510/511 Schedule K-1: Maryland Pass-Through Entity Members Information (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Schedule K-1 (510/511) reports a pass-through entity member's share of income, Maryland additions and subtractions, credits, and taxes paid by pass-through entities. It also reports the member's share of withholding on nonresident sales of real property.
Who files this form
Pass-through entities (PTEs) use Maryland Schedule K-1 (510/511) to report each member’s share of income, additions, subtractions, taxes paid, and credits allocable to Maryland.
For tax year 2024, this schedule is used with both Form 510 and Form 511. It includes information for resident and nonresident members.
What you'll need
Have the following information and records available, as applicable:
- The member’s federal Schedule K-1, which supplies the income amount for Section A, line 1.
- The PTE’s name, address, and federal employer identification number (FEIN).
- The member’s name, address, SSN or FEIN, residency information, and percentage share.
- Maryland income, addition, and subtraction amounts for the member.
- Tax payment information from Form 510 or Form 511 for Section D.
- Business tax credit information from Form 500CR or Form 502S for Section E.
- Information about any withholding payment the PTE made for a nonresident sale of real property on the member’s behalf.
Attach the required documentation or certification for credits marked with three asterisks (***) in Section E.
How to file
The printed instructions give these electronic filing requirements for returns claiming or passing on credits:
- All taxpayers other than fiduciaries must file their return electronically to claim or pass on a business income tax credit from Form 500CR.
- Corporations and PTEs must file their returns electronically to claim or pass on a Heritage Structure Rehabilitation Tax Credit from Form 502S.
The supplied text does not give a mailing address or separate submission instructions for this schedule.
Common mistakes
- Putting the electing PTE credit addback in Section B. The instructions say not to include it there. The addback belongs on the member’s return.
- Missing the credit addback on the member’s return. Amounts reported in Section D, lines 2 and 4, must be added back on the member’s respective return.
- Leaving out credit attachments. Credits marked with three asterisks (***) require documentation or certification to be attached.
- Overlooking electronic filing requirements. Except for fiduciaries, taxpayers claiming or passing on Form 500CR business income tax credits must file electronically. Corporations and PTEs must also file electronically to claim or pass on the Form 502S Heritage Structure Rehabilitation Tax Credit.
Questions people ask
Does an electing PTE report Maryland-allocable income for resident members?
Yes. Electing PTEs must complete Section A, line 2, for both resident and nonresident members.
What goes on Section D, line 3?
Line 3 is reserved. The instructions explain that Form 510 overpayment refunds are issued at the entity level, and the amount previously reported on this line is no longer passed through to members.
When should Section F be completed?
Complete Section F only if the PTE made a withholding payment for a nonresident sale of real property on the member’s behalf.
What belongs in Section G?
Include descriptions and amounts for other additions reported in Section B, line 5, and other subtractions reported in Section C, line 5. Also include other information needed to complete the member’s return. A Maryland-licensed cannabis business claiming the subtraction for ordinary and necessary expenses disallowed on its federal return must include its state license number.