502UP: Underpayment of Estimated Maryland Income Tax by Individuals (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 502UP calculates an individual's underpayment of estimated income tax and any interest due for 2024. It compares required payments with estimated tax payments and Maryland tax withheld for each installment period.
Who files this form
Complete Form 502UP and submit it with your 2024 Maryland tax return if you believe you owe underpayment interest, or if you believe no interest is due because your income was received unevenly during the year.
Estimated tax payments and Form PV are required when income without enough Maryland withholding is expected to produce more than $500 in tax above the Maryland tax withheld.
Do not file Form 502UP if either exception applies:
- Your tax liability after subtracting Maryland withholding is $500 or less.
- You made four quarterly payments as required, each at least one-fourth of either 110% of last year's taxes or 90% of the current year's taxes.
You also do not need to file this form if at least 90% of your taxable income is taxable by another state and the underpayment is no greater than the local tax. Enter code 302 on Form 502, 505, or 515 to claim this exemption.
If you want Maryland to calculate the interest for you, file your return as usual without Form 502UP. You will be notified of any interest due.
When it's due
Estimated tax installment due dates printed for tax year 2024:
- First installment: April 15, 2024.
- Second installment: June 15, 2024.
- Third installment: September 15, 2024.
- Fourth installment: January 15, 2025.
Special deadlines for farmers and fishermen for tax year 2024: If farming or fishing provides at least two-thirds of your total estimated gross income for the year, file the declaration and pay the full estimated tax by January 15, 2025. Instead, you may file your full annual return and pay the full tax by March 1, 2025.
What you'll need
Have these returns and records available to complete the form:
- Your name and Social Security number, and your spouse's information if applicable.
- Your 2024 Maryland return, including the income, tax, and refundable credit amounts requested from Form 502 or 505, and Form 505NR if applicable.
- Your 2023 Form 502 or 505 and applicable Form 502CR credit information. Include any additional tax from a corrected or amended 2023 return.
- Income records for the periods shown on the form, including receipt dates if you use actual income timing.
- Records of estimated tax payments and Maryland tax withheld through each installment due date.
- Records of any nonresident tax paid on your behalf by an S corporation, partnership, or limited liability company.
- Form 502TP and the tax rates used on your return, if you have tax preference items.
How to file
Attach Form 502UP to your Maryland Form 502, 505, or 515 and submit it with your tax return.
- Complete lines 1 through 10 to determine the minimum required withholding and estimated tax payments.
- Complete lines 11 through 15 to determine the underpayment for each period.
- Complete lines 16 through 18 to calculate interest. Use an adjusted interest factor when the instructions call for one.
- Enter the total interest from line 18 in the appropriate box on line 49 of Form 502 or line 52 of Form 505. Include the interest in your total payment with the return.
If line 18 is zero because your income was received unevenly during the year, enter code 301 on a line marked “code numbers” on Form 502, 505, or 515 and attach Form 502UP.
Common mistakes
- Skipping the instructions. The form specifically asks you to review them before completing it, including the special rules for farmers, fishermen, and income taxable by another state.
- Leaving additional 2023 tax out of line 9a. If your 2023 tax was corrected or amended, include any additional tax when calculating the year's total.
- Using separate, rather than cumulative, amounts on lines 11 and 14. Each successive column must include amounts from the earlier columns.
- Using a later overpayment to cover an earlier underpayment. The instructions say later-quarter overpayments cannot offset earlier-quarter underpayments.
- Omitting code 301 when uneven income makes the interest zero. Enter the code on your return and attach Form 502UP.
Questions people ask
Can Maryland calculate the interest for me?
Yes. Complete your return as usual and do not file Form 502UP. Maryland will notify you of any interest due.
What if I received my income unevenly during the year?
You may report income using actual receipt dates. On line 11, enter income received from January 1 through March 31 in the first column, through May 31 in the second, through August 31 in the third, and all income in the fourth. If this results in zero interest on line 18, enter code 301 on your return and attach Form 502UP.
What do I enter on line 10 if I am a first-time filer?
Enter the amount from line 8. Otherwise, line 10 uses the smaller of line 8 or line 9b.
Are there special rules for farmers and fishermen?
Yes, if gross income from farming or fishing is at least two-thirds of total estimated gross income for the year. To claim exemption from the interest charge or use the special calculation, enter code 300 on Form 502, 505, or 515. Attach Form 502UP if you use the special calculation.
Where can I get help?
Visit marylandtaxes.gov, email TAXHELP@marylandtaxes.gov, or call 1-800-638-2937. From Central Maryland, you may call 410-260-7980.