511: Maryland Pass-Through Entity Election Income Tax Return (2024)
Maryland · Comptroller of Maryland · Used for tax years 2024
Maryland Form 511 is the 2024 income tax return for pass-through entities that elect to remit tax on all members' shares of income. It reports income allocable to Maryland, calculates the election tax, and accounts for payments, credits, and any balance due or refund.
Who files this form
Maryland Form 511 is for pass-through entities (PTEs) that elect to pay tax on all members’ shares of income. The form lists S corporations, partnerships, limited liability companies and business trusts as entity types.
What you'll need
Have the following information and applicable supporting documents ready:
- Entity details: FEIN, organization or incorporation date, six-digit business activity code, mailing address and state of organization or incorporation.
- Member information for Schedule B: Names, addresses, Social Security numbers or FEINs, residency information, and each member’s share of income, tax paid and tax credits.
- Income and ownership information: Pass-through entity taxable income and members’ ownership percentages, or profit/loss percentages if applicable.
- Payment records: Estimated tax paid with Forms 510/511D and MW506NRS, and extension payments made with Form 510/511E.
- Maryland Schedule K-1 (510/511): Attach it if claiming credit for tax paid by another pass-through entity on line 13c.
- Applicable worksheets and schedules: The distributable cash flow limitation worksheet if used, and apportionment information for multistate entities. Schedule A requires attached schedules for other income and other tangible assets.
- For an amended return: Records of original and later tax payments and refunds already issued.
- For direct deposit: Account type, nine-digit routing number, account number and name on the bank account.
How to file
- Paper return: Print using blue or black ink only. Complete the signature section with the signature and title of a general partner, officer or member, and the date. A preparer other than the taxpayer must provide a signature and PTIN.
- Payment: Make your check or money order payable to Comptroller of Maryland. In blue or black ink, include the entity’s FEIN, tax year and tax type. The form marks where to staple the check.
- Electronic filing: You must file Form 511 electronically to pass business tax credits from Form 500CR and/or Form 502S to members.
Mail to:
Comptroller of Maryland
Revenue Administration Division
110 Carroll Street
Annapolis, Maryland 21411-0001
Common mistakes
- Leaving identifying information off a payment: The form warns that omitting the FEIN, tax year or tax type from your check or money order will delay payment processing.
- Entering incorrect or unclear bank details: Verify that all direct deposit information is correct and clearly legible.
- Filing on paper when passing through business tax credits: Form 511 must be filed electronically to pass credits from Form 500CR and/or Form 502S to members.
- Including ineligible members in a composite return: Nonresident entity and fiduciary members cannot file a composite return or be included in one filed by nonresident individual members.
- Completing tax calculation lines without a member entry: The form says to complete lines 5a through 19 only if there is an entry on lines 1a through 1d, and directs investment partnerships to the specific instructions.
Questions people ask
What tax rates does Form 511 use?
The form calculates the tax for individual members at 8% on line 7 and for entity members at 8.25% on line 9.
Can I receive a refund by direct deposit?
Yes. Check the direct deposit authorization box and provide the account type, routing number, account number and name on the bank account. Also check the separate box if the refund will go to an account outside the United States.
How should I organize members on Schedule B?
List individual members in Social Security number order. List fiduciary, pass-through entity and corporation members in FEIN order, using the separate parts provided for each group.
What if the IRS made adjustments that I have not reported to Maryland?
For adjustments covering a tax year in which a Maryland return was required, answer “Yes” to question 5 in the additional information section and identify the tax years. Submit amended returns with copies of the IRS adjustment reports under separate cover.
Can I let my preparer discuss the return with Maryland?
Yes. Check the authorization box in the signature and verification section.