505SU: Nonresident Subtractions (2025)
Maryland · Comptroller of Maryland · Used for tax years 2025
Maryland Form 505SU reports subtractions from income for your 2025 nonresident tax return. It lists income and expenses that may qualify for subtractions and directs you to prorate certain amounts to include only the part attributable to Maryland. Attach it to your nonresident ta
Who files this form
Use 2025 Maryland Form 505SU to report applicable subtractions from income and attach it to your Maryland nonresident tax return.
The form covers:
- Part I: Listed items included in your federal adjusted gross income, such as qualifying retirement benefits and certain other income.
- Part II: Listed subtractions that apply to your Maryland income. Prorate these to include only the Maryland portion.
- Part III: Your share of Maryland subtractions flowing through from a pass-through entity or fiduciary.
The form refers you to Instruction 13 in the Nonresident Booklet for more information about which subtractions apply.
What you'll need
The documents you need depend on the subtractions you claim. The form specifically calls for:
- Form 500DM: Complete and attach it for codes bb, cc, cd, da, dc, de, and dm.
- Form 502AE: Complete and attach it for qualifying artist income from arts and entertainment districts, code dd.
- Student loan discharge notice: Attach it for code nn.
- Certification copies: Attach them for enhanced agricultural management equipment, code l; farm products donated to a gleaning cooperative, code o; and the qualifying volunteer personnel program, code va.
- Form 502AC: Complete and attach it for a deductible artist's contribution, code m.
- Form 502V: Complete and attach it for unreimbursed charitable travel expenses, code q.
- Donation documentation: Attach it for qualifying diaper, hygiene product, and monetary donations, code xx.
Other information used on the form includes the separately listed W-2 amount for official police or fire vehicle use, Maryland Schedule K-1 (510/511) for Part III code b, and the Maryland Cannabis Administration business license or registration number for code yb.
How to file
- Enter your name and Social Security number, and your spouse's information where applicable. Print using blue or black ink only.
- Enter applicable Part I subtractions and add them on line 1.
- Enter applicable Part II subtractions, prorated to include only the Maryland portion, and add them on line 2. The form refers to page 8 of the Nonresident Instruction Booklet for proration guidance.
- Enter applicable pass-through entity or fiduciary subtractions in Part III and total them on line 3.
- Add lines 1, 2, and 3. Enter the total on line 4 and on line 23 of Form 505.
- Attach Form 505SU and any required supporting documents to your nonresident tax return.
The supplied form does not provide a mailing address or e-filing directions.
Common mistakes
- Claiming Part I items that were not included in federal adjusted gross income. Part I applies only to the extent the listed items were included.
- Skipping Maryland proration in Part II. Include only the portion attributable to Maryland.
- Putting IRC section 168(n) depreciation under code bb. The form says to report it under code dc instead.
- Subtracting electricity refunds that were not reported as federal income. Code yf excludes Legislative Energy Relief Refund amounts you did not report as income on your federal return.
- Leaving out required attachments. Include the forms, notices, certifications, or documentation specified for the subtractions you claim.
- Forgetting to transfer the total. Enter line 4 of Form 505SU on line 23 of Form 505.
Questions people ask
How much military retirement income can I subtract for 2025?
If you are at least 55 on the last day of the taxable year, code u allows up to $20,000 of military retirement income received during the year. If you are under 55 on that day, the limit is $12,500. Part I applies only to amounts included in federal adjusted gross income.
Can I subtract Social Security or Railroad Retirement benefits?
Code t lists Social Security, Tier I, Tier II, and supplemental Railroad Retirement benefits included in your federal adjusted gross income.
Is there a subtraction when both spouses have Maryland income?
Yes. Under code w, if both spouses have income subject to Maryland tax and file a joint return, the subtraction is the lesser of $1,200 or the lower-income spouse's income subject to Maryland tax.
Can I subtract a distribution from a Maryland ABLE account?
Code xc lists distributions to a designated beneficiary from a Maryland ABLE account, except refunds or non-qualified distributions. As a Part I item, it applies only to the extent included in federal adjusted gross income.