and ending dates of the tax year.
- Current-year and prior-year tax amounts from Form 500, 510 or 511, along with the credits listed on lines 1 and 3a of Form 500UP.
- Estimated payment amounts and payment dates, including any prior-year overpayment applied to estimated tax.
- Income received during each installment period, if a partnership or limited liability company elects to annualize.
If a FEIN has been applied for but not received, enter “APPLIED FOR” followed by the application date.
How to file
Review the instructions, enter the entity's identifying information and tax period, and complete lines 1 through 13.
Enter the total interest and penalty from line 13 on:
- Form 500, line 18;
- Form 510, line 19; or
- Form 511, line 16.
Attach Form 500UP to the applicable return and file with:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
The supplied text does not provide e-filing directions.
Common mistakes
- Skipping the instructions. The form specifically says to review them before completing it.
- Using the wrong tax-year version. The form's preprinted year must match the year in which the corporation's tax year begins.
- Using annualization for a corporation. Corporations may not use the annualization method.
- Using cumulative line 8 amounts to calculate the penalty. Line 12 instructions expressly say not to use those cumulative amounts.
- Filing Form 500UP separately. If used, it must be attached to Form 500, 510 or 511.
- Missing code 301 when it applies. If a pass-through entity's line 11 interest is zero because income was not received evenly throughout the year, enter code “301” on a code-number line on the front of Form 510 or 511 and attach Form 500UP.
Questions people ask
How much estimated tax is required?
The annual requirement is the lesser of 90% of the current year's tax or 110% of the prior year's tax, using the tax amounts and credit adjustments specified on the form. A first-time filer uses 90% of the current year's tax.
How do I enter installment amounts on line 6?
The general instructions call for cumulative amounts: one-quarter of line 4 in the first column, one-half in the second, three-quarters in the third and the full amount in the fourth. Partnerships and limited liability companies electing to annualize have separate instructions based on income received during each period.
When does an underpayment penalty apply?
A penalty applies for any quarter when timely payments are less than 50% of one-quarter of the annual estimated tax required on line 4. Add the underpayments for the applicable quarters, without using cumulative line 8 amounts, and multiply by 10%.
What if the entity has a short tax year?
For a short tax year, the minimum payment at each installment due date is the total estimated tax required divided by the number of installment due dates during that year. If the period is less than four months, the entity does not have to pay estimated tax or file Form 500UP.