510C: Maryland Composite Pass-Through Entity Income Tax Return (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 510C is the 2024 Composite Pass-Through Entity Income Tax Return for eligible nonresident individual members who elect to be included. It reports their income, exemptions, deductions, Maryland tax, payments, and any balance due or refund.
Who files this form
Form 510C is an optional composite return that a pass-through entity (PTE) doing business in Maryland may file for eligible nonresident individual members who elect to participate and meet the requirements in Technical Bulletin 6.
The PTE must:
- Accurately report each participating member’s Maryland taxable income and tax liability.
- Attach Schedule A with all required member information.
- Pay the tax, interest and penalty due for each participating member.
Nonresident members other than individuals, including fiduciaries, cannot participate. A single-member entity cannot file a composite return. Eligible participating members may not be required to file separate Maryland nonresident returns.
What you'll need
Complete Form 510 before starting Form 510C.
Attach these documents to Form 510C:
- Form 510C Schedule A.
- The PTE’s Form 510 Schedule B, Part I, for individual members.
- The members’ Maryland Schedules K-1 (510/511) issued by the PTE.
For each participating member, Schedule A requires the full name, Social Security number, number of exemptions, exemption amount, standard deduction, share of decoupling modifications, income allocable to Maryland and share of nonresident withholding tax paid.
Have each member’s filing status, federal adjusted gross income and Maryland adjusted gross income available to determine exemptions and deductions. For direct deposit, provide the account type, routing number, account number and name on the bank account.
How to file
- Complete Form 510 first, then complete Form 510C and Schedule A. Print using blue or black ink only.
- Have an authorized general partner, officer or member sign and date the return and enter their title. If you use a preparer, the preparer must also sign and provide the required name, firm information and PTIN.
- Pay the total amount due when filing. Make a check or money order payable to Comptroller of Maryland. Write the PTE’s Federal Employer Identification Number, tax year and tax type on the payment in blue or black ink.
- Mail the completed return and required attachments to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, MD 21411-0001
Use Form EL102B to file an extension and make payment. If filing an amended return, check the Amended Return box on page 1.
Common mistakes
- Starting Form 510C before completing Form 510. The form specifically requires Form 510 to be completed first.
- Offsetting one member’s income with another member’s loss. This is not permitted. Enter zero in Schedule A, Column F, if a member’s amount is below zero.
- Claiming unsupported flow-through modifications. Only the modifications for Maryland’s decoupling from the additional depreciation allowance and special 2-year net operating loss carryback provisions may be claimed.
- Leaving identifying information off a payment. Omitting the FEIN, tax year or tax type will delay payment processing.
- Entering incorrect or unclear bank information. Verify that all account information is correct and legible. If the refund will go to an account outside the United States, check the appropriate box and do not enter routing or account numbers. A paper check will be sent instead.
- Missing the preparer’s signature or PTIN. The instructions warn that penalties may apply to preparers who omit them.
Questions people ask
What tax rate does Form 510C use?
The combined rate is 8%: a 5.75% Maryland tax rate plus the 2.25% special nonresident tax. Line 11 multiplies Maryland taxable income by 8%.
Are exemptions and standard deductions calculated separately for each member?
Yes. The exemption amount is determined separately based on each member’s filing status and may be limited by federal adjusted gross income. The standard deduction is determined separately based on each member’s Maryland adjusted gross income. Both are adjusted using the Maryland income factor described in the instructions.
Who receives an overpayment refund?
Any overpaid amount is refunded to the PTE.
Can the PTE request direct deposit?
Yes, for an account at a bank or other financial institution in the United States. Check the authorization box and complete lines 18a through 18d. Direct deposit is not available for an account outside the United States.
Where can I find more information about composite-return eligibility?
The instructions refer to Technical Bulletin 6, available at marylandtaxes.gov.