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Tax on Form 510: 1065 Maryland (MD)

Maryland resident

No tax is computed if all partners are Maryland residents, partner types IRA, or Exempt Organization, or if
Exempt from tax
 is checked on entities in PDE.
If the PTE has no nonresident individuals or nonresident entities, taxes previously paid (estimates, extension, or taxes paid on behalf of the PTE by another PTE) can be refunded to the PTE, line 20.

Maryland nonresident

Maryland has a special nonresident tax that the PTE must pay on behalf of its nonresident individual members on Form 510. The special nonresident tax is equal to 1.75% of the nonresident individual member’s distributive or pro rata share of income allocable to MD.
Nonresident fiduciaries are regarded in the same manner as nonresident individual members. The nonresident tax (5.75% + 1.75%) must be paid on their behalf in the same manner as individuals.
Nonresident entities (Nonresident Corps and Partnerships) are subject to nonresident tax on the Form 510. The tax is equal to 8.25% of the nonresident entity’s distributive or pro rata share of income allocable to MD. To indicate that an entity is not subject to this tax, open
View
, then
Partner Information
, and on the
Maryland
 tab mark
Exempt from tax
.
Maryland has a special nonresident tax on the composite return. The special nonresident tax is equal to 1.75% multiplied by the distributive share of MD income for the composite partners. It is included in the MD Composite Partner Information report in the
Distributive Share of Tax Paid
 column.
Maryland allows a credit for nonresident tax paid on the PTE’s behalf by another PTE. Enter the
Nonresident tax paid by this entity
 on the Maryland Pmt screen, located in the Payments folder.
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