505NR: Nonresident Income Tax Computation (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 505NR calculates a nonresident's Maryland taxable income and income tax using amounts from Form 505 or Form 515. It also calculates the special nonresident tax for Form 505 filers or local income tax for Form 515 filers and is attached to the tax return.
Who files this form
Use Form 505NR to calculate Maryland nonresident income tax with Form 505 or Form 515. Attach it to your tax return.
The form says you must file Form 515 if both of these apply:
- You are a nonresident employed in Maryland.
- You live in a local jurisdiction that imposes a local income or earnings tax on Maryland residents.
Form 515 filers pay local income tax instead of the special nonresident tax.
What you'll need
Have these available to complete Form 505NR:
- Form 505 or Form 515, with the income, subtraction, deduction, exemption and taxable net income amounts needed for the calculation.
- The Maryland tax table or Maryland Tax Computation Worksheet schedules.
- Your name and Social Security number, plus your spouse’s information if applicable.
- Your earned income amount, including any taxable scholarship included in federal adjusted gross income.
Form 515 filers also need Instruction 18 of the Form 515 instructions and the local tax rate for the Maryland county or Baltimore City where they work.
How to file
- Print using blue or black ink only.
- Complete the tax calculation and attach Form 505NR to your tax return.
- If filing Form 505, follow the instructions on page 2 of Form 505NR. Transfer line 16 to Form 505, line 32a, and line 17 to Form 505, line 32b.
- If filing Form 515, follow Instruction 18 in the Form 515 instructions. Transfer line 16 to Form 515, line 33, and line 18 to Form 515, line 39.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Including losses or income adjustments on line 6b. The instructions specifically exclude non-Maryland losses reported on lines 1 through 14 of column 3 and adjustments reported on line 16 of column 3. These should have been reported on Form 505 or 515, line 18, and included in Form 505NR, line 4.
- Counting income twice on line 6b. Do not include amounts already entered on lines 5 or 6a.
- Leaving out amounts the line 6b reminder says to include. If not already included on lines 5 or 6a, include Maryland salaries and wages if you are a resident of a reciprocal state, and income taxed as a resident when you must file both Forms 502 and 505.
- Using the wrong instructions with Form 515. The form directs Form 515 filers to Instruction 18 of the Form 515 instructions.
Questions people ask
When should I use the Tax Computation Worksheet instead of the tax table?
If taxable income on Form 505NR, line 1, is $50,000 or more, use the Maryland Tax Computation Worksheet schedules at the end of the tax table.
What counts as earned income on line 3a?
Earned income includes wages, salaries, tips, professional fees and other compensation for personal services you performed. It also includes scholarship amounts you must include in federal adjusted gross income.
Do I need to recalculate my standard deduction?
Yes. If you use the standard deduction, recalculate it based on Maryland adjusted gross income on line 8 and enter it on line 8a. Then multiply line 8a by the Maryland income factor on line 9 to calculate line 10a.
How is the special nonresident tax calculated?
Multiply Maryland taxable net income on line 13 by 0.0225 and enter the result on line 17 and Form 505, line 32b. If line 13 is zero or less, enter zero. Form 515 filers pay local income tax instead.