State and Local Tax Returns

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					Comptroller of the Treasury                                                                      BULK RATE
Revenue Administration Division                                                                 U.S. POSTAGE
Annapolis, Maryland 21411-0001                                                                     Paid
                                                                                             MARYLAND REVENUE
                                                                                           ADMINISTRATION DIVISION




                                   Maryland
1                                 State and Local
                                    Tax Returns


9
                         Filing booklet for personal income taxes for full- and part-year residents.




9                        • A complete list of forms included
                           appears inside the front cover.
                         • Information on changes and table
                           of contents inside front cover.
                         • See back cover for how to get
                           help with your taxes.




7
                         • See page 26 for your rights as a taxpayer.
                         • Index to instructions on
                           inside back cover.                                   Just ask about
                         • Talbot County residents: your                        ELECTRONIC
                             tax rate has changed for 1997.                                        for FAST
                             See instruction 19.                                FILING             Maryland
                                                                                                   tax refunds
                         •   One tax form covers both state
                             and local tax liability.                   See your commercial tax preparer
To Maryland Taxpayers
This booklet contains the forms and                           NEW                                                   REMINDERS
instructions you need to file your 1997
                                                              The income tax reduction enacted                      Your local income tax is collected on
resident or part-year resident Maryland
                                                              by the Maryland General Assembly                      line 62b of the state tax form as a
income tax return for state and local
                                                              begins in 1998. It does not affect the                convenience to local governments. Be
income taxes. Please read the instruc-
                                                              1997 forms in this booklet. But the tax               sure to use the correct rate for your
tions before preparing your return.
                                                              cut will affect taxpayers filing esti-                subdivision. See Instruction 19.
Do you even have to file? Many                                mated tax forms for 1998. See Form
                                                              502D.                                                 If you moved into or out of Mary-
retirees don’t – nor do many others,
                                                                                                                    land during 1997, you may have to
depending on their income level. See
                                                              Talbot County residents should note                   file as a part-year resident using long
Instruction 1.
                                                              that their local income tax rate has                  Form 502. See Instruction 26.
If you have to file, use the simplest                         been lowered to 40% for 1997. See
                                                              Instruction 19.                                       You can contribute again to two
possible form. Check Form 123 or
                                                                                                                    programs on your return: the
Form 503 in the front of this booklet to
                                                              Some individuals and businesses                       Chesapeake Bay and Endangered
see if you can use one of these
                                                              may qualify for new tax credits. See                  Species Trust Fund on line 63a and
shorter forms. Instruction 3 can help
                                                              Instruction 21 for more information.                  the Fair Campaign Financing Fund on
you choose the best form for you.
                                                                                                                    line 63b.
                                                              We’ve expanded your rights and
Your pre-printed address label is
                                                              privileges as a Maryland taxpayer.                    Please send us your original com-
included on the flap of this page. Use
                                                              See page 26.                                          pleted Maryland tax return. Unclear
the label to speed up your refund check.
                                                                                                                    photocopies will only delay the pro-
                                                                                                                    cessing of your refund check.
FORMS INSIDE
                                                                                                                    Need an extension? If you have no
Beginning on facing page:                                 s    Form 502D – Declaration of                           tax payment due but need more time
s   Form 123 – Special Refund Request                          Estimated Maryland Income                            to file, you can file your extension by
                                                               Tax for the Year 1998                                phone or at our web site. See the
s   Form 503 – Resident Maryland Tax
    Return (short form)
                                                          s    Form 502E – Application for                          back of this booklet.
                                                               Extension of Time to File
s   Form 502 – Resident Maryland Tax                                                                                Thanks for your cooperation. If you have
                                                          s    Form 502UP – Underpayment
    Return (long form)                                                                                              any suggestions about our service,
                                                               of Estimated Maryland Income                         please contact us by e-mail, telephone
Beginning after page 24 of the                                 Tax by Individuals
instructions:                                                                                                       or in writing. The addresses and num-
                                                          s    Notice regarding Homeowner’s                         bers are listed on the back cover. With
s   Form 502CR – Credit for Taxes Paid                         Property Tax Credit                                  best wishes for continued success,
    to Other States                                                                                                 good health and happiness, I am

    Just ask about                                                    for FASTER                                                                     Cordially yours,

    ELECTRONIC                                                        Maryland
                                                                      tax refunds
    FILING                                                                                                                                 Louis L. Goldstein
                                                                                                                                   Maryland State Comptroller
                See your commercial tax preparer

TABLE OF CONTENTS (by instruction and page number)
Instruction                                     Page      Instruction                                      Page     Instruction                                        Page
11. DO I HAVE TO FILE? . . . . . . . . . . . . . .1       16. FIGURE YOUR MARYLAND                                  27. SPECIAL INSTRUCTIONS FOR
12. USE OF FEDERAL RETURN . . . . . . . . .2                  TAXABLE INCOME . . . . . . . . . . . . . . . .9           MILITARY TAXPAYERS . . . . . . . . .           . . .13
13. FORM 502 OR 503? . . . . . . . . . . . . . . .2             s STANDARD DEDUCTION METHOD                         28. FILING RETURN OF DECEASED
14. MAILING LABEL . . . . . . . . . . . . . . . . . .2          s ITEMIZED DEDUCTION METHOD                             TAXPAYER . . . . . . . . . . . . . . . . . .   .   .   .14
15. PAID PREPARER . . . . . . . . . . . . . . . . .2      17. FIGURE YOUR MARYLAND TAX . . . . . .9                 29. AMENDED RETURNS . . . . . . . . . .            .   .   .15
16. COUNTY, CITY, TOWN INFORMATION .2                     18. EARNED INCOME CREDIT . . . . . . . . .10              30. PRIVACY ACT INFORMATION . . . .                .   .   .15
17. FILING STATUS . . . . . . . . . . . . . . . . . .3    19. LOCAL INCOME TAX . . . . . . . . . . . . . .10              s ASSEMBLING YOUR RETURN                     .   .   .16
18. SPECIAL INSTRUCTIONS FOR                              20. TOTAL MARYLAND TAX, LOCAL TAX                               s FORMS AND BROCHURES . .                    .   .   .17
    MARRIED PERSONS FILING                                    AND CONTRIBUTIONS . . . . . . . . . . . .10                 s TAX TABLE . . . . . . . . . . . . . .      .   .   .18
    SEPARATELY . . . . . . . . . . . . . . . . . . . .3   21. TAXES PAID AND CREDITS . . . . . . . .10                    s TAX COMPUTATION
19. PART-YEAR RESIDENTS/                                  22. OVERPAYMENT OR BALANCE DUE . .11                               WORKSHEETS . . . . . . . . . . .          . . .24
    MILITARY TAXPAYERS . . . . . . . . . . . . .3         23. SIGNATURE, TELEPHONE NUMBERS,                               s TAXPAYER RIGHTS . . . . . . . .            . . .26
10. EXEMPTIONS . . . . . . . . . . . . . . . . . . . .4       CODE NUMBER AND ATTACHMENTS . .11                           s SPECIAL CONTRIBUTION
11. INCOME AND ADJUSTMENTS . . . . . . .4                 24. MAILING INSTRUCTIONS                                           OPPORTUNITIES . . . . . . . . . .         . . .27
12. ADDITIONS TO INCOME . . . . . . . . . . . .4              AND DEADLINES . . . . . . . . . . . . . . . .11
13. SUBTRACTIONS FROM INCOME . . . . .5                   25. FISCAL YEAR . . . . . . . . . . . . . . . . . . .12
14. ITEMIZED DEDUCTIONS . . . . . . . . . . .8            26. SPECIAL INSTRUCTIONS FOR
15. FIGURE YOUR MARYLAND ADJUSTED                             PART-YEAR RESIDENTS . . . . . . . . . .12
    GROSS INCOME . . . . . . . . . . . . . . . . .8
                                            FORM


                                      123 MARYLAND SPECIAL 1997
                                          REFUND REQUEST
                                           RESIDENT
                                                            (FOR SINGLE AND DEPENDENT TAXPAYERS NOT
                                                                                                                                                                                                  DO NOT WRITE OR STAPLE IN ABOVE SPACE
                                                            OTHERWISE REQUIRED TO FILE A TAX RETURN)
                                                                                                                                                                                                YOUR SOCIAL SECURITY NUMBER
                                        Your first name                                                       Initial       Last name




                                        Present address (No. and street )                                                                 City or town                                                                          State   Zip code




                                        Name of county and incorporated city, town, or special taxing area in which you were a resident on the last day   Maryland county                               City, town or taxing area
                                        of the taxable period. (See Instruction 6)


                                      YOUR FILING STATUS –                                                                                                        1. COMPLETE CHECKLIST BELOW BEFORE
                                                                                                                                                                     FINISHING FORM
                                                          Single (If you can be claimed as a dependent on                                                         2. PLEASE PRINT YOUR NUMBERS LIKE THIS:
                                                          another person’s tax return) CHECK HERE



                                                                                                               WHO MAY USE THIS FORM?
STAPLE WAGE AND TAX STATEMENTS HERE




                                                                                You may use this form (Form 123) if you answer YES to all of these questions.
                                             YES       NO

                                      1.                        Are you single?
                                      2.                        Does your income consist solely of wages, tips, interest and/or dividends?
                                      3.                        Is your total income less than $6,800.00?
                                      4.                        Were you a resident of Maryland all year?
                                      5.                        Was Maryland tax withheld from your wages?
                                                If you answered NO to any of these questions you may not use this form. Go to Instruction 3 in the packet.
                                               REPORT                                  1A. Total wages, salaries & tips                                   $
                                             YOUR TOTAL
                                                                                       1B. Interest and dividend income   $
                                               GROSS
                                            INCOME HERE                                1C. Total gross income (add 1A & 1B)                                                              1C.                      ,                          .
                                             MINIMUM                                   2.       Subtract this amount from line 1C
                                              FILING                                                                                                                                     2.                       ,                          .
                                           REQUIREMENT
                                                                                       3.       If after subtracting line 2 from line 1C your answer
                                                                                                is less than 0, enter 0 and continue. If your answer                                     3.                       ,                          .
                                                                                                is more than 0 you cannot use this form.
                                        MARYLAND TAX                                   4.       Enter the amount of Maryland tax withheld from
                                          WITHHELD
                                      ATTACH W-2 FORMS
                                                                                                your wages.
                                                                                                                                                                                         4.                                                  .
                                                                                       5.       If you wish to donate part or all
                                                                                                of your refund enter amount:
                                        CONTRIBUTIONS
                                                                                                 A. Chesapeake Bay and
                                                                                                    Endangered Species Fund
                                                                                                                                                                                     .
                                                                                                 B. Fair Campaign Financing Fund                                                     .
                                                                                                 Add 5A and 5B. Enter amount                                                             5.                                                  .
                                                                                       6.       Subtract the amount on line 5, if any, from line 4.
                                                 REFUND                                                                                                       THIS IS YOUR                REFUND
                                      Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements and to the best of my knowledge and belief it is true, correct and complete.
                                                                                                                                                                                                                                             .
                                      If prepared by a person other than taxpayer, the declaration is based on all information of which the preparer has any knowledge.


                                      Your signature                                                                             Date                           Signature of preparer other than taxpayer                                Date

                                                                                                                                                                Address and telephone number of preparer
                                      Daytime telephone no.                                          Home telephone no.

                                                      -                     -                                           -                 -
     COT/RAD-057                                                                                                                                                                CODE NUMBER                 FOR OFFICE USE ONLY
INSTRUCTIONS
FOR
                                      SPECIAL
FORM 123                          REFUND REQUEST
1997                                        PAGE 2


USE THIS FORM IF:                                                              FIGURE YOUR REFUND

• Your    filing status is single (even if you can be claimed   Add up all the amounts of Maryland tax withheld using
    as a dependent on another person’s tax return).             the figures on your W-2 forms. Write the total on line 4
•   Your total income was less than $6,800.00.                  and attach the state copy of each W-2 to your form. Do
•   Your income consists of wages, tips, interest and/or        not include in this amount any tax paid to another state
    dividends.                                                  or to the federal government.
•   You are able to answer YES to all of the questions in       The total amount of Maryland tax withheld from your
    the checklist.                                              wages is your refund, unless you want all or part of it to
                                                                be donated to the Chesapeake Bay and Endangered
                 COMPLETING FORM 123                            Species Fund or the Fair Campaign Financing Fund.
                                                                Enter the amount you wish to donate on lines 5A and 5B
Please print your numbers inside the boxes using blue           and the total on line 5. Subtract line 5 from line 4 and
or black ink. Do not type your numbers or use red ink.          enter your refund on line 6.
Do not use dollar signs. You may round off cents to
whole dollars. To do so, drop amounts under 50 cents                                  SIGNATURE
and increase amounts that are 50 cents or more. For
example, $129.49 becomes $129 and $129.50 becomes               You must sign and date this form. If you pay someone to
$130. If you round off, do so for all amounts. But if you       prepare this form, that person must sign it also.
have to add two or more amounts to figure the amount to
enter on a line, include cents when adding and round off                       MAILING INSTRUCTIONS
only the total.
                                                                Mail Form 123 by April 15, 1998. Use the envelope that
                   NAME AND ADDRESS                             came with your packet. If you don’t have that envelope,
                                                                mail the form to:
Please use the mailing label we sent you. It can help
speed your refund. After you complete this form, put the               Comptroller of the Treasury
label in the name and address area. If you did not                     Revenue Administration Division
receive a label or the label contains any errors, print your           Annapolis, MD 21411-0001
name, address and social security number on your form.

                   COUNTY, CITY, TOWN

Follow Instruction 6 in the packet and enter your county,
city, town or taxing area.

                      FILING STATUS

You must be single to be able to use this form. If you can
be claimed as a dependent on another person’s tax
return, be sure to check the box in the filing status area.

                 REPORT YOUR INCOME

Add up the wages reported on all of your W-2 forms and
enter the total on line 1A.

Add up your interest and dividend income (if any) from the
1099 forms sent to you by your bank, credit union, broker,
etc. Enter the total on line 1B. You must report all your
interest even if you don’t get a Form 1099.

Enter the total of the amounts on lines 1A and 1B on line 1C.
This is your total gross income. If this amount is $6,800
or more, you cannot use this form. See Instruction 3 in the
packet to decide which Maryland return you should file.
                                       FORM


                           503 MARYLAND TAX RETURN 1997
                                      RESIDENT
                                                    (OR FISCAL YEAR BEGINNING                               1997, ENDING              1998)   $

                                          Your first name                                              Initial          Last name                                                            Social security number
                                                                                                                                                                                                                                                                 Check here if
                                                                                                                                                                                                                                                       you use a paid preparer
                                                                                                                                                                                                                                                       and do not want Mary-


                                                                                        ATTACH LABEL
                                          Spouse’s first name                                          Initial          Last name                                                            Social security number                                    land forms mailed to you
                                                                                                                                                                                                                                                       next year.

                                          Present address (No. and street)                                                                        City or town                                                                                 State          Zip code



                                                                                                                                                                      Maryland county                                                    City, town or taxing area
                                          Name of county and incorporated city, town, or special taxing area in which you were a
                                          resident on the last day of the taxable period. (See Instruction 6)

                                            YOUR FILING STATUS — See Instruction 1 to determine if you are required to file.                        EXEMPTIONS — See Instruction 10                                                                              Exemption Amount

                                                                                                                                                                                                                     Enter No.
                                                                                                                                                    (A) Yourself                     Spouse                          Checked       (A)            $1,200 $ ____________
                                            1.         Single (If you can be claimed on another person’s tax return, use Filing Status 7)
                                                                                                                                                          Check here if you are:       Spouse is:
                                                                                                                                                                                                                  Enter No.
                                            2.         Married filing joint return or spouse had no income                                          (B)                                                           Checked          (B)            $1,000 $ ____________
                                                                                                                                                            65 or over      Blind       65 or over      Blind


                                            4.         Married filing separately                                                                    (C) Dependent Children______________ Enter No. (C)                                            $1,200 $ ____________
                                                                                                   SPOUSE’S SOCIAL SECURITY NUMBER
                                                                                                                                                          _____________________________________
                                            5.         Head of household
                                                                                                                                                    (D) Other Dependents                                             Enter No.     (D)            $1,200 $ ____________
                                                                                                                                                                                        Regular      65 or over
                                                                                                                                                          _____________________________________
                                                                                                                                                          Name(s)
                                            6.         Qualifying widow(er) with dependent child
                                                                                                                                                          _____________________________________
                                                                                                                                                          Relationship(s)                                                                        Total
                                                                                                                                                                                                                                               Exemption
                                            7.         Dependent taxpayer (Enter 0 in Exemption Box (A)—See Instruction 7)                          (E) Total Exemptions (Add A, B, C and D)                                       (E)
                                                                                                                                                                                                                                                Amount
                                                                                                                                                                                                                                                         $ ____________

                                        Carefully enter all amounts in the appropriate boxes. Use the tick marks as a guide in separating the digits of your numbers.                                                                            Dollars                    Cents
                                        55. Total income from federal return (Copy the amount from line 22 if you use Form 1040. Copy the amount from
                                             line 14 if you use Form 1040A. Copy the amount from line 4 if you use Form 1040EZ.) . . . . . . . . . . . . . . . . . . . . . . . 55
                                        56. Standard deduction (See Instruction 16) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
                                        57. Net income (Subtract line 56 from line 55) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57
                                        58. Exemption amount as computed above . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58
                                        59. Taxable net income (Subtract line 58 from line 57. GO TO TAX TABLE, page 18.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
                                        60. Maryland tax (from Tax Table or Computation Worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
top of your wage and tax statements
Place your check or money order on

and fasten here with one staple.




                                        61. Earned income credit (1/2 of the federal earned income credit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
                                        62a. Adjusted Maryland tax (Subtract line 61 from line 60) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62a
                                        62b. Local income tax (See Instruction 19) Enter _____% of line 62a. State will remit local tax to your county of residence. . . . . . 62b
                                                                                                                                                                                               62c
                                        62c. Total Maryland and local income tax (Add lines 62a and 62b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                        63. Contribution to: Chesapeake Bay & Endangered Species Fund                           Fair Campaign Financing Fund
                                                                                                                                                             Enter total contributions                                        63
                                                             63a.                                                               63b.
                                        64. Total Maryland income tax, local income tax and contributions (Add lines 62c and 63) . . . . . . . . . . . . . . . . . . . . . . . 64
                                        65. Total Maryland tax withheld (Enter total from your W-2 and 1099 forms if MD tax is withheld) . . . . . . . . . . . . . . . . . . . . 65
                                        66. 1997 estimated tax payments, amount applied from 1996 return and payment made with an extension request, Form 502E . . . . . 66
                                        69. Total payments (Add lines 65 and 66) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
                                        70. Balance due (If line 64 is more than line 69, subtract line 69 from line 64) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
                                        71. Overpayment (If line 64 is less than line 69, subtract line 64 from line 69) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
                                        72. Amount of line 71 TO BE APPLIED TO 1998 ESTIMATED TAX . . . . . . . . . . . . . 72. . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                                                                            .
                                        73. Amount of line 71 TO BE REFUNDED TO YOU (Subtract line 72 from line 71) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
                                                                                                                                                              REFUND

                                        74. Interest charges from Form 502UP (for persons who paid too little estimated tax) or for late filing . . . . . . . . . . . . . . . . . 74
                                        75. TOTAL AMOUNT DUE (Add lines 70 and 74) . . . . . . . . . . . . . .IF $1 OR MORE, PAY IN FULL WITH THIS RETURN                                                                     75
                                        Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and                                      Make checks payable to: COMPTROLLER OF THE TREASURY.
                                        statements and to the best of my knowledge and belief it is true, correct and complete. If prepared by a person                                   Write social security no. on check using blue or black ink.
                                        other than taxpayer, the declaration is based on all information of which the preparer has any knowledge.                                   Mail to: Comptroller of the Treasury, Revenue Administration Division,
                                                                                                                                                                                                       Annapolis, Maryland 21411-0001


                                           Your signature                                                                   Date                                 Signature of preparer other than taxpayer                                                           Date

                                           Spouse’s signature                                                               Date                                 Address and telephone number of preparer
                                           Daytime telephone no.                                     Home telephone no.

                                                            -                -                                      -                 -
                  COT/RAD-020                                                                                                                                                          CODE NUMBER                            FOR OFFICE USE ONLY
                            WHO MAY USE
                             THIS FORM?
You may use this short form (Form 503) if you answer “No” to ALL of these questions:
     YES NO                                                       YES NO
1.            Did you have any business income (that is,       16.            Are you claiming a tax credit on Maryland
              did you file Form 1040, Schedule C)?                            Form 500CR or 502CR?
2.            Did your income include any losses?
                                                               17.            Were you a nonresident of Maryland?
3.            Did you have any adjustments to income on
              federal Form 1040 or 1040A?
                                                               18.            Were you a part-year resident of Maryland?
4.            Will you have any Additions to Income or
              Subtractions from Income on your Maryland
              return? If you are eligible for a subtraction,   19.            Does your return cover less than a 12 month
              such as the pension exclusion, it will be to                    period?
              your benefit to use Form 502.
5.            Do you want to itemize your deductions?          10.            Were you a fiscal year taxpayer?
If you answered “YES” to any of these questions you may not use this form. Go to Instruction 3 in the instruction booklet.


                                         INSTRUCTIONS FOR FORM 503
A. Be sure that you are required to file a Maryland tax return. See Instruction 1 in the instruction booklet.
B. Be sure that you can use this form. Use the checklist at the top of this page.
C. Complete your federal tax return first. You cannot fill out this form until you have the numbers from
   your federal return.
D. Attach the mailing label contained in your tax booklet.
         DO NOT USE THE LABEL IF:
         Your name, address, or social security number is wrong, OR
         You and your spouse are filing separate returns and both names are on the label, OR
         You and your spouse are filing a joint return and only one name is on the label.
E. Fill in the blanks for MARYLAND COUNTY and CITY, TOWN OR TAXING AREA, based on your
   residence on December 31, 1997.
         BALTIMORE CITY RESIDENTS:
            Leave the MARYLAND COUNTY box blank.
            Write “Baltimore” in the CITY, TOWN OR TAXING AREA box.
         ALL OTHERS:
            Write the name of your county in the MARYLAND COUNTY box.
            If you lived in one of the CITY, TOWN OR SPECIAL TAXING AREAS listed on Page 2,
               write its name in the CITY, TOWN OR TAXING AREA box.
            If you did not live in one of the areas listed, leave the CITY, TOWN OR TAXING AREA
               box blank.
F. If you use a paid preparer and do not want Maryland forms mailed to you next year, check the
   appropriate box.
G. Check the correct filing status. See Instruction 7 in the instruction booklet.
H. Check the exemptions you qualify for. See Instruction 10 in the instruction booklet.
I. Complete lines 55-75 following the directions on the form. You may round all numbers to the nearest
   dollar.
J. Sign and date your return. Both husband and wife must sign a joint return. Your signature(s) signify
   that your return, including all attachments, is, to the best of your knowledge and belief, true, correct
   and complete, under the penalties of perjury. If someone else prepared your return, the preparer
   must also sign. Complete the telephone number boxes at the bottom of the form.
K. Be sure to attach wage and tax statements (W-2 and 1099 forms) if Maryland tax is withheld and
   enclose your check or money order, if required.
L. Mail Form 503 by April 15, 1998. Use the envelope that came with your packet. If you don’t have that
   envelope, mail the form to:
         Comptroller of the Treasury
         Revenue Administration Division
         Annapolis, MD 21411-0001
                                       FORM


                           502 MARYLAND TAX RETURN 1997
                                      RESIDENT
                                                    (OR FISCAL YEAR BEGINNING                              1997, ENDING             1998)   $

                                          Your first name                                             Initial          Last name                                                           Social security number
                                                                                                                                                                                                                                                             Check here if
                                                                                                                                                                                                                                                   you use a paid preparer



                                                                                       ATTACH LABEL
                                                                                                                                                                                                                                                   and do not want Mary-
                                          Spouse’s first name                                         Initial          Last name                                                           Social security number                                  land forms mailed to you
                                                                                                                                                                                                                                                   next year.

                                          Present address (No. and street)                                                                      City or town                                                                               State          Zip code



                                                                                                                                                                    Maryland county                                                  City, town or taxing area
                                          Name of county and incorporated city, town, or special taxing area in which you were a
                                          resident on the last day of the taxable period. (See Instruction 6)

                                            YOUR FILING STATUS — See Instruction 1 to determine if you are required to file.                      EXEMPTIONS — See Instruction 10                                                                            Exemption Amount

                                            1.        Single (If you can be claimed on another person’s tax return, use Filing Status 7)          (A) Yourself                    Spouse
                                                                                                                                                                                                                   Enter No.
                                                                                                                                                                                                                   Checked     (A)            $1,200 $ ____________
                                            2.        Married filing joint return or spouse had no income                                               Check here if you are:     Spouse is:

                                            4.        Married filing separately                                                                   (B)
                                                                                                                                                                                                                Enter No.
                                                                                                                                                                                                                Checked        (B)            $1,000 $ ____________
                                                                                                SPOUSE’S SOCIAL SECURITY NUMBER
                                            5.        Head of household                                                                                   65 or over      Blind       65 or over      Blind


                                            6.        Qualifying widow(er) with dependent child                                                   (C) Dependent Children                                           Enter No.   (C)            $1,200 $ ____________
                                            7.        Dependent taxpayer (Enter 0 in Exemption Box (A)—See Instruction 7)                               _____________________________________
                                            PART-YEAR RESIDENTS AND MILITARY: Check here if you began                                                   _____________________________________
                                            or ended legal residence in Maryland in 1997 (See Instruction 26) or if
                                                                                                                                                        _____________________________________
                                            you have non-Maryland military income (See Instruction 27).
                                                                    Give dates of Maryland Residence                                              (D) Other Dependents                                             Enter No.   (D)            $1,200 $ ____________
                                                                                                                                                                                      Regular      65 or over
                                                            MO       DAY     YR                MO         DAY     YR
                                                                                                                                                        _____________________________________
                                                                                                                                                        Name(s)

                                            FROM _________________ TO _________________                                                                 _____________________________________
                                                                                                                                                        Relationship(s)                                                                     Total
                                                                                                                                                                                                                                          Exemption
                                                                                                                                                  (E) Total Exemptions (Add A, B, C and D)                                     (E)                  $ ____________
                                            Other state of residence __________________________________                                                                                                                                    Amount

                                        INCOME AND ADJUSTMENTS FROM FEDERAL RETURN                                                                                                                                                          Dollars                   Cents
                                         1. Wages, salaries, tips, etc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                1
                                         2a. Taxable interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 2a
                                         2b. Tax-exempt interest income 2b                                         (You may have to include this on line 18. See Instruction 12) . . . .
                                         3. Dividend income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              3
                                         4. Taxable refunds, credits, or offsets of state and local income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                 4
                                         5. Alimony received . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             5
                                         6. Business income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  6
                                         7. Capital gain or (loss) (including capital gain distributions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            7
                                         8. Other gains or (losses) (from federal Form 4797) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                           8
top of your wage and tax statements
Place your check or money order on




                                         9a. Total IRA distributions 9a                                    . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9b. Taxable amount                                       9b
and fasten here with one staple.




                                         9c. Total pensions and annuities 9c                                         . . . . . . . . . . . . . . . . . . . . . . . .9d. Taxable amount                                       9d
                                        10. Rents, royalties, partnerships, S corporations, estates, trusts, etc. (Circle appropriate item) . . . . . . . . . . . .                                                         10
                                        11. Farm income or (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               11
                                        12. Unemployment compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     12
                                        13a. Social security and Tier I RR benefits 13a                                          . . . . . . . . . . . . . . . . .13b. Taxable amount                                       13b
                                        14. Other income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                            14
                                        15. Total income (Add lines 1 through 14) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     15
                                        16. Total adjustments to income from federal return (IRA, alimony, etc.) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                  16
                                        17. Federal adjusted gross income (Subtract line 16 from 15) . . . . . . . . . . . . . . . . . . . . . . . . .Enter on line 51                                                      17
                                        ADDITIONS TO INCOME (See Instruction 12)
                                        18. Tax-exempt interest on state and local obligations (bonds) other than Maryland from line 2b . . . . . . . . . . .                                                               18
                                        19. Taxable tax preference items (Attach Form 502TP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                            19
                                        20. Lump sum distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                20
                                        21. Other (Enter code letter(s) from Instruction 12) . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                            21
                                        22. Total (Add lines 18 through 21) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enter on line 52                                           22
                                        SUBTRACTIONS FROM INCOME (See Instruction 13)
                                        23. Taxable refunds, credits, or offsets of state and local income taxes from line 4 above . . . . . . . . . . . . . . . . .                                                        23
                                        24. Child and dependent care expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     24
                                        25. Income from U.S. obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                  25
                                        26. Pension exclusion from worksheet, page 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          26
                                        27. Taxable social security or RR benefits (Tier I, II and supplemental) included in line 9d or 13b above . . . . . .                                                               27
                                        28. Poverty level income from worksheet, page 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                           28
                                        29. Income received during period of nonresidence (See Instructions 26 and 27) . . . . . . . . . . . . . . . . . . . . . . .                                                        29
                                        30. Other (Enter code letter(s) from Instruction 13) . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                            30
                                        31. Subtotal (Add lines 23 through 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                    31
                                        32. Two-income subtraction from worksheet, page 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                             32
                                        33. Total (Add lines 31 and 32) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Enter on line 54                                         33
                                       1997 MARYLAND FORM 502
                                                              PAGE 2

  ITEMIZED DEDUCTIONS AND MARYLAND ADJUSTMENTS (See Instruction 14)                                                                                                                      Dollars            Cents

  34. Total federal itemized deductions (from line 28, federal Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

  35. State and local income taxes included in federal Schedule A, line 5 (or from worksheet in Instruction 14) . . . . . . . . . . . . . 35

  36. Net itemized deductions (Subtract line 35 from line 34) (Part-year residents see Instruction 26(m)) . . . .Enter on line 56                                          36
  (Lines 37-50 are reserved for future use. Continue on line 51) Carefully enter all amounts in the appropriate boxes.

  51. Federal adjusted gross income (from line 17 on the front of this form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

  52. Additions to income (from line 22 on the front of this form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

  53. Total (Add lines 51 and 52) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

  54. Subtractions from income (from line 33 on the front of this form) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

  55. Total Maryland adjusted gross income (Subtract line 54 from line 53) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

  56. All taxpayers must complete this line—CHECK ONLY ONE METHOD

         STANDARD DEDUCTION METHOD                               See Instruction 16 and worksheet (Part-year residents also see Instruction 26)
         ITEMIZED DEDUCTION METHOD                               Enter total deductions from line 36 (Part-year residents see Instruction 26 (m))                          56

  57. Net income (Subtract line 56 from line 55) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

  58. Exemption amount (from Exemptions area on the front of this form. See Instruction 10) . . . . . . . . . . . . . . . . . . . . . . . . . 58

  59. Taxable net income (Subtract line 58 from line 57) GO TO TAX TABLE, page 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

  60. Maryland tax (from Tax Table or Computation Worksheet) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60

  61. Earned income credit (1⁄2 of federal earned income credit) Prorate according to number of months covered by this return . . . . . 61

  62a. Adjusted Maryland tax (Subtract line 61 from line 60) If less than 0, enter 0. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62a

  62b. Local income tax (See Instruction 19) Enter _____% of line 62a. State will remit local tax to your county of residence. . . . . 62b

  62c. Total Maryland and local income tax (Add lines 62a and 62b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62c

  63. Contribution to: Chesapeake Bay & Endangered Species Fund                              Fair Campaign Financing Fund
                                                                                                                                     Enter total contributions             63
                              63a.                                                          63b.
  64. Total Maryland income tax, local income tax and contributions (Add lines 62c and 63) . . . . . . . . . . . . . . . . . . . . . . . . 64

  65. Total Maryland tax withheld (Enter total from and attach your W-2 and 1099 forms if MD tax is withheld) . . . . . . . . . . . . . 65

  66. 1997 estimated tax payments, amount applied from 1996 return and payment made with an extension request Form 502E . . . . . . 66

  67. Credit for income tax paid another state (Attach Form 502CR) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
  68. Business and rehabilitation tax credits      (Attach Form 500CR and/or Form 502H) and                                                                    68
      neighborhood preservation credit        (Attach certification). Check the appropriate box(es). . . . . . . . . . . . . . . . . . . . . .
  69. Total payments and credits (Add lines 65 through 68) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

  70. Balance due (If line 64 is more than line 69, subtract line 69 from line 64) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

  71. Overpayment (If line 64 is less than line 69, subtract line 64 from line 69) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71

  72. Amount of overpayment on line 71 TO BE APPLIED TO 1998 ESTIMATED TAX . . 72. . . . . . . . . . . . . . . . . . . . . . . . . . . .
                                                                               .

  73. Amount of overpayment on line 71 TO BE REFUNDED TO YOU (Subtract line 72 from line 71) . . . . . . . . . . . . . . . . . . . . 73
                                                                                                                 REFUND

  74. Interest charges from Form 502UP (for persons who paid too little estimated tax) or for late filing . . . . . . . . . . . . . . . . . . 74

  75. TOTAL AMOUNT DUE (Add line 70 and line 74) . . . . . . . . . . . . . .IF $1 OR MORE, PAY IN FULL WITH THIS RETURN                                                    75

       Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and                                Make checks payable to: COMPTROLLER OF THE TREASURY.
       statements and to the best of my knowledge and belief it is true, correct and complete. If prepared by a person                             Write social security no. on check using blue or black ink.
       other than taxpayer, the declaration is based on all information of which the preparer has any knowledge.                             Mail to: Comptroller of the Treasury, Revenue Administration Division,
                                                                                                                                                                Annapolis, Maryland 21411-0001


           Your signature                                                                  Date                              Signature of preparer other than taxpayer                              Date

           Spouse’s signature                                                              Date                              Address and telephone number of preparer
           Daytime telephone no.                                    Home telephone no.

                          -                 -                                      -                 -
                                                                                                                                                CODE NUMBER                 FOR OFFICE USE ONLY

COT/RAD-009
                                                                                                                                         Recycled Paper
      MARYLAND RESIDENT
     INCOME TAX RETURNS                                                                             INSTRUCTIONS
    FORMS 502, 503 AND 123                                                                              19 9 7
                                                                           PENALTIES                           computer-generated substitute form pro-
  IMPORTANT NOTES                                              There are severe penalties for failing to       vided that it is approved in advance by the
                                                         file a tax return, failing to pay any tax when        Revenue Administration Division. The fact
                DUE DATE                                 due, filing a false or fraudulent return, or          that a software package is available for
                                                         making a false certification. The penalties           retail purchase does not guarantee that it
     Your return is due by April 15, 1998.                                                                     has been approved for use.
If you are a fiscal year taxpayer, see                   include criminal fines, imprisonment, and a
                                                         penalty on your taxes. In addition, interest is            For additional information, see Admin-
Instruction 25.
                                                         charged on amounts not paid.                          istrative Release No. 26, Procedures for
       COMPLETING THE RETURN                                   To collect unpaid taxes, the Comp-              Computer-Printed Substitute Forms, which
     You must use blue or black ink when                 troller is directed to enter liens against the        can be obtained from any office of the
completing your return. DO NOT use pencil                salary, wages or property of delinquent               Maryland Revenue Administration Division.
or red ink. Submit the original return, not a            taxpayers.                                                 You may also call the tax information
photocopy.                                                                                                     number listed on the back cover to find out
     You may round off all cents to the                               SUBSTITUTE FORMS                         which computer-generated forms have been
nearest whole dollar. Fifty cents and above                  You may file your Maryland income                 approved for use.
should be rounded to the next higher dollar.             tax return on a computer-prepared or


     Do I have to file? This booklet and forms are for residents of Maryland. In general, you must file a Maryland return if you
1    are or were a resident of Maryland AND you are required to file a federal return. Information in this section will allow you to
     determine if you must file a return and pay taxes as a resident of Maryland. If you are not a resident but had Maryland tax
     withheld or had income from sources in Maryland, you must use Form 505 or 515, Nonresident Tax Return.
           WHO IS A RESIDENT?                            TO DETERMINE IF YOU ARE REQUIRED                      f. If you or your spouse is 65 or over, use
     You are a resident of Maryland if:                       TO FILE A MARYLAND RETURN                           Table 2, “Minimum Filing Levels for Per-
a. Your permanent home is or was in                      a. Add up all of your federal gross income               sons Age 65 or over” on this page.
   Maryland (the law refers to this as your                 to determine your total federal income.              IF YOU ARE NOT REQUIRED TO FILE
   domicile).                                               Gross income is defined in the Internal                A MARYLAND RETURN BUT HAD
   OR                                                       Revenue Code and, in general, consists                  MARYLAND TAXES WITHHELD:
b. Your permanent home is outside of                        of all income regardless of source. It                  To get a refund of Maryland income
   Maryland, but you maintained a place of                  includes wages and other compensation              taxes withheld, you must file a Maryland
   abode (that is, a place to live) in Mary-                for services, gross income derived from            form.
   land for more than six months of the tax                 business, gains (not losses) derived                    If you are single or a dependent tax-
   year. If this applies to you, you must file              from dealings in property, interest, rents,        payer and your gross income is less than
   a full-year resident return.                             royalties, dividends, alimony, annuities,          $6,800, you may be able to use Form 123 to
         PART-YEAR RESIDENTS                                pensions, income from partnerships or              get your refund. Form 123 is included in this
                                                            fiduciaries, etc. IRS Publication 525 pro-         packet and contains instructions for its use.
     If you began or ended residence in                     vides additional information on taxable
Maryland during the tax year you must file                                                                          Other taxpayers who are filing for
                                                            and nontaxable income.                             refund only should complete all of the infor-
a Maryland resident income tax return. See               b. Do not include social security or railroad
Instruction 26.                                                                                                mation at the top of Form 502 or Form 503
                                                            retirement benefits in your total federal          and complete the following lines:
   MILITARY AND OTHERS WORKING                              income.
                                                         c. Add to your total federal income any                     Form 502              Form 503
         OUTSIDE OF MARYLAND
                                                            Maryland additions to income. See                           51–55                  55
     Military and other individuals whose                                                                               65–69                65–69
domicile is in Maryland, but who are                        Instruction 12. This is your Maryland
                                                            gross income.                                               71, 73               71, 73
stationed or work outside of Maryland,                                                                              Sign the form and attach withholding
including overseas, retain their Maryland                d. If you are a dependent taxpayer, add to
                                                            your total federal income any Maryland             statements (all W-2 and 1099 forms) show-
legal residence. Such persons do not lose                                                                      ing Maryland tax withheld equal to the
Maryland residence just because of duty                     additions and subtract any Maryland
                                                            subtractions. See Instructions 12 and 13.          refund you are claiming.
assignments outside of the State. Military                                                                          Your form is then complete. Mail it in
personnel and their spouses should see                      This is your Maryland gross income.
                                                         e. You must file a Maryland return if your            the gold envelope from the tax packet. You
Instruction 27.                                                                                                must file within three years of the original
                                                            Maryland gross income equals or
                                                            exceeds the income levels in Table 1.              due date to receive any refund.

                                                            Minimum Filing Level Tables
                                  Table 1                                                                         Table 2
                          For taxpayers under 65                                                          For taxpayers 65 or over
  Single persons (including dependent taxpayers) . . .$ 6,800                       Single, age 65 or over . . . . . . . . . . . . . . . . . . .   . . .$ 7,800
  Joint return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,200   Joint return, one spouse age 65 or over . . . . . .            . . . 13,000
  Married persons filing separately . . . . . . . . . . . . . . 2,650               Joint return, both spouses age 65 or over . . . . .            . . . 13,800
  Head of household . . . . . . . . . . . . . . . . . . . . . . . . 8,700           Married persons filing separately, age 65 or over                . . 2,650
  Qualifying widow(er) . . . . . . . . . . . . . . . . . . . . . . . 9,550          Head of household, age 65 or over . . . . . . . . .            . . . 9,700
                                                                                    Qualifying widow(er), age 65 or over . . . . . . . .           . . . 10,350

                                                                                                                                                                  1
     Use of federal return. First complete your 1997 federal income tax return.
2
    You will need the information from your               this point. Maryland law requires that your       all items reported on your Maryland return
federal return in order to complete your                  income and deductions be entered on your          are subject to verification, audit, and revi-
Maryland return. Therefore, complete your                 Maryland return exactly as they were              sion by the Maryland State Comptroller’s
federal return before you continue beyond                 reported on your federal return. However,         Office.

     Form 502 or 503? Decide whether you will use Form 502 (long form) or Form 503 (short form).
3
                 FORM 502                                 use this form if you have moved into or out       Form 503. Check the instructions on the
     All taxpayers may use Form 502. You                  of Maryland during the taxable year.              back of Form 503 to see if you qualify to
must use this form if you itemize deduc-                                                                    use it. NOTE: If you are eligible for the pen-
tions, if your income includes business                                    FORM 503                         sion exclusion, you must use Form 502.
income, losses, or any adjustments to fed-                     If your income consists of only wages,             If you qualify to use Form 503, turn to
eral income, or if you have any Maryland                  interest, dividends, pensions or unemploy-        it now. Most of the instructions which you
additions or subtractions. You must also                  ment compensation, you may use the short          will need are on the back of the form.

     Mailing label. Remove the label located under the flap inside the front cover of your tax packet and place it over the name
4    and address blanks of your tax return. Using the label speeds up the processing of your return, including getting your
     refund to you sooner. It also reduces the possibility of error which could delay your refund.

     DO NOT USE YOUR LABEL IF:                               names, initials or social security num-               IF YOUR RETURN IS BEING
a. Your name, address or social security                     bers are on the label, OR                         COMPLETED BY SOMEONE ELSE:
   number is wrong, OR                                    c. You are going to file a joint return, and           Take your packet to your tax preparer
b. You and your spouse are going to file                     only one name or social security num-          so that the preparer can attach the label to
   separate returns and both of your                         ber is on the label.                           your return.

     Paid preparer. If you use a paid preparer and do not want Maryland forms mailed to you next year, check the
5    appropriate box.


     County, city, town information. Fill in the boxes for MARYLAND COUNTY and CITY, TOWN OR TAXING AREA based on
6    your residence on the last day of the taxable period:

    BALTIMORE CITY RESIDENTS:                             RESIDENTS OF MARYLAND COUNTIES                         3. If you lived in one of the areas listed
                                                                (NOT BALTIMORE CITY):                       under your county, write its name in the
    Leave the MARYLAND COUNTY box                                                                           CITY, TOWN OR TAXING AREA box.
blank.                                                       1. Write the name of your county in the             4. If you did not live in one of the areas
    Write “Baltimore City” in the CITY,                   MARYLAND COUNTY box.                              listed for your county, leave the CITY,
TOWN OR TAXING AREA box.                                     2. Find your county in the list below.         TOWN OR TAXING AREA box blank.

                                      LIST OF INCORPORATED CITIES, TOWNS AND TAXING AREAS IN MARYLAND
     ALLEGANY COUNTY                  CARROLL COUNTY                 GARRETT COUNTY             PRINCE GEORGE’S COUNTY         TALBOT COUNTY
       BARTON                           HAMPSTEAD                      ACCIDENT                     BERWYN HEIGHTS                EASTON
       BELAIR                           MANCHESTER                     DEER PARK                    BLADENSBURG                   OXFORD
       BOWLING GREEN-ROBERT’S PLACE     MT. AIRY                       FRIENDSVILLE                 BOWIE                         QUEEN ANNE
       CRESAPTOWN                       NEW WINDSOR                    GRANTSVILLE                  BRENTWOOD                     ST. MICHAELS
       CUMBERLAND                       SYKESVILLE                     KITZMILLERSVILLE             CAPITOL HEIGHTS               TRAPPE
       ELLERSLIE                        TANEYTOWN                      LOCH LYNN HEIGHTS            CHEVERLY
       FROSTBURG                        UNION BRIDGE                   MOUNTAIN LAKE PARK           COLLEGE PARK               WASHINGTON COUNTY
       LAVALE                           WESTMINSTER                    OAKLAND                      COLMAR MANOR                  BOONSBORO
       LONACONING                                                                                   COTTAGE CITY                  CLEARSPRING
       LUKE                           CECIL COUNTY                   HARFORD COUNTY                 DISTRICT HEIGHTS              FUNKSTOWN
       McCOOLE                          CECILTON                       ABERDEEN                     EAGLE HARBOR                  HAGERSTOWN
       MIDLAND                          CHARLESTOWN                    BEL AIR                      EDMONSTON                     HANCOCK
       MT. SAVAGE                       CHESAPEAKE CITY                HAVRE DE GRACE               FAIRMOUNT HEIGHTS             KEEDYSVILLE
       POTOMAC PARK ADDITION            ELKTON                                                      FOREST HEIGHTS                SHARPSBURG
       WESTERNPORT                      NORTH EAST                   HOWARD COUNTY                  GLENARDEN                     SMITHSBURG
                                        PERRYVILLE                     NO INCORPORATED              GREENBELT                     WILLIAMSPORT
     ANNE ARUNDEL COUNTY                PORT DEPOSIT                   CITIES OR TOWNS              HYATTSVILLE
       ANNAPOLIS                        RISING SUN                                                  LANDOVER HILLS             WICOMICO COUNTY
       HIGHLAND BEACH                                                                               LAUREL
                                                                     KENT COUNTY                    MORNINGSIDE
                                                                                                                                  DELMAR
                                      CHARLES COUNTY                   BETTERTON                                                  FRUITLAND
     BALTIMORE COUNTY                   INDIAN HEAD                                                 MT. RAINIER                   HEBRON
                                                                       CHESTERTOWN
       NO INCORPORATED                  LA PLATA                                                    NEW CARROLLTON                MARDELA SPRINGS
                                                                       GALENA
       CITIES OR TOWNS                  PORT TOBACCO                                                NORTH BRENTWOOD               PITTSVILLE
                                                                       MILLINGTON                   RIVERDALE                     SALISBURY
                                                                       ROCK HALL                    SEAT PLEASANT
     BALTIMORE CITY                   DORCHESTER COUNTY                                             TAKOMA PARK
                                                                                                                                  SHARPTOWN
                                        BROOKVIEW                    MONTGOMERY COUNTY            *                               WILLARDS
                                                                                                    UNIVERSITY PARK
     CALVERT COUNTY                     CAMBRIDGE                       BARNESVILLE                 UPPER MARLBORO
       CHESAPEAKE BEACH                 CHURCH CREEK                    BROOKEVILLE                                            WORCESTER COUNTY
       NORTH BEACH                      EAST NEW MARKET                 CHEVY CHASE SEC. 3                                        BERLIN
                                        ELDORADO                        TOWN OF CHEVY CHASE
                                                                                                QUEEN ANNE’S COUNTY               OCEAN CITY
                                        GALESTOWN                                                  BARCLAY                        POCOMOKE CITY
     CAROLINE COUNTY                                                    (FORMERLY SEC. 4)          CENTREVILLE
       DENTON                           HURLOCK                         CHEVY CHASE SEC. 5                                        SNOW HILL
                                        SECRETARY                                                  CHURCH HILL
       FEDERALSBURG                                                     CHEVY CHASE VIEW
                                        VIENNA                                                     MILLINGTON
       GOLDSBORO                                                        CHEVY CHASE VILLAGE        QUEEN ANNE
       GREENSBORO                                                       DRUMMOND                   QUEENSTOWN
       HENDERSON                      FREDERICK COUNTY                  FRIENDSHIP HEIGHTS         SUDLERSVILLE
       HILLSBORO                        BRUNSWICK
                                        BURKITTSVILLE
                                                                        GAITHERSBURG
                                                                        GARRETT PARK
                                                                                                   TEMPLEVILLE                 * If at the end of 1997 you lived in
       MARYDEL                                                                                                                  the part of Takoma Park that was
       PRESTON                          EMMITSBURG                      GLEN ECHO                                               formerly part of Prince George’s
       RIDGELY                          FREDERICK                       KENSINGTON              ST. MARY’S COUNTY
                                        MIDDLETOWN                      LAYTONSVILLE               LEONARDTOWN                  County, write “PG/MONT.” in the
       TEMPLEVILLE
                                        MT. AIRY                        MARTIN’S ADDITION                                       county box and Takoma Park in
                                        MYERSVILLE                      NORTH CHEVY CHASE       SOMERSET COUNTY                 the city, town or taxing area box.
                                        NEW MARKET                      OAKMONT                    CRISFIELD
                                        ROSEMONT                        POOLESVILLE                PRINCESS ANNE
                                        THURMONT                        ROCKVILLE
                                        WALKERSVILLE                    SOMERSET
                                        WOODSBORO                      *TAKOMA PARK
                                                                        WASHINGTON GROVE



2
                              Filing status. Use the following chart to determine your filing status and check the correct FILING STATUS box on the return.
7                             (IMPORTANT: Also see additional information in the chart.)

                                                                 If you are:                       Check the box for:                  Additional Information

                                               Any person who can be claimed as a                    Dependent
                                                                                                                       ¬    Single Dependent taxpayers, regardless of
  (Single on the last day of the tax year.)


                                               dependent on his or her parent’s (or any other        taxpayer               whether income is earned or unearned, are
                                               person’s) federal return                              Filing Status 7        not required to file a Maryland income tax
                                                                                                                            return unless the gross income including
                                               Any person who filed as a head of household           Head of                Maryland additions and subtractions is
           SINGLE PERSON




                                               on his or her federal return                          household              $6,800 or more. See Instruction 1 if you are
                                                                                                     Filing Status 5        due a refund.
                                                                                                                            You do not get an exemption for yourself. Put
                                               A qualifying widow(er) with dependent child who       Qualifying             a zero in Exemption Box A.
                                               filed a federal return with this status               widow(er) with
                                                                                                     dependent child
                                                                                                     Filing Status 6

                                               All other single persons                              Single                 If your spouse died during the year AND you
                                                                                                     Filing Status 1        filed a joint federal return with your deceased
                                                                                                                            spouse, you may file your Maryland return as
                                                                                                                            a married person.

                                               Any person who can be claimed as a                    Dependent              You do not get an exemption for yourself. Put
                                               dependent on his or her parent’s (or any other        taxpayer               a zero in Exemption Box A. You and your
                                               person’s) federal return                              Filing Status 7        spouse must file separate returns.

                                               Any person who filed as a head of household           Head of
                                               on his or her federal return                          household
                                                                                                     Filing Status 5
  (Married on the last day of the tax year.)




                                               Married couples who filed separate federal            Married filing         Each taxpayer must show his or her spouse’s
                                               returns                                               separately             social security number in the blank next to
          MARRIED PERSONS




                                                                                                     Filing Status 4        the filing status box.

                                               Married couples who filed joint federal returns       Joint return           If you are not certain which filing status to
                                               but had different taxable periods                     Filing Status 2        use, figure your tax both ways to determine
                                                                                                            or              which status is best for you. See Instructions
                                                                                                     Married filing         8 and 26(g) through (q).
                                                                                                     separately
                                                                                                     Filing Status 4

                                               Married couples who filed joint federal returns       Joint return           If you are filing separately, see Instruction 8.
                                               but were domiciled in different states, counties,     Filing Status 2        If you are filing a joint return see SPECIAL
                                               cities, towns or taxing areas on the last day of             or              NOTE in Instruction 19.
                                               the year                                              Married filing
                                                                                                     separately
                                                                                                     Filing Status 4

                                               All other married couples who filed joint federal     Joint return
                                               returns                                               Filing Status 2



                              Special instructions for married persons filing separately. If you and your spouse file a joint federal return but are
8                             filing separate Maryland returns according to Instruction 7, you will need to follow the instructions below.

      If you and your spouse file a joint fed-                                       itemize on their separate Maryland returns,     of exemptions claimed on each separate
eral return but are filing separate Maryland                                         then each spouse must determine which           return may not exceed the total number of
returns according to Instruction 7, you                                              deductions pertain to him or her. The total     exemptions claimed on the federal return
should report the income you would have                                              amount of itemized deductions for both          except for the additional exemptions for
reported had you filed a separate federal                                            spouses cannot exceed the itemized deduc-       being 65 or over or blind.
return. The income from jointly held securi-                                         tions on the federal return.                         Complete the remainder of the form
ties, property, etc., must be divided evenly                                              If you choose to use the standard          using the instructions for each line. Each
between husband and wife.                                                            deduction method, use Worksheet 1 in            spouse should claim his or her own with-
      If you itemized your deductions on the                                         Instruction 16.                                 holding and other credits. Joint estimated
joint federal return, one spouse may use the                                              Each spouse must claim his or her          tax paid may be divided between the
standard deduction and the other spouse                                              own personal exemption. Each spouse             spouses in any manner provided the total
may claim their portion of the federal item-                                         may allocate the dependent exemptions in        claimed does not exceed the total estimat-
ized deductions. If both spouses choose to                                           any manner they choose. The total number        ed tax paid.

                              Part-year residents. If you began or ended legal residence in Maryland in 1997 go to Instruction 26.
9                             Military taxpayers. If you have non-Maryland military income go to Instruction 27.
                                                                                                                                                                               3
         Exemptions. Determine what exemptions you are entitled to, and complete the EXEMPTIONS area on the form.
10
        EXEMPTIONS ALLOWED                            In addition to the exemptions allowed                          Complete the exemption area on the
                                                 on your federal return, you and your                           front of Form 502 or 503 to determine the
     You are permitted the same number           spouse are permitted to claim exemptions                       amount of exemption allowance to subtract
of exemptions which you are permitted on         for being age 65 or over or for blindness.                     on line 58.
your federal return; however, the exemption      These additional exemptions are in the
amount is different on the Maryland return.      amount of $1,000 each.                                                    PART-YEAR RESIDENTS
Even if you are not required to file a federal        If “Other Dependents” are 65 or over,
return, the federal rules for exemptions still   you also receive an extra exemption of                              You must prorate your exemptions
apply to you. Refer to the federal income        $1,200 which is not permitted on the feder-                    based on percentage of your income sub-
tax instructions for further information.        al return. Complete the appropriate boxes.                     ject to Maryland tax. See Instruction 26.
          Income and adjustments. Copy the figures for INCOME and ADJUSTMENTS TO INCOME from your federal return
11        onto lines 1–17 of Form 502.

     Each line from line 1 to line 14 matches    dends from a mutual fund. Do not report                        cluded on this line should also be entered
an income line on the front of your federal      interest earned on your IRA or include any                     on line 27 as a subtraction from income.
Form 1040. Copy the amounts exactly onto         of this interest in your federal adjusted                           Line 13b. Taxable amount of social
Form 502. You must report all of your            gross income. Some of this interest which                      security and Tier 1 RR benefits. Partially
income, including income earned outside of       is exempt for federal purposes may be tax-                     taxable social security and Tier 1 RR bene-
Maryland. Copy the federal amounts exactly;      able for Maryland purposes. See Instruc-                       fits must be included on this line even
changes in the federal amounts are made          tion 12 (line 18).                                             though they are exempt from state tax.
under Additions to Income (lines 18-22) and           Line 9b. Taxable amount of IRA distri-                    These benefits should also be entered on
Subtractions from Income (lines 23-33).          bution. The taxable amount is not eligible                     line 27 as a subtraction from income.
                                                 for the Maryland pension exclusion.                                 Line 16. Copy the total of ADJUST-
       ADDITIONAL INFORMATION                         Line 9d. Taxable amount of total pen-                     MENTS TO INCOME from your federal
     Line 2b. Tax-exempt interest income.        sions and annuities. Fully taxable RR bene-                    Form 1040. Examples of adjustments are
If you received any tax-exempt interest          fits (Tier II, supplemental, etc.) must be                     IRA deductions and alimony paid. DO NOT
(state or municipal bond interest), report it    included on this line even though they are                     INCLUDE FEDERAL EXEMPTIONS OR
on line 2b. Include any exempt-interest divi-    exempt from state tax. All RR benefits in-                     ITEMIZED DEDUCTIONS ON THIS LINE.
          Additions to income. Determine which Additions to Income apply to you. Write the correct amounts on lines 18–21 of
12        Form 502. Instructions for each line:
                                                                               LUMP SUM DISTRIBUTION WORKSHEET
      Line 18. TAX-EXEMPT STATE OR
LOCAL BOND INTEREST. Enter the inter-                1. Ordinary income portion of distribution from Form 1099R reported
est included on line 2b from non-Maryland               on federal Form 4972 (taxable amount less capital gain amount) . . . . $____________
state or local bonds or other obligations            2. 40% of capital gain portion of distribution from Form 1099R . . . . . . . . $____________
(less related expenses). This includes               3. Add lines 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $____________
interest from mutual funds which invest in
non-Maryland state or local obligations.             4. Enter minimum distribution allowance from Form 4972 . . . . . . . . . . . . $____________
Interest earned on obligations of Maryland           5. Subtract line 4 from line 3. This is your addition to income for your lump
or any Maryland subdivision is exempt from              sum distribution. Enter on Form 502, line 20. If this amount is less than
Maryland tax and should not be entered on               zero, enter zero . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $____________
this line.                                           Note: If you were able to deduct the death benefit exclusion on Form 4972, allocate that exclusion between
      Line 19. TAX PREFERENCE ITEMS.                 the ordinary and capital gain portions of your distribution in the same ratio before completing this schedule.
If the total of your tax preference items is
less than $10,000 ($20,000 for married tax-      you, enter the total amount on line 21 and                     g. Income exempt from federal tax by fed-
payers filing joint returns) this addition to    identify each item using the code letter:                         eral law or treaty which is not exempt
income does not apply to you. Use federal                           CODE LETTER                                    from Maryland tax.
Form 6251 to determine your tax prefer-          w                                                              h. Net operating loss deduction to the
ence items (even if you are not required to      a. Part-year residents: losses or adjust-                         extent of a double benefit. Administra-
file Form 6251 with your federal return). If        ments to federal income which were                             tive Release No. 18 is available from
the total of your tax preference items is           realized or paid when you were a non-                          any office of the Comptroller.
$10,000 or more ($20,000 for married tax-           resident of Maryland. (Your total adjust-                   i. Pickup contributions of a State retire-
payers filing joint returns) you must com-          ments to income are shown on line 16                           ment or pension system member. The
plete and attach Maryland Form 502TP.               of Form 502.)                                                  pickup amount will be stated separately
Copy the amount from line 5 of Form              b. Net additions to income from partner-                          on your W-2 wage statement. The tax
502TP onto line 19 of Form 502.                     ship investments.                                              on this portion of your wages is deferred
      Line 20. LUMP SUM DISTRIBUTION             c. Net additions to income from a trust as                        for federal but not for state purposes.
FROM A QUALIFIED RETIREMENT                         reported by the fiduciary.                                  j. The amount claimed and allowed as a
PLAN. If you received such a distribution,       d. S corporation taxes included on line 8 of                      deduction for federal income tax pur-
you will receive a Form 1099R showing the           Maryland Form 502CR, Tax Credits for                           poses for expenses attributable to oper-
amounts distributed. You must report part           Income Taxes Paid to Other States.                             ating a family day care home or a child
of the lump sum distribution as an addition         (See instructions on the back of the                           care center in Maryland without having
to income if you file federal Form 4972.            Form 502CR.)                                                   the registration or license required by
                                                 e. Eligible wages paid in the current year                        the Family Law Article.
      Use the LUMP SUM DISTRIBUTION                 to the extent allowed as a credit on                        k. Eligible wages and child care expenses
WORKSHEET to determine the amount of                Form 500CR, Business Tax Credits.                              paid or provided for qualified employ-
your addition.                                   f. Oil percentage depletion allowance                             ment opportunity employees to the ex-
      Line 21. OTHER ADDITIONS TO                   claimed under Section 613 of the Inter-                        tent allowed as a credit on Form 500CR,
INCOME. If one or more of these apply to            nal Revenue Code.                                              Business Tax Credits.
4
          Subtractions from income. Determine which Subtractions from Income apply to you. You may not include the
13        same income in more than one subtraction item. Write the correct amounts on lines 23–32 of Form 502. Instructions for
          each line:
      Line 23. STATE TAX REFUNDS. Copy                     Line 26. PENSION EXCLUSION. You                which prevents you from engaging in sub-
onto line 23 the amount of state or local             may be able to subtract some of your tax-           stantial gainful activity. You must expect the
income tax refunds from line 4 of Form 502.           able pension and retirement annuity income.         impairment to be of long, continued or
      Line 24. CHILD CARE EXPENSES.                   This subtraction applies only if:                   indefinite duration or to result in your death.
You may subtract the cost of caring for your          a. You were 65 or over or totally disabled,         You must attach to your return a certifica-
dependents while you work. There is a lim-               or your spouse was totally disabled, on          tion from a qualified physician stating the
itation of $2,400 ($4,800 if two or more                 the last day of the tax year, AND                nature of your impairment and that you are
dependents receive care). Copy onto line              b. You included on your federal return              totally disabled. If you have previously sub-
24 the amount from line 3 of either federal              income received as a pension, annuity            mitted a physician’s certification, just attach
Form 2441 or Form 1040A Schedule 2.                      or endowment from an “employee retire-           your own statement that you are still totally
      Line 25. INCOME FROM U.S. GOV-                     ment system.” (An IRA, Keogh, or deferred        disabled and that a physician’s certification
ERNMENT OBLIGATIONS. Enter interest                      compensation plan does not qualify.)             was submitted before.
on U.S. savings bonds and other U.S. obli-                 Each spouse that receives taxable                    Complete the pension exclusion work-
gations. Capital gains from the sale or               pension or annuity income and is 65 or              sheet using total taxable pension and total
exchange of U.S. obligations should be                over or totally disabled may be entitled to         social security and railroad retirement bene-
included on this line. Dividends from mutu-           this exclusion. In addition, if you receive         fits as if you were a full-year resident. Pro-
al funds which invest in U.S. government              taxable pension or annuity income but you           rate the amount on line 5 by the number
obligations are also exempt from state tax-           are not 65 or totally disabled, you may be          of months of Maryland residence divided
ation. However, only that portion of the              entitled to this exclusion if your spouse is        by 12.
dividends attributable to interest or capital         totally disabled. Complete a separate col-                However, if you begin to receive your
gain from U.S. government obligations can             umn in the worksheet below for each spouse.         pension during the tax year you became a
be subtracted.                                        Combine your allowable exclusion and enter          Maryland resident, use a proration factor of
      You cannot subtract income from                 the total amount on line 26, Form 502.              the number of months you were a resident
Government National Mortgage Associ-                       To be considered totally disabled you          divided by the number of months the pen-
ation securities.                                     must have a mental or physical impairment           sion was received.


                      PENSION EXCLUSION COMPUTATION WORKSHEET

                                                                                                       TAXPAYER A                TAXPAYER B

  1. Net taxable pension and retirement annuity included as income
     (line 9d, Form 502) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   $                         $                      1.


  2. Maximum allowable exclusion               ............................                        $      15,000    00       $      15,000     00 2.

  3. Total benefits you received from social security and/or railroad
     retirement (Tier I and Tier II) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                         $                      3.


  4. Tentative exclusion (Subtract line 3 from line 2.) (If less than 0, enter 0.)                 $                         $                      4.

  5. Pension Exclusion (Write the smaller of line 1 or 4 here and on
     line 26, Form 502.) If you and your spouse both qualify for the pension
     exclusion, combine your allowable exclusions and enter the total
     amount on line 26, Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . .          $                         $                      5.


                                                    SPECIFIC INSTRUCTIONS
  Line 1.   Enter your net taxable pension and retirement annuity included as income on line 9d, Form 502.
  Line 2.   The maximum allowable exclusion is $15,000.
  Line 3.   Enter your total social security and/or railroad retirement benefits. Include all social security and/or railroad retire-
            ment benefits whether or not you included any portion of these amounts in your federal adjusted gross income.
            Include both Tier I and Tier II Railroad Retirement benefits. If you are filing a joint return and both spouses
            received social security income but only one spouse received a pension, enter only the social security income of
            the spouse receiving the pension on the worksheet.
  Line 4.   Subtract line 3 from line 2 to determine your tentative exclusion.
  Line 5.   Your pension exclusion is the smaller of your net taxable pension (line 1) or the tentative exclusion (line 4).
            Enter the smaller amount on this line.
  NOTE:     When both you and your spouse qualify for the pension exclusion, a separate column must be completed for
            each spouse.

                                                                                                                                                         5
     For example, Fred Taxpayer moved to          members of the household may be sub-                in your total income, line 15).
Maryland on March 1. If he started to             tracted. Complete the POVERTY LEVEL              b. Net allowable subtractions from income
receive his pension on March 1, he would          INCOME WORKSHEET to see if you qual-                from partnership investments.
prorate the pension exclusion by 10/10,           ify for this subtraction.                        c. Net subtractions from income reported
which would mean he would be entitled to                Line 29. NONRESIDENT INCOME. If               by a fiduciary.
the full pension exclusion. However, if he        you began or ended your residence in             d. Distributions of accumulated income by
began to receive his pension on February 1,       Maryland during the year, you may subtract          a fiduciary, if income tax has been paid
Fred would prorate his pension by 10/11.          the portion of your income received when            by the fiduciary to the State (but not
Please note that, in either case, the pro-        you were not a resident of Maryland. See            more than the amount of such income
ration factor may not exceed 1.                   Instruction 26 for part-year residents and          included in your total income, line 15).
     Complete the PENSION EXCLUSION               Instruction 27 for military personnel.           e. Profit from the sale or exchange of bonds
COMPUTATION WORKSHEET on page 5.                        If your state of residence or your peri-      issued by the State or local governments
Copy the amount from line 5 of the work-          od of Maryland residence was not the                of Maryland.
sheet onto line 26 of Form 502.                   same as that of your spouse and you filed        f. Benefits received from a Keogh plan on
     Line 27. FEDERALLY TAXED SOCIAL              a joint return, follow Instruction 26 (c)           which State income tax was paid prior to
SECURITY AND RAILROAD RETIRE-                     through (q).                                        1967. Attach statement.
MENT BENEFITS. If you included social                   Line 30. OTHER SUBTRACTIONS                g. Amortized expenses, incurred prior to
security or Tier I railroad retirement benefits   FROM INCOME. If one or more of these ap-            January 1, 1997, for preserving and
on line 13b or Tier II railroad retirement        ply to you, enter the total amount on line 30       rehabilitating historic structures. Qualifi-
benefits on line 9d of Form 502, then you         and identify each item using the code letter.       cations and instructions are on Maryland
must include the total amount of such                                                                 Form 502H.
benefits on line 27.                                            CODE LETTER                             NOTE: For expenditures incurred after
     Line 28. POVERTY LEVEL INCOME.               w                                                December 31, 1996, see instruction 21(e).
Earned income received by certain tax-            a. Pension and disability payments to            h. Amount of wages and salaries which
payers whose earned income and federal               firemen and policemen for job-related            were not allowed as a business
adjusted gross income are less than the              injuries or disabilities (but not more than      expense because you took the federal
poverty level income for the number of               the amount of such payments included             Targeted Jobs Credit.



                                  POVERTY LEVEL INCOME WORKSHEET
    If you checked filing status 4 or 7 on your Maryland return, you are not eligible for this subtraction.


    1a. Enter your federal adjusted gross                                                                       POVERTY
        income from line 17 of Form 502 . . . .$_____________
                                                                                                                 INCOME
      b. Enter any additions to income from                                                                    GUIDELINES
         line 22 of Form 502 . . . . . . . . . . . . . .$_____________
                                                                                                         Number of
      c. Add lines 1a and 1b . . . . . . . . . . . . . . . . . . . . . . . . . . $_____________          Exemptions
                                                                                                         on Federal            Income
                                                                                                           Return               Level
    2.    Enter the total of your salary, wages, tips and other
          employee compensation, and net profit from self-
                                                                                                               1              $ 7,890
          employment. This is determined by adding the amounts
          on lines 1, 6 and 11 of Form 502 (Do not include a farm
          or business loss.) Also include your distributive share of
                                                                                                               2              $10,610
          partnership or S corporation income from line 10 . . . . . $_____________
                                                                                                               3              $13,330
    3.    Find the number of exemptions in the chart that is the
                                                                                                               4              $16,050
          same as the number of exemptions entered on your fed-
          eral tax return. Enter the income level that corresponds
          to the exemption number . . . . . . . . . . . . . . . . . . . . . . . $_____________
                                                                                                               5              $18,770

                                                                                                               6              $21,490
    4.    Is the amount on line 3 larger than the amount on line 1c?
             Yes – Go to step 5.                                                                               7              $24,210
             No – You do not qualify for the subtraction.
                                                                                                               8              $26,930
    5.    Is the amount on line 3 larger than the amount on line 2?                                     If you have more than 8 exemp-
             Yes – Enter the amount from line 2 here and on line 28           $_____________            tions, add $2,720 to the last
             of your Form 502.                                                                          income level for each additional
                                                                                                        exemption.
             No – You do not qualify for the subtraction.



6
i. Expenses up to $5,000 incurred by a                the Maryland Department of Agriculture.         parent has elected to include in the par-
   blind person for a reader, or up to                Attach a copy of the certification.             ent’s federal adjusted gross income
   $1,000 incurred by an employer for a          q.   Up to $15,000 of military pay that you          under Internal Revenue Code Section
   reader for a blind employee.                       received while in the active service of         1(g)(7).
j. Expenses incurred for reforestation or             any branch of the armed forces and           u. Payments received from the State of
   timber stand improvement of commer-                which is attributable to service outside        Maryland under Title 12 Subtitle 2 of the
   cial forest land. Qualifications and in-           the boundaries of the U.S. or its posses-       Real Property Article. (Relocaton and
   structions are on Form DNR-393, avail-             sions. To compute the subtraction, follow       assistance payments)
   able from the Department of Natural                the directions on the MILITARY OVER-         v. Up to $2,500 of military retirement
   Resources, telephone (410) 260-8531.               SEAS INCOME WORKSHEET below. If                 income received by a qualifying individ-
k. The amount added to taxable income                 your total military pay exceeds $30,000,        ual during the taxable year. To qualify
   for the use of an official vehicle by a            you do not qualify for the subtraction.         you must be at least 55 years old on
   member of a state, county or local            r.   Unreimbursed vehicle travel expenses for:       the last day of the taxable year and
   police or fire department. The amount              1. a volunteer fire company;                    you must have been an enlisted mem-
   is stated separately on your W-2 form.                                                             ber of the military at the time of retire-
                                                      2. service as a volunteer for a chari-
l. Up to $3,000 in expenses incurred by                                                               ment. To compute the subtraction, fol-
                                                          table organization whose principal
   parents who adopt a child with special                                                             low the directions on the MILITARY
                                                          purpose is to provide medical, health
   needs through a public or nonprofit                                                                RETIREMENT INCOME WORKSHEET.
                                                          or nutritional care; AND
   adoption agency and up to $2,000 in                                                                If your federal adjusted gross income
   expenses incurred by parents who                   3. assistance (other than providing             exceeds $22,500, you do not qualify
   adopt a child without special needs.                   transportation to and from the school)      for the subtraction.
m. Purchase and installation costs of cer-                for handicapped students at a Maryland   w. $3,000 for each taxpayer who is a
   tain conservation tillage equipment as                 community college.                          qualifying volunteer fire, rescue, or emer-
   certified by the Maryland Department               Attach Maryland Form 502V to claim              gency medical services member as certi-
   of Agriculture. Attach a copy of the               this subtraction from income.                   fied by a Maryland fire, rescue, or emer-
   certification.                                s.   Amount of pickup contribution shown on          gency medical services organization.
n. Deductible artist’s contribution. Attach           Form 1099R from the state retirement or         Attach a copy of the certification report.
   a copy of Maryland Form 502AC.                     pension systems included in federal               Line 32. TWO-INCOME SUBTRAC-
o. Payment received by a volunteer under              adjusted gross income. The subtraction is    TION. You may subtract up to $1,200 if
   a fire, rescue, or ambulance personnel             limited to the amount of pickup contribu-    both spouses have any income subject
   length of service award program that               tion stated on the 1099R or the pension,     to Maryland tax and you file a joint return.
   is funded by any county or municipal               whichever is less. Excess contribution       To compute the subtraction complete
   corporation of the State.                          may be carried forward to the next year.     the TWO-INCOME MARRIED COUPLE
p. The value of farm products you donated        t.   The amount of interest and dividend          SUBTRACTION WORKSHEET on the
   to a gleaning cooperative as certified by          income of a dependent child which the        next page.



              q. MILITARY OVERSEAS                                                      v. MILITARY RETIREMENT
                 INCOME WORKSHEET                                                          INCOME WORKSHEET
    1. ENTER the amount of military pay                                         1. ENTER your military retirement
       attributable to service outside the                                         income. If more than $2,500,
       U.S., but, if greater than $15,000,                                         enter $2,500 . . . . . . . . . . . . . . . . .$__________
       enter $15,000 . . . . . . . . . . . . . . . .$__________
                                                                                2. ENTER your federal
    2. ENTER total military                                                        adjusted gross income. .$__________
       pay received during
       the taxable year . . . . .$__________                                    3. SUBTRACT this
                                                                                   amount from the
                                15,000.00                                                                    17,500.00
                                                                                   amount on line 2 . . . .$__________
    3. Maximum subtraction . .$__________
                                                                                4. ENTER the difference
    4. SUBTRACT the amount on line 3                                               between line 2 and 3.
       from line 2. If this amount is less                                         If less than zero (0)
       than zero (0), enter zero (0) . . . . . .$__________                        enter zero (0) . . . . . . .$__________
    5. SUBTRACT line 4 from line 1.                                             5. MULTIPLY the amount on line 4
       This is your subtraction from income.                                       by 50% (.50) . . . . . . . . . . . . . . . . .$__________
       If the amount is zero (0) or less, you
       are not eligible for any subtraction.                                    6. SUBTRACT the amount on line 5
       INCLUDE this amount on line 30                                              from the amount on line 1. INCLUDE
       of Form 502 . . . . . . . . . . . . . . . . . .$__________                  this amount on line 30 of Form 502 . .$__________




                                                                                                                                                7
       TWO-INCOME MARRIED COUPLE SUBTRACTION WORKSHEET


                                                                                                                      (a) you         (b) your spouse


     1. ENTER the portion of federal adjusted gross income from line 17 of Form 502
        attributable to each spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     2. ENTER the portion of additions to income from line 22 of Form 502
        attributable to each spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

     3. ADD lines 1 and 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     4. ENTER the portion of subtractions from income from line 31 of Form 502
        attributable to each spouse. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

     5. SUBTRACT line 4 from line 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
     6. COMPARE the amounts on lines 5 (a) and (b) and enter the smaller amount here
        but not less than zero. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

     7. ENTER $1,200 or the amount on line 6, whichever is less. . . . . . . . . . . . . . . . . . . . . . . . .
         ENTER the amount on line 7 on line 32 of Form 502.



            Itemized deductions. If you figure your tax by the ITEMIZED DEDUCTION METHOD, complete lines 34 to 36 on
14          Maryland Form 502. (See Instruction 16 to see if you will use the ITEMIZED DEDUCTION METHOD.)

USE FEDERAL FORM 1040 SCHEDULE A                      Form 502. Complete lines 35-36 following                  NOTE: Certain high-income taxpayers
    To use the ITEMIZED DEDUCTION                     instructions on the form.                            are required to reduce their federal item-
METHOD, you must itemize your deduc-                       You are not required to itemize deduc-          ized deductions. If you had to reduce your
tions on your federal return and com-                 tions on your Maryland return simply                 total federal itemized deductions, use the
plete federal Form 1040 Schedule A.                   because you itemized on your federal                 worksheet below to calculate the amount of
Copy the amount from Schedule A, line 28,             return. Figure your tax each way to deter-           state and local taxes to be entered on line
Total Itemized Deductions, on line 34 of              mine which method is best for you.                   35 of Form 502.



                                       ITEMIZED DEDUCTION WORKSHEET
            (To be used only by high-income taxpayers who were required to reduce their federal itemized deductions)



    1. ENTER the amount from line 28 of federal Schedule A. . . . . . . . . . . . . . . . . . . . . . . .$_______________

    2. ENTER the total of lines 4, 9, 14, 18, 19, 26, and 27 of federal Schedule A. . . . . . . . .$_______________

    3. DIVIDE line 1 by line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_______________

    4. ENTER the amount of state and local income taxes from line 5 of federal Schedule A. . . .$_______________

    5. MULTIPLY line 4 by line 3. This is the amount you must subtract on line 35 of Form 502. . .$_______________




            Figure your Maryland adjusted gross income. (Line numbers 37 to 50 are not used.) Complete lines 51–55, using
15          the figures from the front of the form. Line 55 is your Maryland adjusted gross income.


8
          Figure your Maryland taxable income. To find your taxable income you must subtract either the standard deduc-
16        tion from a worksheet below or the itemized deductions you have entered on line 36 of your return. The ITEMIZED
          DEDUCTION METHOD will lower your taxes if you have enough deductions. If you are not certain about which method to
          use, figure your tax both ways to determine which method is best for you. Check the box on line 56 to show which
          method you will use. Follow these instructions:

     STANDARD DEDUCTION METHOD                          ITEMIZED DEDUCTION METHOD                                   EXEMPTIONS
         (Check the box on line 56)                        (Check the box on line 56)                      After completing the Exemption Area
      The STANDARD              DEDUCTION                You may itemize your deductions only        on your Form 502 or Form 503, enter the
METHOD gives you a standard deduction              if you itemized deductions on your federal        total exemption amount on line 58. Line 59
of 15% of Maryland adjusted gross income           return. See Instruction 14 for completing         will be your Maryland taxable income.
(line 55) with minimums of $1,500 and              lines 34-36 of Form 502. Copy the amount
                                                                                                           PART-YEAR RESIDENTS AND
$3,000 and maximums of $2,000 and                  from line 36 onto line 56.
                                                                                                       NONRESIDENT MILITARY TAXPAYERS
$4,000, depending on your filing status.                 You are not required to itemize deduc-
Use the worksheet on this page for your            tions on your Maryland return simply                   You must adjust your standard or item-
filing status to figure your standard deduc-       because you itemized on your federal              ized deductions and exemptions. If you are
tion. Write the result on line 56. Then follow     return. Figure your tax each way to deter-        a part-year resident, see Instruction 26. If
the instructions for EXEMPTIONS.                   mine which method is best for you.                you are a nonresident military member fil-
                                                                                                     ing a joint return with your civilian spouse,
                                                                                                     see Instruction 27.


                                Figure your standard deduction
                                                 If your filing status is:
                             • Single                                                        • Married filing jointly
                • Married filing separately                                                   • Head of household
                             or                                                                        or
                  • Dependent taxpayer                                                       • Qualifying widow(er)
              Use Worksheet 1, below.                                                    Use Worksheet 2, below.
                                 w                                                                          w
                         Worksheet 1                                                                Worksheet 2

  If your income on                                   Your standard         If your income on                                   Your standard
  line 55 is between:                                  deduction is:        line 55 is between:                                  deduction is:
                                                                1,500
  $1 - 10,000 . . . . . . . . . . . . . . . . . . . . . . . .$ _______                                                                    3,000
                                                                            $1 - 20,000 . . . . . . . . . . . . . . . . . . . . . . . .$ _______
                                 or                                                                        or
  If your income on line 55 is between $10,000-13,333                       If your income on line 55 is between $20,000-26,667
  Enter income from line 55: . . . . . . . . . . . . .$ _______             Enter income from line 55: . . . . . . . . . . . . .$ _______
                                                             .15
  Multiply by 15 percent (.15) . . . . . . . . . . . . .X _______                                                                      .15
                                                                            Multiply by 15 percent (.15) . . . . . . . . . . . . .X _______
  This is your standard deduction . . . . . . . . . .$ _______              This is your standard deduction . . . . . . . . . .$ _______
                                 or                                                                        or
  If your income on                                   Your standard         If your income on                                   Your standard
  line 55 is:                                          deduction is:        line 55 is:                                          deduction is:
                                                              2,000
  $13,333 or over . . . . . . . . . . . . . . . . . . . . .$ _______                                                                    4,000
                                                                            $26,667 or over . . . . . . . . . . . . . . . . . . . . .$ _______

     Enter your standard deduction on line 56.                                 Enter your standard deduction on line 56.




          Figure your Maryland tax. You must use the tax table if your taxable income is less than $100,000.
17
     Find the income range in the tax table        tax corresponding to your income range.           $100,000 or more, use the Maryland Tax
that applies to the amount you reported on         Enter the tax amount on line 60 of your           Computation Worksheet at the end of the
line 59 of your return. Find the Maryland          return. If your taxable income on line 59 is      tax table.

                                                                                                                                                   9
          Earned income credit. You may claim a credit on line 61 equal to one-half of the earned income credit on your
18        federal return.

     If you claimed an earned income credit        line 60, put zero on line 62a.                   your Maryland credit cannot give you a refund
on your federal return, then you may claim              If you are a part-year resident (see        greater than the amount of tax withheld.
one-half (50%) of the federal credit on your       Instruction 26), you must prorate your                If you filed a joint federal return, but a
Maryland return. Write one-half the federal        earned income credit on the basis of the         separate Maryland return, you may claim a
credit on line 61 of Form 502. If the amount       number of months you were a resident.            combined total of up to one-half the federal
on line 61 is greater than the amount on                Unlike the federal earned income credit,    credit.

          Local income tax. Maryland counties and Baltimore City may levy an income tax which is up to 60% of the State
19        income tax. Use the LOCAL TAX RATE CHART and the LOCAL TAX WORKSHEET to figure your local income tax. Use the
          county (or Baltimore City) you resided in on the last day of the tax year and which you showed in the box at the top of
          Form 502 or 503. Military taxpayers should refer to Instruction 27.
     SPECIAL NOTE: If you and your                 taxing area block on the front of Form 502.           If the local tax rates are different,
spouse were domiciled in different taxing               If the local tax rates are the same,        calculate the local tax separately using the
jurisdictions, you should file separate Mary-      enter the total local tax on line 62b from the   appropriate worksheet for each spouse
land returns even though you filed a joint         local tax worksheet and attach a statement       based on the ratio of each spouse’s
federal return. (See Instruction 7.) However,      showing the local tax for each jurisdiction      income to the Maryland adjusted gross
if you choose to file a joint Maryland return,     based on the ratio of each spouse’s income       income. Enter the combined local tax on
please use the following instructions.             to the Maryland adjusted gross income. Also      line 62b of Form 502. Note the words “sep-
     Enter both counties and/or local juris-       note the words “separate jurisdictions” on       arate jurisdictions” on line 62b. Attach a
dictions in the county, city, town or special      line 62b.                                        statement showing your calculations.

                           LOCAL TAX RATE CHART                                                       LOCAL TAX WORKSHEET
     Subdivision                Rate             Subdivision                   Rate
                                                                                              1. ENTER the Maryland tax from
     Baltimore City             50%              Harford County                50%               line 62a of Form 502 or 503 . .$__________
     Allegany County            60%              Howard County                 50%
     Anne Arundel County        50%              Kent County                   50%            2. ENTER the local tax rate
     Baltimore County           55%              Montgomery County             60%               from chart. Change the
     Calvert County             50%              Prince George’s County        60%               percent to a decimal
     Caroline County            60%              Queen Anne’s County           55%                                                    .
                                                                                                 (Example: 50% = .50) . . . . . .X__________
     Carroll County             58%              St. Mary’s County             60%
     Cecil County               50%              Somerset County               60%            3. MULTIPLY line 1 by line 2.
     Charles County             50%              Talbot County                 40%               This is your local income tax.
     Dorchester County          50%              Washington County             50%               Copy this amount onto line 62b
     Frederick County           50%              Wicomico County               60%               of Form 502 or 503 . . . . . . . .$__________
     Garrett County             50%              Worcester County              30%


          Total Maryland tax, local tax and contributions. Add your adjusted Maryland tax from line 62a and your local
20        income tax from line 62b and enter on line 62c. Add any contribution amounts from boxes 63a and 63b and enter the
          total on line 63. Enter the total of lines 62c and 63 on line 64.
         CHESAPEAKE BAY AND                           FAIR CAMPAIGN FINANCING FUND                       IMPORTANT: If there are not sufficient
      ENDANGERED SPECIES FUND                           You may contribute any amount you           credits (lines 65-68) or other payments to
     You may contribute any amount you             wish up to $500 ($1,000 if you file a joint      satisfy your tax and the contribution you
wish to this fund. The amount contributed          return). The amount contributed will reduce      have designated, the contribution amounts
will reduce your refund or increase your           your refund or increase your balance due.        will be reduced. If you have entered
balance due. See page 27 of this packet                                                             amounts for contribution to both funds, any
for additional information.                                                                         reduction will be applied proportionately.

          Taxes paid and credits. Write your taxes paid and credits on lines 65-68. Instructions for each line:
21
     Line 65. Write the total Maryland state       c. Payment made with a request for an            Form 502. See instructions on Form 502CR.
and local tax withheld as shown on the                automatic extension of time to file your            NOTE: You must attach a copy of
wage and tax statements (Forms W-2, W-2G              1997 return. (See the instructions on         Form 502CR and a copy of the tax return
or 1099) you have received. Add up the                Form 502E in this tax booklet.)               filed in the other state. If these are not
amounts identified as Maryland tax with-                NOTE: Estimated tax payments are            attached, no credit will be allowed.
held on each form and write the total on           required if you expect to receive any
line 65. Attach Forms W-2, W-2G and 1099           income (like pensions, business income,                Line 68. Business tax credits are
to your return if Maryland tax is withheld.        capital gains, lottery, etc.) from which no      allowed against the tax for the following
     IMPORTANT: Your wage and tax                  tax or not enough Maryland tax will be with-     expenses:
statements contain many numbers. Be                held. Read the instructions on the back of       a. Certain wages paid to qualifying em-
sure you add only the amounts identified           Form 502D, DECLARATION OF ESTIMAT-                   ployees in an officially designated enter-
as Maryland tax withheld.                          ED MARYLAND INCOME TAX.                              prise zone, as established by the Mary-
     Line 66. Enter on line 66 the total of:            Line 67. If you are entitled to credit          land Department of Labor, Licensing and
a. Maryland estimated tax payments,                for taxes paid to another state, complete            Regulation. For additional information
b. Amount of overpayment applied from              and attach Form 502CR. Copy the amount               regarding enterprise zones and locations,
    1996 return, AND                               from line 8 of Form 502CR onto line 67 of            contact that Department.
10
b. Certain wages paid to qualifying employ-          to purchase alternative fuel and electric     f. A qualifying cogenerator, as determined
   ment opportunity employees and expens-            vehicles and for certain property in-            under the Public Utility Regulatory Policies
   es incurred to provide or pay for approved        stalled on a vehicle for the purpose of          Act of 1978, may be eligible for a credit
   day care services for a child or children of      permitting the vehicle to be propelled by        against the State income tax for the pur-
   an employment opportunity employee recip-         certain alternative fuels may be eligible        chase of Maryland-mined coal.
   ient as certified by the Maryland Depart-         for a tax credit based on the amount          g. Individuals certified by Baltimore City or
   ment of Labor, Licensing and Regulation.          allowed for federal purposes.                    Baltimore County as qualified for the
     NOTE: If you claim a business tax            e. 10% of your qualified rehabilitation             neighborhood preservation credit may
credit for either items (a) or (b) or both, an       expenditures as certified by the Mary-           claim a credit equal to the property
addition to income must be included on line          land Historical Trust. Qualifications and        tax credit granted by Baltimore City or
21. See Instruction 12.                              instructions are on Form 502H.                   Baltimore County. Attach a copy of the
c. Certain wages paid to qualified employ-             NOTE: If you must complete Form                certification.
   ees or $1,000 or $1,500 times the num-         500CR to claim a business tax credit, enter           Enter the amount of your credit on line
   ber of qualified employees. This credit        the credit amount from Form 502H on              68 and check the appropriate box. If you
   applies to those business entities that        Form 500CR.                                      qualify for both business and rehabilitation
   have been certified by the Secretary of             For additional information regard-          tax credits and the neighborhood preserva-
   Business and Economic Development              ing any of the above income tax credits,         tion credit, add the allowable credit from
   as having created 60 qualified positions       see the instructions provided for Form           Form 500CR and the neighborhood preser-
   or 30 high-paying qualified positions.         500CR, Business Tax Credits. Form                vation credit, enter the total on line 68 and
d. Certain expenses provided for under the        500CR is available from the Maryland             check both boxes.
   Clean Fuel Vehicle Tax Credit program          Revenue Administration Division.

          Overpayment or balance due. Calculate the Balance Due (line 70) or Overpayment (line 71). Read instructions under
22        UNDERPAYMENT OF ESTIMATED TAX and then go to BALANCE DUE or OVERPAYMENT.

 UNDERPAYMENT OF ESTIMATED TAX                       quarterly as required, is equal to or more                  OVERPAYMENT
     If you had income from which tax was            than one-fourth of last year’s taxes, OR           If you have an overpayment on line 71,
not withheld or did not have enough tax with-     c. You made quarterly payments during the        the Revenue Administration Division will
held during the year, you may have owed              year which equal 90% of this year’s tax.      refund any amount of $1.00 or more. If you
an estimated tax. All taxpayers should refer           Special rules apply if your gross           want part or all of your overpayment
to Form 502UP (in this booklet) to deter-         income from farming or fishing is at least       applied to your 1998 estimated tax, then
mine if they owe interest because they paid       two-thirds of your total estimated gross         write the amount you want applied on line
too little estimated tax during the year.         income. See the back of Form 502UP for           72. If you must pay interest for underpay-
     If you owe interest, then complete           additional information and instructions for      ment of estimated tax, enter the amount of
Form 502UP and write the amount of inter-         claiming this exemption from interest.           interest from line 18 of Form 502UP on line
est (line 18 of Form 502UP) on line 74.                           BALANCE DUE                      74. Subtract lines 72 and 74 from your
Attach Form 502UP.                                     If you have a balance due on line 70,       overpayment (line 71). This is the amount
     Generally, you do not owe interest if:       add this amount to any amount on line 74.        of your refund. Write this amount on line
a. You owe less than $250 tax on income           Put the total on line 75. Pay this amount        73. No refunds of less than $1.00 will be
   which is not subject to Maryland with-         (unless it is less than $1.00). Go to Instruc-   sent. Go to Instructions 23 and 24 regard-
   holding, OR                                    tions 23 and 24 regarding signatures,            ing signatures, attachments and mailing.
b. Each current year payment, made                attachments and mailing.

          Signature, telephone numbers, code number and attachments. Sign and date your return and enter your
23        telephone numbers. Be sure to attach all required forms, schedules and statements.

                SIGNATURES                        preparer declares that the return is based       code number box located to the right of the
     You must sign your return. Both hus-         on all information required to be reported of    signature area.
band and wife must sign a joint return. Your      which the preparer has knowledge, under
signature(s) signify that your return, includ-    the penalties of perjury.                                      ATTACHMENTS
ing all attachments, is, to the best of your                    CODE NUMBER                             Be sure to attach wage and tax state-
knowledge and belief, true, correct and                If your gross income from farming or        ments (Form W-2, W-2G and 1099) to the
complete, under the penalties of perjury.         fishing is at least two-thirds of your total     front of your return if Maryland tax is
     If a power of attorney is necessary,         estimated gross income or if other special       withheld. Also attach all forms, schedules
complete federal Form 2848 and attach to          circumstances apply, you may be exempt           and statements required by these instruc-
your return.                                      from the interest for underpayment of esti-      tions. Place your check or money order on
             TAX PREPARERS                        mated tax. Refer to Form 502UP for addi-         top of your wage and tax statements and
     If another person prepared your return,      tional information. If you are exempt, enter     fasten with one staple on the front of your
that person must also sign the return. The        the appropriate code (300, 301, 302) in the      tax return.

          Mailing instructions and deadlines.
24
         MAILING INSTRUCTIONS                             PAYMENT INSTRUCTIONS                                     DUE DATE
    Mail your return in the gold envelope             Make your check or money order pay-                Returns must be mailed by April 15,
provided in this booklet. If the gold enve-       able to “Comptroller of the Treasury.” Use       1998, for calendar year taxpayers. Persons
lope is lost, mail your return to:                blue or black ink. Do not use red ink. Put       filing on a fiscal-year basis should see
       Comptroller of the Treasury                your social security number, type of tax         Instruction 25.
       Revenue Administration Division            and year of tax being paid, on your check.
       Annapolis, Maryland 21411-0001             Mark an “X” in the box for “Payment
    If you use a private delivery service,        Enclosed” on the gold envelope. DO NOT
see page 16.                                      SEND CASH.
                                                                                                                                                11
     EXTENSION OF TIME TO FILE                    1997 return. Filing this form extends the        expected tax due is required with Form
    Use Form 502E to request an auto-             time to file your return, but does not extend    502E by April 15, 1998.
matic extension of the time to file your          the time to pay your taxes. Payment of the


           Fiscal year. You must file your Maryland return using the same tax year and the same basis (cash or accrual) as you
25         used on your federal return.

    To file a fiscal year return, complete        ever the term “tax year” appears in these        years which end during calendar year 1998.
the Fiscal Year information at the top of         instructions, fiscal year taxpayers should            Fiscal year returns are due on the 15th
Form 502, and print “FY” in bold letters in the   understand the term to mean “fiscal year.”       day of the 4th month following the close of
upper left hand corner of the form. When-         Use the 1997 forms in this package for fiscal    the fiscal year.


           Special instructions for part-year residents. Your return must show all income reported on your federal return,
26         regardless of when or where earned. However, you are permitted to subtract income received when not a resident of
           Maryland. The following instructions describe the adjustments which must be made for a part-year resident return and
           returns filed by certain military taxpayers (see Instruction 27) and married couples who file a joint return when one
           spouse is not a resident of Maryland.
a. You must file Form 502; you cannot use         h. Complete the INCOME AND ADJUST-                  using the Maryland income factor. Cal-
   Form 503.                                         MENTS FROM FEDERAL RETURN                        culate the full standard deduction using
b. Whenever the term “tax year” is used in           area (lines 1–17). You must report all           a worksheet in Instruction 16. Prorate
   these instructions, it means that portion         income in this area exactly as it is listed      the standard deduction using the follow-
   of the year in which you were a resident          on your federal return.                          ing formula:
   of Maryland. If you began residence in         i. Complete the ADDITIONS TO INCOME                    FULL        MARYLAND  PRORATED
   Maryland in 1997, the last day of the             area using Instruction 12. If you had            STANDARD        INCOME = STANDARD
   “tax year” was December 31, 1997. If              losses or adjustments to income on               DEDUCTION       FACTOR   DEDUCTION
   you ended residence in Maryland in                your federal return, write on line 21
   1997, the last day of the “tax year” was          those loss or adjustment items which          m. Enter the prorated amount on line 56 of
   the day before you established resi-              were realized or paid when you were              Form 502.
   dence in another state.                           not a resident of Maryland. (Your total       o. The value of your exemptions (line 58)
c. Complete the name and address infor-              adjustments to income are shown on               must be prorated using the Maryland
   mation at the top of the Form 502.                line 16.)                                        income factor. Prorate the exemption
                                                  j. Complete the SUBTRACTIONS FROM                   amount using the following formula:
d. Complete the county, city, town or tax-
                                                     INCOME area using Instruction 13. You
   ing area information using Instruction 6.                                                            TOTAL        MARYLAND  PRORATED
                                                     may include only subtractions from
   Use the county, city, town or taxing area                                                          EXEMPTION       INCOME = EXEMPTION
                                                     income that apply to income subject
   of which you were a resident on the last                                                            AMOUNT         FACTOR    AMOUNT
                                                     to Maryland tax. Include on line 29 any
   day of your Maryland residence.
                                                     income received during the part of the        m. Enter the prorated amount on line 58 of
e. Complete the filing status area using             year when you were not a resident of             Form 502.
   the same filing status that you used on           Maryland.
   your federal return. Married couples                                                            p. You must prorate your earned income
                                                  k. Transfer the totals from lines 17, 22 and
   who file joint federal returns may file                                                            credit (if any) on the basis of the num-
                                                     33 to the back of the form on the appro-
   separate Maryland returns under                                                                    ber of months you were a resident. Pro-
                                                     priate lines and follow the line instruc-
   certain circumstances. See Instruction 7.                                                          rate the earned income credit using the
                                                     tions to calculate Maryland adjusted
   If you are a dependent taxpayer, use                                                               following formula:
                                                     gross income (line 55).
   filing status 7.
                                                  l. You must adjust your standard or item-
                                                                                                      1
                                                                                                       ⁄2 FEDERAL                    PRORATED
f.   Complete the EXEMPTIONS area. You               ized deductions and exemptions based                EARNED      MONTHS           EARNED
     can claim the same number of exemp-             on the percentage of your income sub-                INCOME        OF       12 = INCOME
     tions that were claimed on your federal         ject to Maryland tax. Complete the                   CREDIT    RESIDENCE          CREDIT
     return. Additional exemptions are               worksheet below to figure the per-
     allowed for age and blindness for Mary-                                                       m. Enter the prorated amount on line 61 of
                                                     centage of Maryland income to total              Form 502.
     land purposes which will be computed            income. The factor cannot exceed 1
     in this area.                                   (100%). If the amount on line 51 is           q. Complete the remainder of the form
g. Complete the PART-YEAR RESI-                      zero or a negative amount, your factor           using the line instructions.
   DENTS area on the front of Form 502.              is 1 (100%). Another method of allocat-
   Check the box and show the dates of               ing itemized deductions may be allowed
   residence in Maryland. Certain military           if you receive written approval prior to         MARYLAND INCOME FACTOR
   taxpayers following these instructions            the filing of your return.
   should check the box and write “MILI-          m. If you itemize deductions, complete            1. Enter amount from
   TARY” in the dates of residence area.             lines 34–36. Prorate the itemized                 line 55 of Form 502      $ _________
   Married taxpayers with different taxable          deductions using the following formula:
   periods should follow the remainder of                                                           2. Enter amount from
   this instruction and write “different tax-            NET         MARYLAND  MARYLAND                line 51 of Form 502      $ _________
   able periods” in the dates of residence            ITEMIZED        INCOME = ITEMIZED
   area if they file a joint Maryland return.        DEDUCTIONS       FACTOR  DEDUCTIONS            3. Divide line 1 above by
   Married taxpayers who file a joint return                                                           line 2. Carry this amount to
   when one spouse is not a resident of           m. Enter the prorated amount on line 56 of           at least 2 decimal places.
   Maryland should check the part-year               Form 502.                                         The factor cannot exceed
   resident box and enter the name and            n. If you are not itemizing deductions, you          1 (100%). If greater than
                                                                                                       1, enter 1.                 _________
   the other state of residence of the non-          must use the standard deduction. The
   resident spouse.                                  standard deduction must be prorated

12
       Special instructions for military taxpayers.
27
                                          Military personnel who are legal residents of Maryland


1—without overseas pay                                                        Must file a resident return (Form 502 or 503) and report all income
                                                                              from all sources, wherever earned. You must calculate the local por-
                                                                              tion of the tax regardless of whether you were stationed in Maryland
                                                                              or not. The location of your legal residence determines which county
                                                                              should be entered on Form 502. See Instructions 6 and 19.

2—with overseas pay                                                           Same as above, may subtract up to $15,000 in military pay earned
                                                                              outside U.S. boundaries or possessions, depending upon total
                                                                              income.


                                        Military personnel who are legal residents of another state


 1—with military income only                                                 Not required to file a Maryland return.

 2—with military income and other income outside Maryland                    Not required to file a Maryland return.

 3—with military and other income earned in Maryland, single or with         Must file a nonresident return (Form 505), reporting total income,
   an unemployed civilian spouse                                             subtracting military pay, unearned and non-Maryland income, then
                                                                             computing the tax on Maryland earned income only. Deductions and
                                                                             exemptions must be apportioned using the ratio of Maryland income
                                                                             to federal adjusted gross income.

 4—with military income, and civilian spouse employed in Maryland,           Military person and civilian spouse must file a joint nonresident
   residing in Maryland less than six months                                 return (Form 505), subtracting military pay, unearned and non-
                                                                             Maryland income, computing the tax on Maryland income only.
                                                                             Deductions and exemptions must be apportioned using the ratio of
                                                                             Maryland income to federal adjusted gross income.

 5—with military income, and civilian spouse with any income residing        The civilian taxpayer becomes a statutory resident because of resi-
   in Maryland more than six months                                          dency in Maryland more than six months of the taxable year and the
                                                                             couple may file a joint resident return (Form 502) or the civilian
                                                                             spouse may file a separate resident return. If the civilian spouse files
                                                                             a separate resident return, the military spouse is not required to file
                                                                             a Maryland return. If you are not certain which filing status to use,
                                                                             figure your tax both ways to determine which status is best for you.
                                                                                   If the civilian spouse files a separate resident return, see Instruc-
                                                                             tion 8. If the couple files a joint return, report your federal adjusted
                                                                             gross income on your Maryland return. Subtract military pay and the
                                                                             military taxpayer’s portion of any investment income (interest, divi-
                                                                             dends, etc.) from the joint federal adjusted gross income. See Instruc-
                                                                             tion 26 (c) through (k) in the resident booklet.
                                                                                   The Maryland tax is then computed based on the balance of the
                                                                             total income. The standard deduction or itemized deductions and
                                                                             exemptions must be adjusted using the ratio of Maryland adjusted
                                                                             gross income to federal adjusted gross income. In this situation,
                                                                             Worksheet A on the next page should be used to compute the
                                                                             amount of itemized deductions and the allowable exemptions.

 6—with military income and other income in Maryland and civilian            The civilian taxpayer becomes a statutory resident because of resi-
   spouse with any income residing in Maryland for more than six             dency for more than six months of the taxable year. The military
   months                                                                    spouse remains a nonresident for purposes of Maryland taxation. The
                                                                             military taxpayer may file a separate nonresident return (Form 505)
                                                                             and the civilian spouse may file a separate resident return (Form
                                                                             502). (See Instruction 8.) However, if the couple chooses to file a joint
                                                                             resident return (Form 502):
                                                                                   • The military taxpayer’s Maryland income is not subject to the
                                                                                      local tax. (Enter the word “MILITARY” on line 62b.)
                                                                                   • Standard or itemized deductions and exemptions must be
                                                                                      adjusted, using a ratio of Maryland adjusted gross income to
                                                                                      federal adjusted gross income.
                                                                                   • The local tax must be adjusted using Worksheet B. In this
                                                                                      situation, Worksheets A and B should be used to compute
                                                                                      the adjustment to the standard deduction or itemized deduc-
                                                                                      tions and exemptions and to compute the local tax for the
                                                                                      civilian taxpayer.

 7—both spouses in the military and not domiciled in Maryland and            Must file a joint nonresident return. Exemptions and the standard
   one or both have Maryland income                                          deduction or itemized deductions must be adjusted.

 Military personnel should be aware that there may be provisions for tax credits granted either by Maryland or another state. See Maryland Form
 502CR and instructions. Read carefully the instructions provided by the state of legal residence for any possible credits allowed by that state.


                                                                                                                                                           13
                                                                Military Worksheet A
                        To be used to adjust the standard deduction or itemized deductions and exemption amount
                               for nonresident military personnel filing jointly with resident civilian taxpayer.

     1. ENTER federal adjusted gross income from line 17 of Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     2. ENTER Maryland adjusted gross income from line 55 of Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     3. DIVIDE line 2 by line 1; carry to 2 decimal places (not to exceed 100%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     4. ENTER the total standard deduction from the appropriate standard deduction worksheet in Instruction 16
        of the resident tax booklet or itemized deductions from line 36 of Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     5. MULTIPLY line 4 by the factor on line 3. This is your adjusted standard deduction or itemized deductions.
        ENTER on line 56 of Form 502 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     6. ENTER the total exemption amount from the “EXEMPTIONS” area on the front of Form 502 (line E). . . . . . . . . .$_____________

     7. MULTIPLY line 6 by the factor on line 3. If this is less than $1,200 enter $1,200. ENTER this amount on
        line 58 of Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________




                                                                Military Worksheet B
                                              (Complete lines 51-62(a) on Form 502 before doing this worksheet)

                               To be used to calculate the local income tax of the resident civilian taxpayer filing
                                    jointly with the nonresident military taxpayer having Maryland income.


     1. ENTER Maryland adjusted gross income from line 55. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     2. ENTER income of civilian taxpayer. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     3. DIVIDE line 2 by line 1; carry to 2 decimal places (not to exceed 100%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     4. ENTER the amount of state tax from line 62a on Form 502. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$_____________

     5. MULTIPLY line 4 by line 3 and ENTER this amount on line 1 of the local tax worksheet in Instruction 19
        of the instruction book. Also enter the word “MILITARY” on line 62b of Form 502. . . . . . . . . . . . . . . . . . . . . . . .$_____________




             Filing return of deceased taxpayer. Do not use the preprinted label. Special instructions for the return of a taxpayer
28           who died during the tax year:


              FILING THE RETURN                                                JOINT RETURN                                             ALL OTHER RETURNS
     If an individual required to file an                           If the spouse of the deceased taxpay-                       If the return is filed by the personal
income tax return dies, the final income tax                  er filed a joint federal return with the dece-               representative, write the words “Estate of”
return shall be filed:                                        dent, then a joint Maryland return must be                   before the decedent’s first name and the
                                                              filed.                                                       date of death after the last name. The
a. by the personal representative of the                            The word “DECEASED” and the date                       name and position of the person filing
   individual’s estate;                                       of death should be written after the dece-                   the return should be clearly noted on
                                                              dent’s name at the top of the form. The                      the form. Attach a copy of the Letters of
b. if there is no personal representative, by                 name and position of any person, other                       Administration.
   the decedent’s surviving spouse; or                        than the surviving spouse, filing the return                      If there is no personal representative,
                                                              should be clearly noted on the form. Attach                  write the word “deceased” and the date of
c. jointly by the personal representatives                    a copy of the Letters of Administration or, if               death after the decedent’s last name. The
   of each if both husband and wife are                       the return is filed solely by the surviving                  name and position of the person filing the
   deceased.                                                  spouse, attach a death certificate.                          return should be clearly noted on the form.
                                                                                                                           Attach a copy of federal Form 1310.


14
         Amended returns. If you need to change a return which you have already filed, or if the Internal Revenue Service
29       changes your return, you must file an amended return.


     FILING AN AMENDED RETURN                         IF YOUR ORIGINAL RETURN                        A claim for refund based on a federal net
                                                          SHOWED A REFUND                       operating loss carryback must be filed within
      You must file an amended return to                                                        three years from the due date of the return
                                                    If you expect a refund from your origi-
make certain changes on your original                                                           for the tax year of the net operating loss.
                                               nal return, do not file an amended return
return. These include changes in income,                                                             If the claim for refund resulted from a
                                               until you have received your refund check.
filing status, amount of deductions, the                                                        federal adjustment or final decision of a
                                               Then cash the check; do not return it. If
number of exemptions, and the amount                                                            federal court which is more than three
                                               your amended return shows a smaller
of Additions to Income and Subtractions                                                         years from the date of filing the return or
                                               refund, send a check for the difference with
from Income.                                                                                    more than two years from the time the tax
                                               the amended return. If your amended
      Use Form 502X to file an amended                                                          was paid, a claim for refund must be filed
                                               return shows a larger refund, the Revenue
return.                                                                                         within one year from the date of the adjust-
                                               Administration Division will issue an addi-
                                               tional refund check.                             ment or final decision.
  CHANGES IN YOUR FEDERAL TAX                                                                        If the claim for refund resulted from a
                                                       ADDITIONAL INFORMATION                   notification received from another state for
     If the Internal Revenue Service makes          Do not file an amended return until         income taxes due which is more than three
any changes on your federal return, you        sufficient time has passed to allow the orig-    years from the date of filing the return or
must notify the State of Maryland. Send        inal return to be processed. For current         more than two years from the time the
notification to the Maryland Revenue           year returns, allow at least six weeks.          tax was paid, a claim for refund resulting
Administration Division within 90 days of           Generally, you must file your claim for     from a credit for taxes paid to that state
the final determination of the changes by      refund within three years from the date          must be filed within one year of the date of
the IRS.                                       your original return was filed or within two     the notification.
     If you file an amended federal return     years from the date the tax was paid,                 No refund for less than $1.00 will be
which changes your Maryland return, you        whichever is later. A return filed early is      issued. No payment of less than $1.00 is
must file an amended Maryland return.          considered filed on the date it was due.         required.



         Privacy act information.
30
     The Tax-General Article of the Anno-           If you fail to provide all or part of the   certain rights to amend or correct them.
tated Code of Maryland authorizes the          requested information, then exemptions,               As authorized by law, information fur-
Revenue Administration Division to request     exclusions, credits, deductions, or adjust-      nished to the Revenue Administration Divi-
information on tax returns to administer the   ments may be disallowed and you may              sion may be given to the United States
income tax laws of Maryland, including         owe more tax. In addition, the law provides      Internal Revenue Service, a proper official
determination and collection of correct        penalties for failing to supply information      of any state that exchanges tax information
taxes. Code Section 10-804 says that           required by law or regulations.                  with Maryland, and to an officer of this
you must include your social security num-          You may look at any records held by the     State having a right to the information in
ber on what you file. This is so we know       Revenue Administration Division which con-       that officer’s official capacity. The informa-
who you are and can process your return        tain personal information about you. You         tion may be obtained in accordance with a
and papers.                                    may inspect such records, and you have           proper legislative or judicial order.




                                                                                                                                           15
     What you should send us . . .
     123              1997               A Maryland income tax return. (Form 123, 502, or 503)
         or
         503               1997
                                         W-2s showing Maryland tax withheld.
              or
                                         A check or money order payable to Comptroller of the
              502               7
                             1996         Treasury if you have a balance due. Be sure to write your
                                          social security number on your check or money order.

                   Do
                                         Maryland schedules that may be required according to
                                          the instructions if you claim certain credits or subtractions.
                   send your              (502CR, 500CR, 502H, 502TP, 502UP, 502V)
                   Maryland
                   form(s)
                                         A copy of the tax return you filed in the other state if you’re
                                          claiming credit on Form 502CR.
                                         IMPORTANT: Please keep copies of all federal forms and
                                          schedules and any other documents that may be required
                                          later to substantiate your Maryland return. Also, be sure to
                                          keep a copy of your Maryland income tax return.

     Don’t send us . . .
     #   Any federal forms or schedules.
     #   Any forms or statements that we have not requested because they will not be retained.


     How to assemble your Maryland return
                     Form 502                              Form 503                          Form 123
               500CR          1997                       503           1997                123       1997
                 502CR          1997
                   502           1997

                                                         w- 2     1997                     w- 2   1997
                                                         Check or
                    w- 2      1997          one staple                        one staple
                                                         money order
                    Check or
     one staple
                    money order




     If you send your return by a private delivery service . . .
     Maryland accepts returns delivered by private companies approved by the IRS. You must
     use approved overnight one- or two-day service. For details, see “Notice on Use of a Private
     Delivery Service” on the Comptroller’s website at www.comp.state.md.us, order document
     5140 from Index 2 from the Forms-by-Fax system by calling 410-974-FAXX, or call Taxpayer
     Service at 410-974-3981 from central Maryland or 1-800-MD TAXES from elsewhere. If you
     use a private delivery service, you must provide the carrier with our street address:

                                            Comptroller of the Treasury
                                            Revenue Administration Bldg.
                                            110 Carroll Street
                                            Annapolis, MD 21411
16
             Maryland Forms and Information Pamphlets
      For a complete list of state tax forms and instructions, see the comptroller’s website at www.comp.state.md.us.
       Use the four-digit code numbers to obtain the following documents by calling Forms-by-Fax at 410-974-3299.

Form Number            Description                                                              Forms-by-Fax Number
Individual income tax forms
MTT                    Maryland tax table                                                                               1221
123                    Special refund request for single residents not required to file                                 1201
502                    Resident individual income tax return (long form)                                                1202
                       Instructions 1-6 general                                                                         1222
                       Instructions 7-8 filing status                                                                   1223
                       Instructions 10-12 exemptions, adjustments and additions                                         1224
                       Instruction 13 subtractions                                                                      1225
                       Instructions 14-16 deductions                                                                    1226
                       Instructions 18-20 earned income credit, local income tax and contributions                      1227
                       Instructions 21-22 credits, refunds and balance due                                              1228
                       Instruction 26 part-year residents                                                               1229
                       Instruction 27 military taxpayers                                                                1230
                       Instructions 28-29 deceased taxpayers and amended returns                                        1231
502AC                  Subtraction for contribution of artwork                                                          1204
502CR                  Credit for taxes paid to another state                                                           1205
502D                   Individual declaration of estimated tax                                                          1206
502E                   Individual application for extension of time to file                                             1207
502H                   Subtraction of expenses for preservation of historic property                                    1208
502INJ                 Injured spouse claim form                                                                        1209
502TP                  Computation of tax preference income                                                             1210
502UP                  Computation of interest due for underpayment of individual estimated income tax                  1211
502V                   Use of vehicle for charitable purposes                                                           1212
502X                   Amended individual income tax return and instructions                                            1213
503                    Resident individual income tax return (short form)                                               1203
504                    Fiduciary income tax return and instructions                                                     1214
504D                   Fiduciary declaration of estimated tax                                                           1215
504E                   Fiduciary application for extension of time to file                                              1216
505                    Nonresident individual income tax return                                                         1217
                       Nonresident instructions                                                                         1218
515                    Special nonresident individual local income tax return                                           1219
515INST                Instructions for special nonresident individual local income tax return                          1220
Tax Tip 50             Families and Maryland income taxes                                                               5000
Tax Tip 51             Senior citizens and Maryland income taxes                                                        5001
Tax Tip 52             Were you a resident in Maryland for part of the year?                                            5002
Tax Tip 53             Civil service retirees and Maryland income taxes                                                 5003
Tax Tip 54             Should you pay estimated tax to Maryland?                                                        5004
Tax Tip 55             Filing facts for military personnel and their families                                           5005
Tax Tip 56             When you live in one state and work in another                                                   5006
Other                  A brief look at Maryland taxes                                                                   3001

Corporation income tax forms
500                    Corporation income tax return and instructions                                                   2108
500CR                  Business tax credits                                                                             2112
500D                   Corporation estimated income tax return                                                          2109
500E                   Corporation application for extension of time to file                                            2110
500UP                  Underpayment of estimated income tax by corporations and pass-through entities                   2113
500X                   Amended corporation income tax return and instructions                                           2111
510                    Pass-through entity income tax return and instructions                                           2114
510D                   Pass-through entity estimated income tax return                                                  2115
510E                   Pass-through entity application for extension of time to file                                    2116
Other                  Opening a new business in Maryland?                                                              4013

These forms and pamphlets, as well as individual tax booklets, nonresident individual tax booklets, corporation tax booklets
and pass-through entity tax booklets, may also be obtained from the comptroller’s website at www.comp.state.md.us or any
of the taxpayer service offices listed on the back cover of the individual tax booklet. To obtain documents from Forms-by-Fax
call 410-974-3299. Refer to the back cover of this booklet for more information.
                                                                                                                                17
     INSTRUCTIONS:                      1997 MARYLAND TAX TABLE
     1. Find the income range that applies to the amount you reported on line 59 of your return.
     2. Find the Maryland tax corresponding to your income range.
     3. Enter the tax amount on line 60 of your return.
     4. This table does not include the local income tax.
     5. If your taxable income on line 59 is $100,000 or more, use the Maryland Tax Computation Worksheet at the end of the tax table.
    If your income                         If your income                         If your income                         If your income                         If your income
 from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
     At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
   least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
               than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
$1,000       $1,050      $1,00                 3,000                                  6,000                                  9,000                                 12,000
      50          75           1        3,000        3,050          91         6,000        6,050         241          9,000        9,050        391         12,000      12,050         541
      75         100           2        3,050        3,100          94         6,050        6,100         244          9,050        9,100        394         12,050      12,100         544
     100         150           3        3,100        3,150          96         6,100        6,150         246          9,100        9,150        396         12,100      12,150         546
     150         200           4        3,150        3,200          99         6,150        6,200         249          9,150        9,200        399         12,150      12,200         549
     200         250           5        3,200        3,250         101         6,200        6,250         251          9,200        9,250        401         12,200      12,250         551
     250         300           6        3,250        3,300         104         6,250        6,300         254          9,250        9,300        404         12,250      12,300         554
     300         350           7        3,300        3,350         106         6,300        6,350         256          9,300        9,350        406         12,300      12,350         556
     350         400           8        3,350        3,400         109         6,350        6,400         259          9,350        9,400        409         12,350      12,400         559
     400         450           9        3,400        3,450         111         6,400        6,450         261          9,400        9,450        411         12,400      12,450         561
     450         500          10        3,450        3,500         114         6,450        6,500         264          9,450        9,500        414         12,450      12,500         564
     500         550          11        3,500        3,550         116         6,500        6,550         266          9,500        9,550        416         12,500      12,550         566
     550         600          12        3,550        3,600         119         6,550        6,600         269          9,550        9,600        419         12,550      12,600         569
     600         650          13        3,600        3,650         121         6,600        6,650         271          9,600        9,650        421         12,600      12,650         571
     650         700          14        3,650        3,700         124         6,650        6,700         274          9,650        9,700        424         12,650      12,700         574
     700         750          15        3,700        3,750         126         6,700        6,750         276          9,700        9,750        426         12,700      12,750         576
     750        800           16        3,750        3,800         129         6,750        6,800         279          9,750       9,800         429         12,750      12,800         579
     800        850           17        3,800        3,850         131         6,800        6,850         281          9,800       9,850         431         12,800      12,850         581
     850        900           18        3,850        3,900         134         6,850        6,900         284          9,850       9,900         434         12,850      12,900         584
     900        950           19        3,900        3,950         136         6,900        6,950         286          9,900       9,950         436         12,900      12,950         586
     950      1,000           20        3,950        4,000         139         6,950        7,000         289          9,950      10,000         439         12,950      13,000         589

        1,000                                  4,000                                  7,000                                 10,000                                 13,000
 1,000        1,050           21        4,000        4,050         141         7,000        7,050         291         10,000      10,050         441         13,000      13,050         591
 1,050        1,100           22        4,050        4,100         144         7,050        7,100         294         10,050      10,100         444         13,050      13,100         594
 1,100        1,150           24        4,100        4,150         146         7,100        7,150         296         10,100      10,150         446         13,100      13,150         596
 1,150        1,200           25        4,150        4,200         149         7,150        7,200         299         10,150      10,200         449         13,150      13,200         599
 1,200        1,250           27        4,200        4,250         151         7,200        7,250         301         10,200      10,250         451         13,200      13,250         601
 1,250        1,300           28        4,250        4,300         154         7,250        7,300         304         10,250      10,300         454         13,250      13,300         604
 1,300        1,350           30        4,300        4,350         156         7,300        7,350         306         10,300      10,350         456         13,300      13,350         606
 1,350        1,400           31        4,350        4,400         159         7,350        7,400         309         10,350      10,400         459         13,350      13,400         609
 1,400        1,450           33        4,400        4,450         161         7,400        7,450         311         10,400      10,450         461         13,400      13,450         611
 1,450        1,500           34        4,450        4,500         164         7,450        7,500         314         10,450      10,500         464         13,450      13,500         614
 1,500        1,550           36        4,500        4,550         166         7,500        7,550         316         10,500      10,550         466         13,500      13,550         616
 1,550        1,600           37        4,550        4,600         169         7,550        7,600         319         10,550      10,600         469         13,550      13,600         619
 1,600        1,650           39        4,600        4,650         171         7,600        7,650         321         10,600      10,650         471         13,600      13,650         621
 1,650        1,700           40        4,650        4,700         174         7,650        7,700         324         10,650      10,700         474         13,650      13,700         624
 1,700        1,750           42        4,700        4,750         176         7,700        7,750         326         10,700      10,750         476         13,700      13,750         626
 1,750        1,800           43        4,750        4,800         179         7,750        7,800         329         10,750      10,800         479         13,750      13,800         629
 1,800        1,850           45        4,800        4,850         181         7,800        7,850         331         10,800      10,850         481         13,800      13,850         631
 1,850        1,900           46        4,850        4,900         184         7,850        7,900         334         10,850      10,900         484         13,850      13,900         634
 1,900        1,950           48        4,900        4,950         186         7,900        7,950         336         10,900      10,950         486         13,900      13,950         636
 1,950        2,000           49        4,950        5,000         189         7,950        8,000         339         10,950      11,000         489         13,950      14,000         639

        2,000                                  5,000                                  8,000                                 11,000                                 14,000
 2,000        2,050           51        5,000        5,050         191         8,000        8,050         341         11,000      11,050         491         14,000      14,050         641
 2,050        2,100           53        5,050        5,100         194         8,050        8,100         344         11,050      11,100         494         14,050      14,100         644
 2,100        2,150           55        5,100        5,150         196         8,100        8,150         346         11,100      11,150         496         14,100      14,150         646
 2,150        2,200           57        5,150        5,200         199         8,150        8,200         349         11,150      11,200         499         14,150      14,200         649
 2,200        2,250           59        5,200        5,250         201         8,200        8,250         351         11,200      11,250         501         14,200      14,250         651
 2,250        2,300           61        5,250        5,300         204         8,250        8,300         354         11,250      11,300         504         14,250      14,300         654
 2,300        2,350           63        5,300        5,350         206         8,300        8,350         356         11,300      11,350         506         14,300      14,350         656
 2,350        2,400           65        5,350        5,400         209         8,350        8,400         359         11,350      11,400         509         14,350      14,400         659
 2,400        2,450           67        5,400        5,450         211         8,400        8,450         361         11,400      11,450         511         14,400      14,450         661
 2,450        2,500           69        5,450        5,500         214         8,450        8,500         364         11,450      11,500         514         14,450      14,500         664
 2,500        2,550           71        5,500        5,550         216         8,500        8,550         366         11,500      11,550         516         14,500      14,550         666
 2,550        2,600           73        5,550        5,600         219         8,550        8,600         369         11,550      11,600         519         14,550      14,600         669
 2,600        2,650           75        5,600        5,650         221         8,600        8,650         371         11,600      11,650         521         14,600      14,650         671
 2,650        2,700           77        5,650        5,700         224         8,650        8,700         374         11,650      11,700         524         14,650      14,700         674
 2,700        2,750           79        5,700        5,750         226         8,700        8,750         376         11,700      11,750         526         14,700      14,750         676
 2,750        2,800           81        5,750        5,800         229         8,750        8,800         379         11,750      11,800         529         14,750      14,800         679
 2,800        2,850           83        5,800        5,850         231         8,800        8,850         381         11,800      11,850         531         14,800      14,850         681
 2,850        2,900           85        5,850        5,900         234         8,850        8,900         384         11,850      11,900         534         14,850      14,900         684
 2,900        2,950           87        5,900        5,950         236         8,900        8,950         386         11,900      11,950         536         14,900      14,950         686
 2,950        3,000           89        5,950        6,000         239         8,950        9,000         389         11,950      12,000         539         14,950      15,000         689

18                                                                                                                                                           Continued on Next Page
                                       1997 MARYLAND TAX TABLE
                                                                                   Continued:



   If your income                         If your income                         If your income                         If your income                         If your income
from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
    At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
  least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
              than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
      15,000                                 18,000                                 21,000                                 24,000                                 27,000
15,000      15,050          691        18,000      18,050         841         21,000      21,050         991         24,000      24,050       1,141         27,000      27,050       1,291
15,050      15,100          694        18,050      18,100         844         21,050      21,100         994         24,050      24,100       1,144         27,050      27,100       1,294
15,100      15,150          696        18,100      18,150         846         21,100      21,150         996         24,100      24,150       1,146         27,100      27,150       1,296
15,150      15,200          699        18,150      18,200         849         21,150      21,200         999         24,150      24,200       1,149         27,150      27,200       1,299
15,200      15,250          701        18,200      18,250         851         21,200      21,250       1,001         24,200      24,250       1,151         27,200      27,250       1,301
15,250      15,300          704        18,250      18,300         854         21,250      21,300       1,004         24,250      24,300       1,154         27,250      27,300       1,304
15,300      15,350          706        18,300      18,350         856         21,300      21,350       1,006         24,300      24,350       1,156         27,300      27,350       1,306
15,350      15,400          709        18,350      18,400         859         21,350      21,400       1,009         24,350      24,400       1,159         27,350      27,400       1,309
15,400      15,450          711        18,400      18,450         861         21,400      21,450       1,011         24,400      24,450       1,161         27,400      27,450       1,311
15,450      15,500          714        18,450      18,500         864         21,450      21,500       1,014         24,450      24,500       1,164         27,450      27,500       1,314
15,500      15,550          716        18,500      18,550         866         21,500      21,550       1,016         24,500      24,550       1,166         27,500      27,550       1,316
15,550      15,600          719        18,550      18,600         869         21,550      21,600       1,019         24,550      24,600       1,169         27,550      27,600       1,319
15,600      15,650          721        18,600      18,650         871         21,600      21,650       1,021         24,600      24,650       1,171         27,600      27,650       1,321
15,650      15,700          724        18,650      18,700         874         21,650      21,700       1,024         24,650      24,700       1,174         27,650      27,700       1,324
15,700      15,750          726        18,700      18,750         876         21,700      21,750       1,026         24,700      24,750       1,176         27,700      27,750       1,326
15,750      15,800          729        18,750      18,800         879         21,750      21,800       1,029         24,750      24,800       1,179         27,750      27,800       1,329
15,800      15,850          731        18,800      18,850         881         21,800      21,850       1,031         24,800      24,850       1,181         27,800      27,850       1,331
15,850      15,900          734        18,850      18,900         884         21,850      21,900       1,034         24,850      24,900       1,184         27,850      27,900       1,334
15,900      15,950          736        18,900      18,950         886         21,900      21,950       1,036         24,900      24,950       1,186         27,900      27,950       1,336
15,950      16,000          739        18,950      19,000         889         21,950      22,000       1,039         24,950      25,000       1,189         27,950      28,000       1,339

      16,000                                 19,000                                 22,000                                 25,000                                 28,000
16,000      16,050          741        19,000      19,050         891         22,000      22,050       1,041         25,000      25,050       1,191         28,000      28,050       1,341
16,050      16,100          744        19,050      19,100         894         22,050      22,100       1,044         25,050      25,100       1,194         28,050      28,100       1,344
16,100      16,150          746        19,100      19,150         896         22,100      22,150       1,046         25,100      25,150       1,196         28,100      28,150       1,346
16,150      16,200          749        19,150      19,200         899         22,150      22,200       1,049         25,150      25,200       1,199         28,150      28,200       1,349
16,200      16,250          751        19,200      19,250         901         22,200      22,250       1,051         25,200      25,250       1,201         28,200      28,250       1,351
16,250      16,300          754        19,250      19,300         904         22,250      22,300       1,054         25,250      25,300       1,204         28,250      28,300       1,354
16,300      16,350          756        19,300      19,350         906         22,300      22,350       1,056         25,300      25,350       1,206         28,300      28,350       1,356
16,350      16,400          759        19,350      19,400         909         22,350      22,400       1,059         25,350      25,400       1,209         28,350      28,400       1,359
16,400      16,450          761        19,400      19,450         911         22,400      22,450       1,061         25,400      25,450       1,211         28,400      28,450       1,361
16,450      16,500          764        19,450      19,500         914         22,450      22,500       1,064         25,450      25,500       1,214         28,450      28,500       1,364
16,500      16,550          766        19,500      19,550         916         22,500      22,550       1,066         25,500      25,550       1,216         28,500      28,550       1,366
16,550      16,600          769        19,550      19,600         919         22,550      22,600       1,069         25,550      25,600       1,219         28,550      28,600       1,369
16,600      16,650          771        19,600      19,650         921         22,600      22,650       1,071         25,600      25,650       1,221         28,600      28,650       1,371
16,650      16,700          774        19,650      19,700         924         22,650      22,700       1,074         25,650      25,700       1,224         28,650      28,700       1,374
16,700      16,750          776        19,700      19,750         926         22,700      22,750       1,076         25,700      25,750       1,226         28,700      28,750       1,376
16,750      16,800          779        19,750      19,800         929         22,750      22,800       1,079         25,750      25,800       1,229         28,750      28,800       1,379
16,800      16,850          781        19,800      19,850         931         22,800      22,850       1,081         25,800      25,850       1,231         28,800      28,850       1,381
16,850      16,900          784        19,850      19,900         934         22,850      22,900       1,084         25,850      25,900       1,234         28,850      28,900       1,384
16,900      16,950          786        19,900      19,950         936         22,900      22,950       1,086         25,900      25,950       1,236         28,900      28,950       1,386
16,950      17,000          789        19,950      20,000         939         22,950      23,000       1,089         25,950      26,000       1,239         28,950      29,000       1,389

      17,000                                 20,000                                 23,000                                 26,000                                 29,000
17,000      17,050          791        20,000      20,050         941         23,000      23,050       1,091         26,000      26,050       1,241         29,000      29,050       1,391
17,050      17,100          794        20,050      20,100         944         23,050      23,100       1,094         26,050      26,100       1,244         29,050      29,100       1,394
17,100      17,150          796        20,100      20,150         946         23,100      23,150       1,096         26,100      26,150       1,246         29,100      29,150       1,396
17,150      17,200          799        20,150      20,200         949         23,150      23,200       1,099         26,150      26,200       1,249         29,150      29,200       1,399
17,200      17,250          801        20,200      20,250         951         23,200      23,250       1,101         26,200      26,250       1,251         29,200      29,250       1,401
17,250      17,300          804        20,250      20,300         954         23,250      23,300       1,104         26,250      26,300       1,254         29,250      29,300       1,404
17,300      17,350          806        20,300      20,350         956         23,300      23,350       1,106         26,300      26,350       1,256         29,300      29,350       1,406
17,350      17,400          809        20,350      20,400         959         23,350      23,400       1,109         26,350      26,400       1,259         29,350      29,400       1,409
17,400      17,450          811        20,400      20,450         961         23,400      23,450       1,111         26,400      26,450       1,261         29,400      29,450       1,411
17,450      17,500          814        20,450      20,500         964         23,450      23,500       1,114         26,450      26,500       1,264         29,450      29,500       1,414
17,500      17,550          816        20,500      20,550         966         23,500      23,550       1,116         26,500      26,550       1,266         29,500      29,550       1,416
17,550      17,600          819        20,550      20,600         969         23,550      23,600       1,119         26,550      26,600       1,269         29,550      29,600       1,419
17,600      17,650          821        20,600      20,650         971         23,600      23,650       1,121         26,600      26,650       1,271         29,600      29,650       1,421
17,650      17,700          824        20,650      20,700         974         23,650      23,700       1,124         26,650      26,700       1,274         29,650      29,700       1,424
17,700      17,750          826        20,700      20,750         976         23,700      23,750       1,126         26,700      26,750       1,276         29,700      29,750       1,426
17,750      17,800          829        20,750      20,800         979         23,750      23,800       1,129         26,750      26,800       1,279         29,750      29,800       1,429
17,800      17,850          831        20,800      20,850         981         23,800      23,850       1,131         26,800      26,850       1,281         29,800      29,850       1,431
17,850      17,900          834        20,850      20,900         984         23,850      23,900       1,134         26,850      26,900       1,284         29,850      29,900       1,434
17,900      17,950          836        20,900      20,950         986         23,900      23,950       1,136         26,900      26,950       1,286         29,900      29,950       1,436
17,950      18,000          839        20,950      21,000         989         23,950      24,000       1,139         26,950      27,000       1,289         29,950      30,000       1,439

                                                                                                                                                   Continued on Next Page                   19
                                        1997 MARYLAND TAX TABLE
                                                                                    Continued:



    If your income                         If your income                         If your income                         If your income                         If your income
 from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
     At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
   least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
               than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
       30,000                                 33,000                                 36,000                                 39,000                                 42,000
 30,000      30,050         1,441       33,000      33,050       1,591         36,000      36,050       1,741         39,000      39,050       1,891         42,000      42,050       2,041
 30,050      30,100         1,444       33,050      33,100       1,594         36,050      36,100       1,744         39,050      39,100       1,894         42,050      42,100       2,044
 30,100      30,150         1,446       33,100      33,150       1,596         36,100      36,150       1,746         39,100      39,150       1,896         42,100      42,150       2,046
 30,150      30,200         1,449       33,150      33,200       1,599         36,150      36,200       1,749         39,150      39,200       1,899         42,150      42,200       2,049
 30,200      30,250         1,451       33,200      33,250       1,601         36,200      36,250       1,751         39,200      39,250       1,901         42,200      42,250       2,051
 30,250      30,300         1,454       33,250      33,300       1,604         36,250      36,300       1,754         39,250      39,300       1,904         42,250      42,300       2,054
 30,300      30,350         1,456       33,300      33,350       1,606         36,300      36,350       1,756         39,300      39,350       1,906         42,300      42,350       2,056
 30,350      30,400         1,459       33,350      33,400       1,609         36,350      36,400       1,759         39,350      39,400       1,909         42,350      42,400       2,059
 30,400      30,450         1,461       33,400      33,450       1,611         36,400      36,450       1,761         39,400      39,450       1,911         42,400      42,450       2,061
 30,450      30,500         1,464       33,450      33,500       1,614         36,450      36,500       1,764         39,450      39,500       1,914         42,450      42,500       2,064
 30,500      30,550         1,466       33,500      33,550       1,616         36,500      36,550       1,766         39,500      39,550       1,916         42,500      42,550       2,066
 30,550      30,600         1,469       33,550      33,600       1,619         36,550      36,600       1,769         39,550      39,600       1,919         42,550      42,600       2,069
 30,600      30,650         1,471       33,600      33,650       1,621         36,600      36,650       1,771         39,600      39,650       1,921         42,600      42,650       2,071
 30,650      30,700         1,474       33,650      33,700       1,624         36,650      36,700       1,774         39,650      39,700       1,924         42,650      42,700       2,074
 30,700      30,750         1,476       33,700      33,750       1,626         36,700      36,750       1,776         39,700      39,750       1,926         42,700      42,750       2,076
 30,750      30,800         1,479       33,750      33,800       1,629         36,750      36,800       1,779         39,750      39,800       1,929         42,750      42,800       2,079
 30,800      30,850         1,481       33,800      33,850       1,631         36,800      36,850       1,781         39,800      39,850       1,931         42,800      42,850       2,081
 30,850      30,900         1,484       33,850      33,900       1,634         36,850      36,900       1,784         39,850      39,900       1,934         42,850      42,900       2,084
 30,900      30,950         1,486       33,900      33,950       1,636         36,900      36,950       1,786         39,900      39,950       1,936         42,900      42,950       2,086
 30,950      31,000         1,489       33,950      34,000       1,639         36,950      37,000       1,789         39,950      40,000       1,939         42,950      43,000       2,089

       31,000                                 34,000                                 37,000                                 40,000                                 43,000
 31,000      31,050         1,491       34,000      34,050       1,641         37,000      37,050       1,791         40,000      40,050       1,941         43,000      43,050       2,091
 31,050      31,100         1,494       34,050      34,100       1,644         37,050      37,100       1,794         40,050      40,100       1,944         43,050      43,100       2,094
 31,100      31,150         1,496       34,100      34,150       1,646         37,100      37,150       1,796         40,100      40,150       1,946         43,100      43,150       2,096
 31,150      31,200         1,499       34,150      34,200       1,649         37,150      37,200       1,799         40,150      40,200       1,949         43,150      43,200       2,099
 31,200      31,250         1,501       34,200      34,250       1,651         37,200      37,250       1,801         40,200      40,250       1,951         43,200      43,250       2,101
 31,250      31,300         1,504       34,250      34,300       1,654         37,250      37,300       1,804         40,250      40,300       1,954         43,250      43,300       2,104
 31,300      31,350         1,506       34,300      34,350       1,656         37,300      37,350       1,806         40,300      40,350       1,956         43,300      43,350       2,106
 31,350      31,400         1,509       34,350      34,400       1,659         37,350      37,400       1,809         40,350      40,400       1,959         43,350      43,400       2,109
 31,400      31,450         1,511       34,400      34,450       1,661         37,400      37,450       1,811         40,400      40,450       1,961         43,400      43,450       2,111
 31,450      31,500         1,514       34,450      34,500       1,664         37,450      37,500       1,814         40,450      40,500       1,964         43,450      43,500       2,114
 31,500      31,550         1,516       34,500      34,550       1,666         37,500      37,550       1,816         40,500      40,550       1,966         43,500      43,550       2,116
 31,550      31,600         1,519       34,550      34,600       1,669         37,550      37,600       1,819         40,550      40,600       1,969         43,550      43,600       2,119
 31,600      31,650         1,521       34,600      34,650       1,671         37,600      37,650       1,821         40,600      40,650       1,971         43,600      43,650       2,121
 31,650      31,700         1,524       34,650      34,700       1,674         37,650      37,700       1,824         40,650      40,700       1,974         43,650      43,700       2,124
 31,700      31,750         1,526       34,700      34,750       1,676         37,700      37,750       1,826         40,700      40,750       1,976         43,700      43,750       2,126
 31,750      31,800         1,529       34,750      34,800       1,679         37,750      37,800       1,829         40,750      40,800       1,979         43,750      43,800       2,129
 31,800      31,850         1,531       34,800      34,850       1,681         37,800      37,850       1,831         40,800      40,850       1,981         43,800      43,850       2,131
 31,850      31,900         1,534       34,850      34,900       1,684         37,850      37,900       1,834         40,850      40,900       1,984         43,850      43,900       2,134
 31,900      31,950         1,536       34,900      34,950       1,686         37,900      37,950       1,836         40,900      40,950       1,986         43,900      43,950       2,136
 31,950      32,000         1,539       34,950      35,000       1,689         37,950      38,000       1,839         40,950      41,000       1,989         43,950      44,000       2,139

       32,000                                 35,000                                 38,000                                 41,000                                 44,000
 32,000      32,050         1,541       35,000      35,050       1,691         38,000      38,050       1,841         41,000      41,050       1,991         44,000      44,050       2,141
 32,050      32,100         1,544       35,050      35,100       1,694         38,050      38,100       1,844         41,050      41,100       1,994         44,050      44,100       2,144
 32,100      32,150         1,546       35,100      35,150       1,696         38,100      38,150       1,846         41,100      41,150       1,996         44,100      44,150       2,146
 32,150      32,200         1,549       35,150      35,200       1,699         38,150      38,200       1,849         41,150      41,200       1,999         44,150      44,200       2,149
 32,200      32,250         1,551       35,200      35,250       1,701         38,200      38,250       1,851         41,200      41,250       2,001         44,200      44,250       2,151
 32,250      32,300         1,554       35,250      35,300       1,704         38,250      38,300       1,854         41,250      41,300       2,004         44,250      44,300       2,154
 32,300      32,350         1,556       35,300      35,350       1,706         38,300      38,350       1,856         41,300      41,350       2,006         44,300      44,350       2,156
 32,350      32,400         1,559       35,350      35,400       1,709         38,350      38,400       1,859         41,350      41,400       2,009         44,350      44,400       2,159
 32,400      32,450         1,561       35,400      35,450       1,711         38,400      38,450       1,861         41,400      41,450       2,011         44,400      44,450       2,161
 32,450      32,500         1,564       35,450      35,500       1,714         38,450      38,500       1,864         41,450      41,500       2,014         44,450      44,500       2,164
 32,500      32,550         1,566       35,500      35,550       1,716         38,500      38,550       1,866         41,500      41,550       2,016         44,500      44,550       2,166
 32,550      32,600         1,569       35,550      35,600       1,719         38,550      38,600       1,869         41,550      41,600       2,019         44,550      44,600       2,169
 32,600      32,650         1,571       35,600      35,650       1,721         38,600      38,650       1,871         41,600      41,650       2,021         44,600      44,650       2,171
 32,650      32,700         1,574       35,650      35,700       1,724         38,650      38,700       1,874         41,650      41,700       2,024         44,650      44,700       2,174
 32,700      32,750         1,576       35,700      35,750       1,726         38,700      38,750       1,876         41,700      41,750       2,026         44,700      44,750       2,176
 32,750      32,800         1,579       35,750      35,800       1,729         38,750      38,800       1,879         41,750      41,800       2,029         44,750      44,800       2,179
 32,800      32,850         1,581       35,800      35,850       1,731         38,800      38,850       1,881         41,800      41,850       2,031         44,800      44,850       2,181
 32,850      32,900         1,584       35,850      35,900       1,734         38,850      38,900       1,884         41,850      41,900       2,034         44,850      44,900       2,184
 32,900      32,950         1,586       35,900      35,950       1,736         38,900      38,950       1,886         41,900      41,950       2,036         44,900      44,950       2,186
 32,950      33,000         1,589       35,950      36,000       1,739         38,950      39,000       1,889         41,950      42,000       2,039         44,950      45,000       2,189

20                                                                                                                                                           Continued on Next Page
                                       1997 MARYLAND TAX TABLE
                                                                                   Continued:



   If your income                         If your income                         If your income                         If your income                         If your income
from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
    At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
  least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
              than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
      45,000                                 48,000                                 51,000                                 54,000                                 57,000
45,000      45,050         2,191       48,000      48,050       2,341         51,000      51,050       2,491         54,000      54,050       2,641         57,000      57,050       2,791
45,050      45,100         2,194       48,050      48,100       2,344         51,050      51,100       2,494         54,050      54,100       2,644         57,050      57,100       2,794
45,100      45,150         2,196       48,100      48,150       2,346         51,100      51,150       2,496         54,100      54,150       2,646         57,100      57,150       2,796
45,150      45,200         2,199       48,150      48,200       2,349         51,150      51,200       2,499         54,150      54,200       2,649         57,150      57,200       2,799
45,200      45,250         2,201       48,200      48,250       2,351         51,200      51,250       2,501         54,200      54,250       2,651         57,200      57,250       2,801
45,250      45,300         2,204       48,250      48,300       2,354         51,250      51,300       2,504         54,250      54,300       2,654         57,250      57,300       2,804
45,300      45,350         2,206       48,300      48,350       2,356         51,300      51,350       2,506         54,300      54,350       2,656         57,300      57,350       2,806
45,350      45,400         2,209       48,350      48,400       2,359         51,350      51,400       2,509         54,350      54,400       2,659         57,350      57,400       2,809
45,400      45,450         2,211       48,400      48,450       2,361         51,400      51,450       2,511         54,400      54,450       2,661         57,400      57,450       2,811
45,450      45,500         2,214       48,450      48,500       2,364         51,450      51,500       2,514         54,450      54,500       2,664         57,450      57,500       2,814
45,500      45,550         2,216       48,500      48,550       2,366         51,500      51,550       2,516         54,500      54,550       2,666         57,500      57,550       2,816
45,550      45,600         2,219       48,550      48,600       2,369         51,550      51,600       2,519         54,550      54,600       2,669         57,550      57,600       2,819
45,600      45,650         2,221       48,600      48,650       2,371         51,600      51,650       2,521         54,600      54,650       2,671         57,600      57,650       2,821
45,650      45,700         2,224       48,650      48,700       2,374         51,650      51,700       2,524         54,650      54,700       2,674         57,650      57,700       2,824
45,700      45,750         2,226       48,700      48,750       2,376         51,700      51,750       2,526         54,700      54,750       2,676         57,700      57,750       2,826
45,750      45,800         2,229       48,750      48,800       2,379         51,750      51,800       2,529         54,750      54,800       2,679         57,750      57,800       2,829
45,800      45,850         2,231       48,800      48,850       2,381         51,800      51,850       2,531         54,800      54,850       2,681         57,800      57,850       2,831
45,850      45,900         2,234       48,850      48,900       2,384         51,850      51,900       2,534         54,850      54,900       2,684         57,850      57,900       2,834
45,900      45,950         2,236       48,900      48,950       2,386         51,900      51,950       2,536         54,900      54,950       2,686         57,900      57,950       2,836
45,950      46,000         2,239       48,950      49,000       2,389         51,950      52,000       2,539         54,950      55,000       2,689         57,950      58,000       2,839

      46,000                                 49,000                                 52,000                                 55,000                                 58,000
46,000      46,050         2,241       49,000      49,050       2,391         52,000      52,050       2,541         55,000      55,050       2,691         58,000      58,050       2,841
46,050      46,100         2,244       49,050      49,100       2,394         52,050      52,100       2,544         55,050      55,100       2,694         58,050      58,100       2,844
46,100      46,150         2,246       49,100      49,150       2,396         52,100      52,150       2,546         55,100      55,150       2,696         58,100      58,150       2,846
46,150      46,200         2,249       49,150      49,200       2,399         52,150      52,200       2,549         55,150      55,200       2,699         58,150      58,200       2,849
46,200      46,250         2,251       49,200      49,250       2,401         52,200      52,250       2,551         55,200      55,250       2,701         58,200      58,250       2,851
46,250      46,300         2,254       49,250      49,300       2,404         52,250      52,300       2,554         55,250      55,300       2,704         58,250      58,300       2,854
46,300      46,350         2,256       49,300      49,350       2,406         52,300      52,350       2,556         55,300      55,350       2,706         58,300      58,350       2,856
46,350      46,400         2,259       49,350      49,400       2,409         52,350      52,400       2,559         55,350      55,400       2,709         58,350      58,400       2,859
46,400      46,450         2,261       49,400      49,450       2,411         52,400      52,450       2,561         55,400      55,450       2,711         58,400      58,450       2,861
46,450      46,500         2,264       49,450      49,500       2,414         52,450      52,500       2,564         55,450      55,500       2,714         58,450      58,500       2,864
46,500      46,550         2,266       49,500      49,550       2,416         52,500      52,550       2,566         55,500      55,550       2,716         58,500      58,550       2,866
46,550      46,600         2,269       49,550      49,600       2,419         52,550      52,600       2,569         55,550      55,600       2,719         58,550      58,600       2,869
46,600      46,650         2,271       49,600      49,650       2,421         52,600      52,650       2,571         55,600      55,650       2,721         58,600      58,650       2,871
46,650      46,700         2,274       49,650      49,700       2,424         52,650      52,700       2,574         55,650      55,700       2,724         58,650      58,700       2,874
46,700      46,750         2,276       49,700      49,750       2,426         52,700      52,750       2,576         55,700      55,750       2,726         58,700      58,750       2,876
46,750      46,800         2,279       49,750      49,800       2,429         52,750      52,800       2,579         55,750      55,800       2,729         58,750      58,800       2,879
46,800      46,850         2,281       49,800      49,850       2,431         52,800      52,850       2,581         55,800      55,850       2,731         58,800      58,850       2,881
46,850      46,900         2,284       49,850      49,900       2,434         52,850      52,900       2,584         55,850      55,900       2,734         58,850      58,900       2,884
46,900      46,950         2,286       49,900      49,950       2,436         52,900      52,950       2,586         55,900      55,950       2,736         58,900      58,950       2,886
46,950      47,000         2,289       49,950      50,000       2,439         52,950      53,000       2,589         55,950      56,000       2,739         58,950      59,000       2,889

      47,000                                 50,000                                 53,000                                 56,000                                 59,000
47,000      47,050         2,291       50,000      50,050       2,441         53,000      53,050       2,591         56,000      56,050       2,741         59,000      59,050       2,891
47,050      47,100         2,294       50,050      50,100       2,444         53,050      53,100       2,594         56,050      56,100       2,744         59,050      59,100       2,894
47,100      47,150         2,296       50,100      50,150       2,446         53,100      53,150       2,596         56,100      56,150       2,746         59,100      59,150       2,896
47,150      47,200         2,299       50,150      50,200       2,449         53,150      53,200       2,599         56,150      56,200       2,749         59,150      59,200       2,899
47,200      47,250         2,301       50,200      50,250       2,451         53,200      53,250       2,601         56,200      56,250       2,751         59,200      59,250       2,901
47,250      47,300         2,304       50,250      50,300       2,454         53,250      53,300       2,604         56,250      56,300       2,754         59,250      59,300       2,904
47,300      47,350         2,306       50,300      50,350       2,456         53,300      53,350       2,606         56,300      56,350       2,756         59,300      59,350       2,906
47,350      47,400         2,309       50,350      50,400       2,459         53,350      53,400       2,609         56,350      56,400       2,759         59,350      59,400       2,909
47,400      47,450         2,311       50,400      50,450       2,461         53,400      53,450       2,611         56,400      56,450       2,761         59,400      59,450       2,911
47,450      47,500         2,314       50,450      50,500       2,464         53,450      53,500       2,614         56,450      56,500       2,764         59,450      59,500       2,914
47,500      47,550         2,316       50,500      50,550       2,466         53,500      53,550       2,616         56,500      56,550       2,766         59,500      59,550       2,916
47,550      47,600         2,319       50,550      50,600       2,469         53,550      53,600       2,619         56,550      56,600       2,769         59,550      59,600       2,919
47,600      47,650         2,321       50,600      50,650       2,471         53,600      53,650       2,621         56,600      56,650       2,771         59,600      59,650       2,921
47,650      47,700         2,324       50,650      50,700       2,474         53,650      53,700       2,624         56,650      56,700       2,774         59,650      59,700       2,924
47,700      47,750         2,326       50,700      50,750       2,476         53,700      53,750       2,626         56,700      56,750       2,776         59,700      59,750       2,926
47,750      47,800         2,329       50,750      50,800       2,479         53,750      53,800       2,629         56,750      56,800       2,779         59,750      59,800       2,929
47,800      47,850         2,331       50,800      50,850       2,481         53,800      53,850       2,631         56,800      56,850       2,781         59,800      59,850       2,931
47,850      47,900         2,334       50,850      50,900       2,484         53,850      53,900       2,634         56,850      56,900       2,784         59,850      59,900       2,934
47,900      47,950         2,336       50,900      50,950       2,486         53,900      53,950       2,636         56,900      56,950       2,786         59,900      59,950       2,936
47,950      48,000         2,339       50,950      51,000       2,489         53,950      54,000       2,639         56,950      57,000       2,789         59,950      60,000       2,939

                                                                                                                                                   Continued on Next Page                   21
                                        1997 MARYLAND TAX TABLE
                                                                                    Continued:



    If your income                         If your income                         If your income                         If your income                         If your income
 from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
     At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
   least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
               than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
       60,000                                 63,000                                 66,000                                 69,000                                 72,000
 60,000      60,050         2,941       63,000      63,050       3,091         66,000      66,050       3,241         69,000      69,050       3,391         72,000      72,050       3,541
 60,050      60,100         2,944       63,050      63,100       3,094         66,050      66,100       3,244         69,050      69,100       3,394         72,050      72,100       3,544
 60,100      60,150         2,946       63,100      63,150       3,096         66,100      66,150       3,246         69,100      69,150       3,396         72,100      72,150       3,546
 60,150      60,200         2,949       63,150      63,200       3,099         66,150      66,200       3,249         69,150      69,200       3,399         72,150      72,200       3,549
 60,200      60,250         2,951       63,200      63,250       3,101         66,200      66,250       3,251         69,200      69,250       3,401         72,200      72,250       3,551
 60,250      60,300         2,954       63,250      63,300       3,104         66,250      66,300       3,254         69,250      69,300       3,404         72,250      72,300       3,554
 60,300      60,350         2,956       63,300      63,350       3,106         66,300      66,350       3,256         69,300      69,350       3,406         72,300      72,350       3,556
 60,350      60,400         2,959       63,350      63,400       3,109         66,350      66,400       3,259         69,350      69,400       3,409         72,350      72,400       3,559
 60,400      60,450         2,961       63,400      63,450       3,111         66,400      66,450       3,261         69,400      69,450       3,411         72,400      72,450       3,561
 60,450      60,500         2,964       63,450      63,500       3,114         66,450      66,500       3,264         69,450      69,500       3,414         72,450      72,500       3,564
 60,500      60,550         2,966       63,500      63,550       3,116         66,500      66,550       3,266         69,500      69,550       3,416         72,500      72,550       3,566
 60,550      60,600         2,969       63,550      63,600       3,119         66,550      66,600       3,269         69,550      69,600       3,419         72,550      72,600       3,569
 60,600      60,650         2,971       63,600      63,650       3,121         66,600      66,650       3,271         69,600      69,650       3,421         72,600      72,650       3,571
 60,650      60,700         2,974       63,650      63,700       3,124         66,650      66,700       3,274         69,650      69,700       3,424         72,650      72,700       3,574
 60,700      60,750         2,976       63,700      63,750       3,126         66,700      66,750       3,276         69,700      69,750       3,426         72,700      72,750       3,576
 60,750      60,800         2,979       63,750      63,800       3,129         66,750      66,800       3,279         69,750      69,800       3,429         72,750      72,800       3,579
 60,800      60,850         2,981       63,800      63,850       3,131         66,800      66,850       3,281         69,800      69,850       3,431         72,800      72,850       3,581
 60,850      60,900         2,984       63,850      63,900       3,134         66,850      66,900       3,284         69,850      69,900       3,434         72,850      72,900       3,584
 60,900      60,950         2,986       63,900      63,950       3,136         66,900      66,950       3,286         69,900      69,950       3,436         72,900      72,950       3,586
 60,950      61,000         2,989       63,950      64,000       3,139         66,950      67,000       3,289         69,950      70,000       3,439         72,950      73,000       3,589

       61,000                                 64,000                                 67,000                                 70,000                                 73,000
 61,000      61,050         2,991       64,000      64,050       3,141         67,000      67,050       3,291         70,000      70,050       3,441         73,000      73,050       3,591
 61,050      61,100         2,994       64,050      64,100       3,144         67,050      67,100       3,294         70,050      70,100       3,444         73,050      73,100       3,594
 61,100      61,150         2,996       64,100      64,150       3,146         67,100      67,150       3,296         70,100      70,150       3,446         73,100      73,150       3,596
 61,150      61,200         2,999       64,150      64,200       3,149         67,150      67,200       3,299         70,150      70,200       3,449         73,150      73,200       3,599
 61,200      61,250         3,001       64,200      64,250       3,151         67,200      67,250       3,301         70,200      70,250       3,451         73,200      73,250       3,601
 61,250      61,300         3,004       64,250      64,300       3,154         67,250      67,300       3,304         70,250      70,300       3,454         73,250      73,300       3,604
 61,300      61,350         3,006       64,300      64,350       3,156         67,300      67,350       3,306         70,300      70,350       3,456         73,300      73,350       3,606
 61,350      61,400         3,009       64,350      64,400       3,159         67,350      67,400       3,309         70,350      70,400       3,459         73,350      73,400       3,609
 61,400      61,450         3,011       64,400      64,450       3,161         67,400      67,450       3,311         70,400      70,450       3,461         73,400      73,450       3,611
 61,450      61,500         3,014       64,450      64,500       3,164         67,450      67,500       3,314         70,450      70,500       3,464         73,450      73,500       3,614
 61,500      61,550         3,016       64,500      64,550       3,166         67,500      67,550       3,316         70,500      70,550       3,466         73,500      73,550       3,616
 61,550      61,600         3,019       64,550      64,600       3,169         67,550      67,600       3,319         70,550      70,600       3,469         73,550      73,600       3,619
 61,600      61,650         3,021       64,600      64,650       3,171         67,600      67,650       3,321         70,600      70,650       3,471         73,600      73,650       3,621
 61,650      61,700         3,024       64,650      64,700       3,174         67.650      67,700       3,324         70,650      70,700       3,474         73,650      73,700       3,624
 61,700      61,750         3,026       64,700      64,750       3,176         67,700      67,750       3,326         70,700      70,750       3,476         73,700      73,750       3,626
 61,750      61,800         3,029       64,750      64,800       3,179         67,750      67,800       3,329         70,750      70,800       3,479         73,750      73,800       3,629
 61,800      61,850         3,031       64,800      64,850       3,181         67,800      67,850       3,331         70,800      70,850       3,481         73,800      73,850       3,631
 61,850      61,900         3,034       64,850      64,900       3,184         67,850      67,900       3,334         70,850      70,900       3,484         73,850      73,900       3,634
 61,900      61,950         3,036       64,900      64,950       3,186         67,900      67,950       3,336         70,900      70,950       3,486         73,900      73,950       3,636
 61,950      62,000         3,039       64,950      65,000       3,189         67,950      68,000       3,339         70,950      71,000       3,489         73,950      74,000       3,639

       62,000                                 65,000                                 68,000                                 71,000                                 74,000
 62,000      62,050         3,041       65,000      65,050       3,191         68,000      68,050       3,341         71,000      71,050       3,491         74,000      74,050       3,641
 62,050      62,100         3,044       65,050      65,100       3,194         68,050      68,100       3,344         71,050      71,100       3,494         74,050      74,100       3,644
 62,100      62,150         3,046       65,100      65,150       3,196         68,100      68,150       3,346         71,100      71,150       3,496         74,100      74,150       3,646
 62,150      62,200         3,049       65,150      65,200       3,199         68,150      68,200       3,349         71,150      71,200       3,499         74,150      74,200       3,649
 62,200      62,250         3,051       65,200      65,250       3,201         68,200      68,250       3,351         71,200      71,250       3,501         74,200      74,250       3,651
 62,250      62,300         3,054       65,250      65,300       3,204         68,250      68,300       3,354         71,250      71,300       3,504         74,250      74,300       3,654
 62,300      62,350         3,056       65,300      65,350       3,206         68,300      68,350       3,356         71,300      71,350       3,506         74,300      74,350       3,656
 62,350      62,400         3,059       65,350      65,400       3,209         68,350      68,400       3,359         71,350      71,400       3,509         74,350      74,400       3,659
 62,400      62,450         3,061       65,400      65,450       3,211         68,400      68,450       3,361         71,400      71,450       3,511         74,400      74,450       3,661
 62,450      62,500         3,064       65,450      65,500       3,214         68,450      68,500       3,364         71,450      71,500       3,514         74,450      74,500       3,664
 62,500      62,550         3,066       65,500      65,550       3,216         68,500      68,550       3,366         71,500      71,550       3,516         74,500      74,550       3,666
 62,550      62,600         3,069       65,550      65,600       3,219         68,550      68,600       3,369         71,550      71,600       3,519         74,550      74,600       3,669
 62,600      62,650         3,071       65,600      65,650       3,221         68,600      68,650       3,371         71,600      71,650       3,521         74,600      74,650       3,671
 62,650      62,700         3,074       65,650      65,700       3,224         68,650      68,700       3,374         71,650      71,700       3,524         74,650      74,700       3,674
 62,700      62,750         3,076       65,700      65,750       3,226         68,700      68,750       3,376         71,700      71,750       3,526         74,700      74,750       3,676
 62,750      62,800         3,079       65,750      65,800       3,229         68,750      68,800       3,379         71,750      71,800       3,529         74,750      74,800       3,679
 62,800      62,850         3,081       65,800      65,850       3,231         68,800      68,850       3,381         71,800      71,850       3,531         74,800      74,850       3,681
 62,850      62,900         3,084       65,850      65,900       3,234         68,850      68,900       3,384         71,850      71,900       3,534         74,850      74,900       3,684
 62,900      62,950         3,086       65,900      65,950       3,236         68,900      68,950       3,386         71,900      71,950       3,536         74,900      74,950       3,686
 62,950      63,000         3,089       65,950      66,000       3,239         68,950      69,000       3,389         71,950      72,000       3,539         74,950      75,000       3,689

22                                                                                                                                                           Continued on Next Page
                                       1997 MARYLAND TAX TABLE
                                                                                   Continued:



   If your income                         If your income                         If your income                         If your income                         If your income
from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .
    At          But       Your             At          But       Your             At          But       Your             At          But       Your             At          But       Your
  least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less     Maryland
              than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than      tax is . . .
      75,000                                 78,000                                 81,000                                 84,000                                 87,000
75,000      75,050         3,691       78,000      78,050       3,841         81,000      81,050       3,991         84,000      84,050       4,141         87,000      87,050       4,291
75,050      75,100         3,694       78,050      78,100       3,844         81,050      81,100       3,994         84,050      84,100       4,144         87,050      87,100       4,294
75,100      75,150         3,696       78,100      78,150       3,846         81,100      81,150       3,996         84,100      84,150       4,146         87,100      87,150       4,296
75,150      75,200         3,699       78,150      78,200       3,849         81,150      81,200       3,999         84,150      84,200       4,149         87,150      87,200       4,299
75,200      75,250         3,701       78,200      78,250       3,851         81,200      81,250       4,001         84,200      84,250       4,151         87,200      87,250       4,301
75,250      75,300         3,704       78,250      78,300       3,854         81,250      81,300       4,004         84,250      84,300       4,154         87,250      87,300       4,304
75,300      75,350         3,706       78,300      78,350       3,856         81,300      81,350       4,006         84,300      84,350       4,156         87,300      87,350       4,306
75,350      75,400         3,709       78,350      78,400       3,859         81,350      81,400       4,009         84,350      84,400       4,159         87,350      87,400       4,309
75,400      75,450         3,711       78,400      78,450       3,861         81,400      81,450       4,011         84,400      84,450       4,161         87,400      87,450       4,311
75,450      75,500         3,714       78,450      78,500       3,864         81,450      81,500       4,014         84,450      84,500       4,164         87,450      87,500       4,314
75,500      75,550         3,716       78,500      78,550       3,866         81,500      81,550       4,016         84,500      84,550       4,166         87,500      87,550       4,316
75,550      75,600         3,719       78,550      78,600       3,869         81,550      81,600       4,019         84,550      84,600       4,169         87,550      87,600       4,319
75,600      75,650         3,721       78,600      78,650       3,871         81,600      81,650       4,021         84,600      84,650       4,171         87,600      87,650       4,321
75,650      75,700         3,724       78,650      78,700       3,874         81,650      81,700       4,024         84,650      84,700       4,174         87,650      87,700       4,324
75,700      75,750         3,726       78,700      78,750       3,876         81,700      81,750       4,026         84,700      84,750       4,176         87,700      87,750       4,326
75,750      75,800         3,729       78,750      78,800       3,879         81,750      81,800       4,029         84,750      84,800       4,179         87,750      87,800       4,329
75,800      75,850         3,731       78,800      78,850       3,881         81,800      81,850       4,031         84,800      84,850       4,181         87,800      87,850       4,331
75,850      75,900         3,734       78,850      78,900       3,884         81,850      81,900       4,034         84,850      84,900       4,184         87,850      87,900       4,334
75,900      75,950         3,736       78,900      78,950       3,886         81,900      81,950       4,036         84,900      84,950       4,186         87,900      87,950       4,336
75,950      76,000         3,739       78,950      79,000       3,889         81,950      82,000       4,039         84,950      85,000       4,189         87,950      88,000       4,339

      76,000                                 79,000                                 82,000                                 85,000                                 88,000
76,000      76,050         3,741       79,000      79,050       3,891         82,000      82,050       4,041         85,000      85,050       4,191         88,000      88,050       4,341
76,050      76,100         3,744       79,050      79,100       3,894         82,050      82,100       4,044         85,050      85,100       4,194         88,050      88,100       4,344
76,100      76,150         3,746       79,100      79,150       3,896         82,100      82,150       4,046         85,100      85,150       4,196         88,100      88,150       4,346
76,150      76,200         3,749       79,150      79,200       3,899         82,150      82,200       4,049         85,150      85,200       4,199         88,150      88,200       4,349
76,200      76,250         3,751       79,200      79,250       3,901         82,200      82,250       4,051         85,200      85,250       4,201         88,200      88,250       4,351
76,250      76,300         3,754       79,250      79,300       3,904         82,250      82,300       4,054         85,250      85,300       4,204         88,250      88,300       4,354
76,300      76,350         3,756       79,300      79,350       3,906         82,300      82,350       4,056         85,300      85,350       4,206         88,300      88,350       4,356
76,350      76,400         3,759       79,350      79,400       3,909         82,350      82,400       4,059         85,350      85,400       4,209         88,350      88,400       4,359
76,400      76,450         3,761       79,400      79,450       3,911         82,400      82,450       4,061         85,400      85,450       4,211         88,400      88,450       4,361
76,450      76,500         3,764       79,450      79,500       3,914         82,450      82,500       4,064         85,450      85,500       4,214         88,450      88,500       4,364
76,500      76,550         3,766       79,500      79,550       3,916         82,500      82,550       4,066         85,500      85,550       4,216         88,500      88,550       4,366
76,550      76,600         3,769       79,550      79,600       3,919         82,550      82,600       4,069         85,550      85,600       4,219         88,550      88,600       4,369
76,600      76,650         3,771       79,600      79,650       3,921         82,600      82,650       4,071         85,600      85,650       4,221         88,600      88,650       4,371
76,650      76,700         3,774       79,650      79,700       3,924         82,650      82,700       4,074         85,650      85,700       4,224         88,650      88,700       4,374
76,700      76,750         3,776       79,700      79,750       3,926         82,700      82,750       4,076         85,700      85,750       4,226         88,700      88,750       4,376
76,750      76,800         3,779       79,750      79,800       3,929         82,750      82,800       4,079         85,750      85,800       4,229         88,750      88,800       4,379
76,800      76,850         3,781       79,800      79,850       3,931         82,800      82,850       4,081         85,800      85,850       4,231         88,800      88,850       4,381
76,850      76,900         3,784       79,850      79,900       3,934         82,850      82,900       4,084         85,850      85,900       4,234         88,850      88,900       4,384
76,900      76,950         3,786       79,900      79,950       3,936         82,900      82,950       4,086         85,900      85,950       4,236         88,900      88,950       4,386
76,950      77,000         3,789       79,950      80,000       3,939         82,950      83,000       4,089         85,950      86,000       4,239         88,950      89,000       4,389

      77,000                                 80,000                                 83,000                                 86,000                                 89,000
77,000      77,050         3,791       80,000      80,050       3,941         83,000      83,050       4,091         86,000      86,050       4,241         89,000      89,050       4,391
77,050      77,100         3,794       80,050      80,100       3,944         83,050      83,100       4,094         86,050      86,100       4,244         89,050      89,100       4,394
77,100      77,150         3,796       80,100      80,150       3,946         83,100      83,150       4,096         86,100      86,150       4,246         89,100      89,150       4,396
77,150      77,200         3,799       80,150      80,200       3,949         83,150      83,200       4,099         86,150      86,200       4,249         89,150      89,200       4,399
77,200      77,250         3,801       80,200      80,250       3,951         83,200      83,250       4,101         86,200      86,250       4,251         89,200      89,250       4,401
77,250      77,300         3,804       80,250      80,300       3,954         83,250      83,300       4,104         86,250      86,300       4,254         89,250      89,300       4,404
77,300      77,350         3,806       80,300      80,350       3,956         83,300      83,350       4,106         86,300      86,350       4,256         89,300      89,350       4,406
77,350      77,400         3,809       80,350      80,400       3,959         83,350      83,400       4,109         86,350      86,400       4,259         89,350      89,400       4,409
77,400      77,450         3,811       80,400      80,450       3,961         83,400      83,450       4,111         86,400      86,450       4,261         89,400      89,450       4,411
77,450      77,500         3,814       80,450      80,500       3,964         83,450      83,500       4,114         86,450      86,500       4,264         89,450      89,500       4,414
77,500      77,550         3,816       80,500      80,550       3,966         83,500      83,550       4,116         86,500      86,550       4,266         89,500      89,550       4,416
77,550      77,600         3,819       80,550      80,600       3,969         83,550      83,600       4,119         86,550      86,600       4,269         89,550      89,600       4,419
77,600      77,650         3,821       80,600      80,650       3,971         83,600      83,650       4,121         86,600      86,650       4,271         89,600      89,650       4,421
77,650      77,700         3,824       80,650      80,700       3,974         83,650      83,700       4,124         86,650      86,700       4,274         89,650      89,700       4,424
77,700      77,750         3,826       80,700      80,750       3,976         83,700      83,750       4,126         86,700      86,750       4,276         89,700      89,750       4,426
77,750      77,800         3,829       80,750      80,800       3,979         83,750      83,800       4,129         86,750      86,800       4,279         89,750      89,800       4,429
77,800      77,850         3,831       80,800      80,850       3,981         83,800      83,850       4,131         86,800      86,850       4,281         89,800      89,850       4,431
77,850      77,900         3,834       80,850      80,900       3,984         83,850      83,900       4,134         86,850      86,900       4,284         89,850      89,900       4,434
77,900      77,950         3,836       80,900      80,950       3,986         83,900      83,950       4,136         86,900      86,950       4,286         89,900      89,950       4,436
77,950      78,000         3,839       80,950      81,000       3,989         83,950      84,000       4,139         86,950      87,000       4,289         89,950      90,000       4,439

                                                                                                                                                   Continued on Next Page                   23
                                        1997 MARYLAND TAX TABLE
                                                                                    Continued:



    If your income                         If your income                         If your income                         If your income                            If your income
 from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                  from line 59 is . . .                     from line 59 is . . .
     At          But       Your             At          But       Your             At          But       Your             At          But         Your              At          But       Your
   least        less     Maryland         least        less     Maryland         least        less     Maryland         least        less       Maryland          least        less     Maryland
               than      tax is . . .                 than      tax is . . .                 than      tax is . . .                 than        tax is . . .                  than      tax is . . .
       90,000                                 92,000                                 94,000                                 96,000                                     98,000
 90,000      90,050         4,441       92,000      92,050       4,541         94,000      94,050       4,641         96,000           96,050    4,741          98,000       98,050      4,841
 90,050      90,100         4,444       92,050      92,100       4,544         94,050      94,100       4,644         96,050           96,100    4,744          98,050       98,100      4,844
 90,100      90,150         4,446       92,100      92,150       4,546         94,100      94,150       4,646         96,100           96,150    4,746          98,100       98,150      4,846
 90,150      90,200         4,449       92,150      92,200       4,549         94,150      94,200       4,649         96,150           96,200    4,749          98,150       98,200      4,849
 90,200      90,250         4,451       92,200      92,250       4,551         94,200      94,250       4,651         96,200           96,250    4,751          98,200       98,250      4,851
 90,250      90,300         4,454       92,250      92,300       4,554         94,250      94,300       4,654         96,250           96,300    4,754          98,250       98,300      4,854
 90,300      90,350         4,456       92,300      92,350       4,556         94,300      94,350       4,656         96,300           96,350    4,756          98,300       98,350      4,856
 90,350      90,400         4,459       92,350      92,400       4,559         94,350      94,400       4,659         96,350           96,400    4,759          98,350       98,400      4,859
 90,400      90,450         4,461       92,400      92,450       4,561         94,400      94,450       4,661         96,400           96,450    4,761          98,400       98,450      4,861
 90,450      90,500         4,464       92,450      92,500       4,564         94,450      94,500       4,664         96,450           96,500    4,764          98,450       98,500      4,864
 90,500      90,550         4,466       92,500      92,550       4,566         94,500      94,550       4,666         96,500           96,550    4,766          98,500       98,550      4,866
 90,550      90,600         4,469       92,550      92,600       4,569         94,550      94,600       4,669         96,550           96,600    4,769          98,550       98,600      4,869
 90,600      90,650         4,471       92,600      92,650       4,571         94,600      94,650       4,671         96,600           96,650    4,771          98,600       98,650      4,871
 90,650      90,700         4,474       92,650      92,700       4,574         94,650      94,700       4,674         96,650           96,700    4,774          98,650       98,700      4,874
 90,700      90,750         4,476       92,700      92,750       4,576         94,700      94,750       4,676         96,700           96,750    4,776          98,700       98,750      4,876
 90,750      90,800         4,479       92,750      92,800       4,579         94,750      94,800       4,679         96,750           96,800    4,779          98,750       98,800      4,879
 90,800      90,850         4,481       92,800      92,850       4,581         94,800      94,850       4,681         96,800           96,850    4,781          98,800       98,850      4,881
 90,850      90,900         4,484       92,850      92,900       4,584         94,850      94,900       4,684         96,850           96,900    4,784          98,850       98,900      4,884
 90,900      90,950         4,486       92,900      92,950       4,586         94,900      94,950       4,686         96,900           96,950    4,786          98,900       98,950      4,886
 90,950      91,000         4,489       92,950      93,000       4,589         94,950      95,000       4,689         96,950           97,000    4,789          98,950       99,000      4,889

       91,000                                 93,000                                 95,000                                 97,000                                     99,000
 91,000      91,050         4,491       93,000      93,050       4,591         95,000      95,050       4,691         97,000           97,050    4,791          99,000       99,050      4,891
 91,050      91,100         4,494       93,050      93,100       4,594         95,050      95,100       4,694         97,050           97,100    4,794          99,050       99,100      4,894
 91,100      91,150         4,496       93,100      93,150       4,596         95,100      95,150       4,696         97,100           97,150    4,796          99,100       99,150      4,896
 91,150      91,200         4,499       93,150      93,200       4,599         95,150      95,200       4,699         97,150           97,200    4,799          99,150       99,200      4,899
 91,200      91,250         4,501       93,200      93,250       4,601         95,200      95,250       4,701         97,200           97,250    4,801          99,200       99,250      4,901
 91,250      91,300         4,504       93,250      93,300       4,604         95,250      95,300       4,704         97,250           97,300    4,804          99,250       99,300      4,904
 91,300      91,350         4,506       93,300      93,350       4,606         95,300      95,350       4,706         97,300           97,350    4,806          99,300       99,350      4,906
 91,350      91,400         4,509       93,350      93,400       4,609         95,350      95,400       4,709         97,350           97,400    4,809          99,350       99,400      4,909
 91,400      91,450         4,511       93,400      93,450       4,611         95,400      95,450       4,711         97,400           97,450    4,811          99,400       99,450      4,911
 91,450      91,500         4,514       93,450      93,500       4,614         95,450      95,500       4,714         97,450           97,500    4,814          99,450       99,500      4,914
 91,500      91,550         4,516       93,500      93,550       4,616         95,500      95,550       4,716         97,500           97,550    4,816          99,500       99,550      4,916
 91,550      91,600         4,519       93,550      93,600       4,619         95,550      95,600       4,719         97,550           97,600    4,819          99,550       99,600      4,919
 91,600      91,650         4,521       93,600      93,650       4,621         95,600      95,650       4,721         97,600           97,650    4,821          99,600       99,650      4,921
 91,650      91,700         4,524       93,650      93,700       4,624         95,650      95,700       4,724         97,650           97,700    4,824          99,650       99,700      4,924
 91,700      91,750         4,526       93,700      93,750       4,626         95,700      95,750       4,726         97,700           97,750    4,826          99,700       99,750      4,926
 91,750      91,800         4,529       93,750      93,800       4,629         95,750      95,800       4,729         97,750           97,800    4,829          99,750  99,800           4,929
 91,800      91,850         4,531       93,800      93,850       4,631         95,800      95,850       4,731         97,800           97,850    4,831          99,800  99,850           4,931
 91,850      91,900         4,534       93,850      93,900       4,634         95,850      95,900       4,734         97,850           97,900    4,834          99,850  99,900           4,934
 91,900      91,950         4,536       93,900      93,950       4,636         95,900      95,950       4,736         97,900           97,950    4,836          99,900  99,950           4,936
 91,950      92,000         4,539       93,950      94,000       4,639         95,950      96,000       4,739         97,950           98,000    4,839          99,950 100,000           4,939


                         Use this Maryland tax computation worksheet
                                if line 59 is more than $100,000.
                   1. Complete the worksheet step by step.
                   2. Enter the amount from line 59 of Form 502, 503 or 505 on line 1 of the worksheet.

                              1.   Enter the amount from line 59 of Form 502, 503, or 505                                      .   .   . $
                              2.   Subtract this amount . . . . . . . . . . . . . . . . . . . . . . . . .                      .   .   .            -3000 00
                              3.   The difference is . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   .   .   .
                              4.   Multiply amount on line 3 by 5% . . . . . . . . . . . . . . . . .                           .   .   .                       x .05
                              5.   Carry the answer to two decimal places . . . . . . . . . . . .                              .   .   .
                                                                                                                                                      + 90 00

                                                                                                                        
                              6.   Add this amount to the amount on line 5 . . . . . . . . . . .                               .   .   .
                              7.   This is your MARYLAND TAX . . . . . . . . . . . . . . . .                                             $

                   3. Write the amount of MARYLAND TAX computed above on line 60 of Form 502, 503 or 505.

24
                                             TAX CREDITS FOR INCOME TAXES                                                                                                               1997
                    FORM


         502 CR
                                                 PAID TO OTHER STATES
                                                                 ATTACH TO YOUR TAX RETURN
                                          IF YOU WERE A PART-YEAR RESIDENT, DO NOT USE THIS FORM TO CLAIM A
                                        CREDIT FOR NONRESIDENT INCOME YOU SUBTRACTED ON LINE 29 OF FORM 502.
                                                      READ INSTRUCTIONS BEFORE COMPLETING THIS FORM.


  Your first name and initial                                         Last name                                                                                Social security number



  Spouse’s first name and initial                                     Last name                                                                                Social security number




   1. Taxable net income (line 59, Form 502) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

   2. Taxable net income in other state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

   3. Revised taxable net income (line 1 less line 2) (if less than zero, write zero) . . . . . . . . . . . . . . . . . . . . . . . .

   4. Maryland tax (line 62a, Form 502) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

   5. Tax on amount on line 3 (from Maryland Tax Table or Computation Worksheet) . . . . . . . . . . . . . . . . . . . . . . . . .

   6. Tentative tax credit (line 4 less line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

   7. State tax shown on the tax return filed with the state of __________________ .
      (Do not enter state tax withheld from your W-2 forms.) (Attach copy of return) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


   8. Credit for income tax paid to other state (Write the smaller of line 6 or 7
      here and on line 67, Form 502) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                    GENERAL INSTRUCTIONS                                                                         SPECIFIC INSTRUCTIONS
If you are a Maryland resident and you paid income tax to another                                   Line 1 — Enter your taxable net income as determined on line 59,
state, you may be eligible for a credit on your Maryland return.                                    Form 502. This amount includes all income received by you.
Find the state to which you paid a nonresident tax in the groups listed                             Line 2 — Write on this line only the net income which is taxable in
on the back. The instructions for that group will tell you if you are eli-                          both the other state and Maryland. If you are taxed in the other state
gible for credit and if you should complete Form 502CR.                                             on income which is not taxable in Maryland, do not include that
                                                                                                    amount on line 2.
If you are eligible for a credit you must file your Maryland income tax
return on Form 502 and you should first complete lines 1 through 62a                                NOTE: When the tax in the other state is a percentage of a tax based
of that form before preparing Form 502CR.                                                           on your total income regardless of source, you must apply the same
                                                                                                    percentage to your taxable income in the other state to determine the
Form 502CR must be completed and attached to Form 502. A com-
                                                                                                    income taxable in both states.
pleted, signed copy of the income tax return filed in the other state
must also be attached to Form 502.                                                                  Line 4 — Enter the Maryland tax as determined on line 62a, Form
                                                                                                    502. This is the Maryland tax based on your total income for the year.
CAUTION: Do not use the income or withholding tax reported on the
wage and tax statement issued by your employer for the credit com-                                  Line 5 — Compute the Maryland tax that would be due on the revised
putation. Use the taxable income and the income tax calculated on the                               taxable net income (line 3) by using the Maryland Tax Table or Compu-
return you filed with the other state.                                                              tation Worksheet contained in the instructions for Form 502. Do not
                                                                                                    include the local income tax.
If you are claiming credit for taxes paid to more than one state, a sep-
arate Form 502CR must be completed for each state. Credit cannot be                                 Line 7 — Enter the total amount of your 1997 income tax liability to a
allowed against the local portion of the tax calculated on the return of                            state other than Maryland. In the space provided, enter the name of
the other state or on the Maryland return (line 62b of Form 502).                                   the state. It is important that a copy of the tax return that was filed
                                                                                                    with the other state be attached to your Maryland return.
                                                                                                    Line 8 — Your credit for taxes paid to another state is the smaller of
                                                                                                    the tax actually paid (line 7) or the reduction in Maryland tax resulting
                                                                                                    from the exclusion of income in the other state (line 6).




COT/RAD-012
INSTRUCTIONS
FOR                                     TAX CREDITS FOR INCOME TAXES                                                                       PAGE 2

FORM 502CR
1997
                                            PAID TO OTHER STATES
GROUP A — Nonreciprocal – Credit is taken on the Maryland resident                               SPECIAL INSTRUCTIONS
return.
        Alabama                       New Jersey                           Composite Returns — When a partnership, S Corporation or limited
        Arizona                       New Mexico                           liability company (LLC) files a composite return on behalf of its part-
        Arkansas                      New York                             ners or shareholders with states in Groups A and B, Maryland resident
        California                    North Carolina                       partners or shareholders may claim a credit for their share of the tax
        Colorado                      North Dakota                         paid. No credit is available for taxes paid to states in Group C, or for
        Connecticut                   Ohio                                 taxes paid to cities or local jurisdictions. If the Maryland resident must
        Delaware                      Oklahoma                             file an individual nonresident return reporting the partnership, S Corpo-
        Georgia                       Oregon                               ration or LLC income, a separate Form 502CR must be completed for
        Hawaii                        Pennsylvania                         each state and submitted with a copy of the return filed with the other
        Idaho                          (except wage income)                state.
        Illinois                      Rhode Island
        Indiana                       South Carolina                       Shareholders of S Corporations — Maryland resident shareholders
        Iowa                          Tennessee                            can claim a credit for taxes paid by an S Corporation to a state which
        Kansas                        Utah                                 does not recognize federal S Corporation treatment. A copy of the cor-
        Kentucky                      Vermont                              poration return filed in the other state is required to be attached to the
        Louisiana                     Virginia                             Maryland return. A separate Form 502CR should be completed for
        Maine                          (except wage income)
                                                                           each state showing the following information:
        Massachusetts                 Washington, D.C.
        Michigan                       (except wage income)
        Minnesota                     West Virginia
        Mississippi                    (except wage income)
        Missouri                      Wisconsin
        Montana                       Territories and                      ________________%        x________________        =________________
        Nebraska                      Possessions of the                   Stock Ownership          Corporation Taxable      Line 2, Form 502CR
        New Hampshire                 United States                        Percentage               Income
Group A — A Maryland resident having income from one of these
states must report the income on the Maryland resident return Form
502. To claim a credit for taxes paid to the other state, complete         ________________%        x________________        =________________
Form 502CR and attach it and a copy of the other state’s nonresident       Stock Ownership          Corporation Tax          Line 7, Form 502CR
income tax return (not just your W-2 Form) to your Maryland return.        Percentage
GROUP B — Reciprocal for wages, salaries, tips and commission              NOTE: A preliminary calculation using Form 502 must be made before
income only.                                                               calculating the credit on Form 502CR. Complete lines 51 through
         Pennsylvania                     Washington, D.C.                 62a on Form 502 to determine the amounts to be used for the 502CR
         Virginia                         West Virginia                    computation.
                                                                           The credit amount shown on line 8 of Form 502CR must then be
Group B — Maryland has a reciprocal agreement with the states              included as an addition to income on line 21 of the Form 502 you
included in Group B. The agreement applies only to wages, salaries, tips   will file.
and commissions. It does not apply to business income, farm income,
rental income, etc. If you had earned income other than wages,             D.C. Unincorporated Business Franchise Tax — Self-employed indi-
salaries, tips and commissions in these states, complete Form              viduals and partners in a partnership that are subject to the D.C. unin-
502CR and attach it and a copy of the other state’s nonresident            corporated business franchise tax may claim a credit on Form 502CR.
income tax return to your Maryland return.                                 A copy of the D.C. return is required for self-employed individuals and
If you had wages, plus income other than wages, you should contact         for partners a K-1 or other statement from the partnership showing the
the taxing authorities in the other state to determine the proper          partner's share of income and the partner’s share of the D.C. tax.
method for filing the nonresident return.
                                                                           Sale of Residence in Another State — If you sell or exchange a
GROUP C — No State income tax – No credit allowed.                         residence located in another state in the current taxable year you
      Alaska                      Texas                                    may be entitled to a credit if:
      Florida                     Washington                               1. You included the gain in your federal adjusted gross income;
      Nevada                      Wyoming
      South Dakota                                                         2. You deferred recognition of gain for federal purposes on a previous
                                                                               principal residence in a prior taxable year; and
Group C — You must report income from these states on your Mary-           3. Paid tax on the gain to the state where the previous principal
land resident return. You cannot claim any credit for income earned in         residence was located.
these states because you did not pay any income tax to the other state.
                                                                           If you satisfy all of these conditions do not complete Form 502CR.
IMPORTANT NOTE FOR DUAL RESIDENTS                                          Contact any office of the Revenue Administration Division to receive
A person may be a resident of more than one state at the same time         additional information for claiming this credit.
for income tax purposes. If you must file a resident return with both
Maryland and another state, use the following rules to determine           Installment Sales in Another State — You may be eligible for credit
where the credit should be taken:                                          for taxes paid to another state for gain recognized on installment sales
                                                                           proceeds, even if the other state required the total gain be recognized
1. A person who is domiciled in Maryland and who is subject to tax         in an earlier tax year. Contact any office of the Revenue Administration
   as a resident of any of the states listed in Group A or B can claim     Division to receive additional information for claiming this credit.
   a credit on the Maryland return (Form 502) using Form 502CR.
2. A person domiciled in any state listed in Group A or B who must
   file a resident return with Maryland must take the credit in the
   state of domicile.
                         FORM
                                                          DECLARATION OF ESTIMATED                                                                                                   1998
                 502 D                                  MARYLAND AND LOCAL INCOME TAX
 COMPTROLLER OF THE TREASURY
REVENUE ADMINISTRATION DIVISION
    ANNAPOLIS, MD 21411-0001
                                                    IMPORTANT: Substantial changes have been made to the method of computing your
                                                   estimated tax. Please review the instructions on reverse side before completing this form.
                TAXPAYERS WHO FILED A 1997 DECLARATION OF ESTIMATED TAX WILL BE SENT A 1998 DECLARATION PACKET
                          CONSISTING OF A WORKSHEET AND FOUR VOUCHERS FOR SUBMITTING QUARTERLY INSTALLMENTS.
                            IF YOU RECEIVE THE DECLARATION PACKET, PLEASE USE THE VOUCHERS INSTEAD OF THIS FORM.
                                                                           ESTIMATED TAX WORKSHEET
 1.   Total income expected in 1998 (federal adjusted gross income) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                .....         1
 2.   Net modifications (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               . . . .       2
 3.   Maryland adjusted gross income (line 1 above, plus or minus line 2) . . . . . . . . . . . . . . . . . . . . . . .                              . . . .       3
 4.   Deductions:
      a. If standard deduction is used, see instructions on reverse side for amount to enter.
      b. If deductions are itemized, enter total of federal itemized deductions less state and local income taxes.                                    ..... 4
 5.   Maryland net income (Subtract line 4 from line 3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              . . . . 5
 6.   Personal exemptions (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 . . . . 6
 7.   Taxable net income (Subtract line 6 from line 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             . . . . 7
 8.   Maryland income tax before reductions (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . .                                 . . . . 8
 9.   Local income tax: ______% of line 8 (See instructions)                . . . . . . . . . . . . . . . . . . . . . . . . . . .                    . . . . 9
10.   Subtotal of Maryland and local income tax (Add line 8 and line 9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                  . . . . . 10
11.   1998 TAX REDUCTION
      a. Tax rate adjustment (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a
      b. Exemption adjustment (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11b
      c. Total (Add lines 11a and 11b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   . . . . . 11c
12.   Total 1998 Maryland and local income tax (Subtract line 11c from line 10) . . . . . . . . . . . . . . . . . . . . .                            . . . . 12
13.   CREDITS
      a. Maryland income tax to be withheld from wages by employers during the year 1998 13a
      b. Credit for tax paid to another state . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13b
      c. Business tax credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13c
      d. Total credits (Add lines 13a, 13b and 13c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      . . . . . 13d
14.   Total estimated tax to be paid by declaration (Subtract line 13d from line 12) . . . . . . . . . . . . . . . . . .                             . . . . 14
15.   Amount to be submitted with declaration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .              . . . . . 15

                                                               RECORD OF INSTALLMENT PAYMENTS
                          This is your record of the estimated tax paid, which is to be claimed as a credit on your 1998 Maryland income tax return.
                                                                                                                                                         AMOUNT
                          1997 OVERPAYMENT APPLIED AS A CREDIT TO ESTIMATED TAX
                          DATE DUE                DATE PAID          CHECK NO.
                          April 15, 1998
                          June 15, 1998
                          September 15, 1998
                          January 15, 1999
                          TOTAL OF PAYMENTS ABOVE SHOULD BE SHOWN ON LINE 66 OF FORM 502, 503 OR 505 FOR 1998

                  CUT ALONG THIS LINE AND FILE WITH COMPTROLLER OF THE TREASURY, REVENUE ADMINISTRATION DIVISION, ANNAPOLIS, MARYLAND 21411-0001



              1998                              DECLARATION OF ESTIMATED                                                                                          CHECK HERE IF THIS IS
                                                                                                                                                                  A CHANGE OF ADDRESS

       FORM    502 D                          MARYLAND AND LOCAL INCOME TAX                                                                                        CHECK HERE IF THIS IS
                                                                                                                                                                   A JOINT DECLARATION
 COMPTROLLER OF THE TREASURY
REVENUE ADMINISTRATION DIVISION                     FOR THE YEAR 1998                                                                         CHECK HERE IF YOU NEED VOUCHERS
    ANNAPOLIS, MD 21411-0001                                                                                                                          FOR REMAINING PAYMENTS
                                                  (OR FISCAL YEAR BEGINNING                      , 1998 and ENDING             , 1999)
  Your first name and initial                                          Last name                                                                      Social security number



  Spouse’s first name and initial                                      Last name                                                                      Social security number



  Present address (no. and street)                                                                       City or town                                 State                    Zip code




TOTAL STATE AND LOCAL TAX PAID WITH THIS DECLARATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $

COT/RAD-013
INSTRUCTIONS
FOR                                  DECLARATION OF ESTIMATED MARYLAND                                                                                                           PAGE 2

FORM 502D
1998
                                        INCOME TAX FOR THE YEAR 1998
Purpose of declaration The filing of a declaration of estimated Maryland income           Line 8. Maryland income tax before reductions. Compute your tax on the
tax is a part of the pay-as-you-go plan of income tax collection adopted by the         amount on line 7 using the following tax rate schedule:
State. If you have any income such as pensions, business income, lottery, capi-                                     Tax rate schedule
tal gains, interest, dividends, etc., from which no tax is withheld, or wages from                 If the amount on line 7 is:                     Amount of tax
which not enough Maryland tax is withheld, you may have to pay estimated taxes.                      At least  but not over                       (Enter on line 8)
The law is somewhat similar to the federal law.                                                     $    0    - $1,000           2% of the amount on line 7
                                                                                                     1,000    - 2,000            $20 plus 3% of the excess over $1,000
Who must file a declaration You must file a declaration of estimated tax if you are
                                                                                                     2,000    - 3,000            $50 plus 4% of the excess over $2,000
required to file a Maryland income tax return and your gross income would be ex-
                                                                                                     3,000    -   over           $90 plus 5% of the excess over $3,000
pected to develop a tax of more than $250 in excess of your Maryland withholding.
   You must file a declaration with payment in full within 60 days of receiving            Line 9. Local income tax. Maryland counties and Baltimore City levy an
$500 or more of income from awards, prizes, lotteries or raffles, whether paid in       income tax which is up to 60% of the amount of state income tax calculated using
cash or property if Maryland tax has not been withheld.                                 pre-1998 tax rates and exemption amounts. The amount you entered on line 8 is
                                                                                        your pre-1998 state tax amount. Multiply that by your local tax rate (see below)
When to file a declaration You must pay at least one-fourth of the total esti-
                                                                                        and enter on line 9.
mated tax on line 12 of this form on or before April 15, 1998. The remaining quar-
terly payments are due June 15, 1998, September 15, 1998 and January 15,                       Allegany County           58%        Queen Anne’s County 55%
1999. You may pay the total estimated tax with your first payment, if you wish. If             Baltimore County          55%        Somerset County          60%
you are filing on a fiscal year basis, each payment is due on the 15th day after               Caroline County           60%        St. Mary’s County        58%
the close of each quarter.                                                                     Carroll County            55%        Talbot County            40%
                                                                                               Montgomery County         60%        Wicomico County          60%
Overpayment of tax If you overpaid your 1997 income tax (Form 502, 503 or                      Prince George’s County 60%           Worcester County         20%
505) you may apply all or part of the overpayment to your 1998 estimated tax. If               All other counties impose a 50% local income tax rate.
the overpayment applied equals or exceeds the estimated tax liability for the first
quarterly payment, you are not required to file the declaration. If the overpayment       Line 11. Use the worksheets below to calculate your tax reduction. (1997 Tax
applied is less than the estimated tax liability, you should file the declaration and   Reduction Act.)
pay the balance of the first installment. Preprinted vouchers will be mailed to you                       TAX RATE ADJUSTMENT WORKSHEET
for the remaining payments.
                                                                                                   If line 7 exceeds $3,000, complete the worksheet below.
Joint declaration A husband and wife may file a joint declaration.
                                                                                                   Enter the amount from line 7 of this form . . .
Farmers and fishermen If your estimated gross income from farming or fishing
is at least two-thirds of your total estimated gross income for the year, special                  Subtract this amount . . . . . . . . . . . . . . . . -             3,000.00
provisions may apply. Your 1998 declaration and full payment of the estimated tax                  If less than zero enter zero . . . . . . . . . . . .
are due on or before January 15, 1999. You do not have to file the declaration if
you file your complete tax return (Form 502, 503 or 505) and pay the full amount                   Multiply the difference by .0005 . . . . . . . . . x                 .0005
of tax due on or before March 1, 1999.
                                                                                                   This is your tax rate adjustment
Changes in income or exemptions Your situation may not require you to file a                       (Enter this amount on line 11a of this form) . . $
declaration on April 15, 1998. However, a large increase in income after that
date may require you to file a declaration. If at anytime during the year you need                           EXEMPTION ADJUSTMENT WORKSHEET
to amend your original declaration, simply increase or decrease the remaining
payments.                                                                                          Complete the worksheet below indicating the number of
                                                                                                   exemptions being claimed. (Do not include exemptions
How to estimate your 1998 tax If you complete the worksheet on page 1 of the                       for taxpayer or spouse over age 65 or blind.)
form correctly, it should develop your 1998 estimated tax. You may also use your
1997 income tax return as a guide.                                                                 Number of Exemptions: Yourself
   For the purpose of estimating, round all figures to the nearest whole dollar.                                          Spouse
                                                                                                                          Children
Specific Instructions:                                                                                                    Other
NOTE: In order to properly calculate your local income tax, you must first calcu-                                         Other 65 +
late your state income tax using pre-1998 exemption amounts and tax rates. This                    Total number of Exemptions
is accomplished in lines 1 through 10 of the Estimated Tax Worksheet. The
increase in your exemption amount and the decrease in the maximum tax rate                                                   x $9.90 =
                                                                                                      total number of                       enter this amount
appear in lines 11a and 11b.                                                                            exemptions                       on line 11b of this form
   Line 1. Total income expected in 1998 is your estimated federal adjusted
gross income.                                                                           Filing a return instead of fourth payment Instead of making the fourth decla-
                                                                                        ration payment on or before January 15, 1999, you may file your 1998 individual
   Line 2. Net modifications. You must add certain items to your federal adjusted       income tax return provided you file it on or before January 31, 1999 and pay in
gross income. See Instruction 12 of the tax packet. You may subtract certain            full with the return any balance of tax due.
items from federal adjusted gross income. See Instruction 13 of the tax packet.
Enter on this line the net result of additions and subtractions.                        Forms and information Declaration of estimated tax forms and any additional
                                                                                        information may be obtained from the Comptroller of the Treasury, Revenue Admin-
  Line 4. Deductions. You may compute your tax using the standard deduction
                                                                                        istration Division, Annapolis, Maryland 21411-0001, or from any of its branch offices.
method or the itemized deduction method.
Standard deduction. Compute 15% of line 3.                                              Payment instructions Make your check or money order payable to the “Comp-
For Filing Status 1, 4, 7: if the amount computed is less than $1,500, enter            troller of the Treasury.” Put your social security number on your check. Do not
$1,500; if the amount is between $1,500 and $2,000, enter that amount; if the           send cash.
amount is more than $2,000, enter $2,000.
                                                                                        Mailing instructions Mail your declaration of estimated tax to:
For Filing Status 2, 5, 6: if the amount computed is less than $3,000, enter                          Comptroller of the Treasury
$3,000; if the amount is between $3,000 and $4,000, enter that amount; if the                         Revenue Administration Division
amount is more than $4,000, enter $4,000.                                                             Remittance Processing Center
Itemized deductions. Enter the total of federal itemized deductions less state and                    Annapolis, Maryland 21411-0001
local income taxes.
                                                                                        Penalties and interest If you are required by law to file a declaration of esti-
  Line 6. Personal exemptions. You are allowed:                                         mated tax for any taxable year and you either (1) fail to file on the date pre-
          a. $1,200 each for taxpayer and spouse.                                       scribed, (2) fail to pay the installment or installments when due or (3) esti-
          b. $1,000 each for taxpayer and spouse if age 65 or over and/or blind.        mate a tax less than ninety (90) percent of the developed tax shown on the return
          c. $1,200 for each allowable dependent, other than taxpayer and               for the current taxable year and which estimate was less than the tax paid for the
             spouse. The amount is doubled for allowable dependents age 65              prior year, you shall be subject to the penalties and interest as provided by law
             or over.                                                                   for the failure to file a return and the failure to pay a tax when due.
                          FORM
                                                               APPLICATION FOR EXTENSION                                                                                                                     1997
                  502 E                                         OF TIME TO FILE MARYLAND
 COMPTROLLER OF THE TREASURY
REVENUE ADMINISTRATION DIVISION
    ANNAPOLIS, MD 21411-0001                                  PERSONAL INCOME TAX RETURN
IMPORTANT: The granting of an extension of time for filing your Maryland personal income tax return in no way changes the due
date as provided by statute. Interest from the due date of the return must be computed on any balance of tax due on the return, and
included in the remittance accompanying the late-filed return.

                                                                                           PLEASE PRINT OR TYPE

   Your first name and initial                                                 Last name                                                                                        Social security number



   Spouse’s first name and initial                                             Last name                                                                                        Social security number



   Present address (no. and street)                                                                                         City or town                              State                       Zip code




     I request an automatic extension of time to August 17, 1998 to file for calendar year 1997.
     I request an extension of time to October 15, 1998 to file for calendar year 1997.
     I am a fiscal year taxpayer and am requesting an extension of time to file to __________________, 19____ for tax year
     ending __________________, 19____. (The extension period may not exceed six months.)
Complete the following:

     Federal extension has been requested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                          Yes   No

     Reason extension is needed:




1. Total income tax liability for 1997. (You may estimate this amount) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
   NOTE: You must enter an amount on line 1. If you do not expect to owe tax, enter zero (0).


2. Maryland income tax withheld . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2


3. 1997 estimated tax payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3


4. Other payments and credits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5. Add lines 2, 3 and 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6. Income tax balance due (Subtract line 5 from line 1). Pay in full with this form. If line 5 is more than line 1,
   enter zero (0) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

         IF LINE 6 IS ZERO (0), AND YOU ARE REQUESTING AN AUTOMATIC EXTENSION TO AUGUST 17, 1998,
                                  FILE YOUR EXTENSION REQUEST BY TELEPHONE.
   CALL 410-974-5829 FROM CENTRAL MARYLAND OR 1-800-260-3664 FROM ELSEWHERE TO TELEFILE THIS FORM.
 YOU MAY ALSO FILE YOUR EXTENSION ON THE COMPTROLLER’S WEB SITE IF NO MONEY IS DUE: www.comp.state.md.us

                                                                                      Signature and Verification
Under penalties of perjury, I declare that I have examined this form, including accompanying schedules and statements and to the best of my knowledge and belief,
it is true, correct and complete; and, if prepared by someone other than the taxpayer, that I am authorized to prepare this form.


Signature of taxpayer                                                                                                      Date
                                                                                                                                                                    Make checks payable to and mail to:
                                                                                                                                                                    COMPTROLLER OF THE TREASURY
Signature of spouse                                                                                                        Date                                    REVENUE ADMINISTRATION DIVISION
          or                                                                                                                                                       ANNAPOLIS, MARYLAND 21411-0001
                                                                                                                                                                      (Write social security no. on check)
Signature of preparer                                                                                                      Date
other than taxpayer


COT/RAD-014
INSTRUCTIONS
FOR                      APPLICATION FOR EXTENSION OF TIME TO                                                                        PAGE 2

FORM 502E
1997
                     FILE MARYLAND PERSONAL INCOME TAX RETURN
                   GENERAL INSTRUCTIONS                                Filing Your Tax Return
                                                                       You may file Form 502, 503, 505 or 515 at any time before the
Purpose of Form                                                        end of the extension period. Remember, Form 502E does not
Use Form 502E to receive four more months to file Form 502,            extend the time to pay taxes. If you do not pay the amount due
503, 505 or 515. You do not have to explain why you are asking         by the regular due date, you will owe interest and be subject to
for the extension unless you are not requesting a federal exten-       a penalty.
sion. We will contact you only if your request is denied.
To get extra time you MUST:                                            Interest
1. Fill in Form 502E correctly AND                                     You will owe interest on tax not paid by the regular due date of
                                                                       your return. The interest will accrue until you pay the tax. Even if you
2. File it by the due date of your return AND                          had a good reason not to pay on time, you will still owe interest.
3. Pay ALL of the amount shown on line 6.
                                                                       Penalty
Do not file Form 502E if you want the Revenue Administration           If tax and interest is not paid promptly, a penalty of 25% will be
Division to figure your tax. Simply provide us with the necessary      assessed on the tax.
information and a written request for us to complete the return.
Also, if you have completed your return but are unable to pay          How to Claim Credit for Payment Made with This Form
your tax in full, do not file Form 502E. File your return.             When you file your return, show the amount of any payment (line 6)
Individuals who are requesting an extension of more than four          sent with Form 502E on line 66 of your return.
months must file Form 502E. You must enter on this application
the reason for the request. No extension request will be granted       If you and your spouse each filed a separate Form 502E, but
for more than six months, except in the case of individuals who        later filed a joint return, you may enter the total amount paid with
are out of the United States. In no case will an extension be          both 502E forms on line 66 of your joint return.
granted for more than one year from the due date for submitting
the individual tax return.                                             If you and your spouse jointly filed Form 502E but later file sep-
                                                                       arate returns, you may enter the total amount paid with Form
When to File Form 502E                                                 502E on either of your separate returns. Or, you and your
File Form 502E by April 15, 1998. If you are filing on a fiscal year   spouse may agree to divide the payment between you. Be sure
basis, file by the regular due date of your return.                    each return has the social security numbers of both spouses.

Where to File
If line 6 is zero (0), and you are requesting an automatic exten-                          SPECIFIC INSTRUCTIONS
sion to August 17, 1998, you may file your extension request
by telephone. Call 410-974-5829 from Central Maryland or               Your Signature
1-800-260-3664 from elsewhere to telefile this form. Please have       This form must be signed. If you plan to file a joint return, both of
the form in front of you when you call this number.                    you should sign. If there is a good reason why one of you cannot,
                                                                       then the other spouse may sign for both. Attach an explanation
NOTE: The telefile service is available 24 hours a day, 7 days a       why the other spouse cannot sign.
week, from January 1, 1998 through April 15, 1998. Calling before
April 10 and during non-peak hours will make it easier to file.        Others Who Can Sign For You
                                                                       Anyone with a power of attorney can sign. But the following can
You may also file your extension on the Comptroller’s web site if      sign for you without a power of attorney:
no money is due: www.comp.state.md.us
                                                                       • Attorneys, CPA’s and enrolled agents.
If line 6 is zero (0) and you are requesting an extension for a        • A person in close personal or business relationship to you who
period longer than four months, mail this form to the Revenue            is signing because you cannot. There must be a good reason
Administration Division, Annapolis, MD 21411-0001.                       why you cannot sign (such as illness or absence.) Attach an
                                                                         explanation to the form.
If you entered an amount on line 6, mail this form and your pay-
ment to the Revenue Administration Division, Annapolis, MD
21411-0001.
                                                        UNDERPAYMENT OF ESTIMATED                                                                                                         1997
                    FORM


          502 UP
                                                           MARYLAND INCOME TAX
                                                              BY INDIVIDUALS
             SEE EXPLANATION ON REVERSE. ATTACH THIS FORM TO FORM 502, 503, 504 OR 505.

                                       IMPORTANT: PLEASE REVIEW THE INSTRUCTIONS BEFORE COMPLETING THIS FORM.

                                                              FARMERS AND FISHERMEN SEE BACK OF FORM FOR COMPUTATION

                                                           IF YOUR INCOME IS TAXABLE BY ANOTHER STATE, SEE BACK OF FORM.
Your first name and initial                                                                Last name                                                        Social security number



Spouse’s first name and initial                                                            Last name                                                        Social security number



                                                                     EXCEPTIONS WHICH AVOID THE UNDERPAYMENT INTEREST

No Interest is Due And This Form Should Not Be Filed If:
 A. The tax liability on gross income after deducting Maryland withholding is $250 or less, or
 B. Each current year payment, made quarterly as required, is equal to or more than one-fourth of last year’s taxes.

                                                                     COMPUTATION OF UNDERPAYMENT – LINES 1 THROUGH 15
  1.Total Maryland income (from line 55 of Form 502, 503 or 505 or from line 57 of Form 504) . . . . . . . . . . . . . . . . . . .                             . . . . . . . $ ______________
  2.1997 Maryland and local tax (from line 62c of Form 502, 503 or 504 or from line 62 of Form 505) . . . . . . . . . . . . . .                                . . . . . . . ______________
  3.Out of state credit (from line 67 of Form 502 or 504) . . . . . . . . . . . . . . . . . . . . .               ___________________
  4.Business tax credits (from line 68 of Form 502 or 505) . . . . . . . . . . . . . . . . . . . .                ___________________
  5.Total tax developed on tax preference items . . . . . . . . . . . . . . . . . . . . . .                       ___________________
  6.Total (Add lines 3, 4 and 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         .......               ______________
  7.Balance (line 2 less line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           .......               ______________
  8.Multiply line 7 by 90% (.90) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 .......               ______________
  9.1996 tax (Enter line 62c (reduced by any credits on lines 67 and 68) of 1996 Form 502, 503 or 504,
    or line 62 (reduced by any credits on line 68) of 1996 Form 505) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               . . . . . . . ______________
10. Minimum withholding and/or estimated tax required (Enter the lesser of line 8 or 9.) . . . . . . . . . . . . . . . . . . .                                 . . . . . . . $ ______________

                                                                                                                                           DUE DATES OF INSTALLMENTS
                                                                                                                          April 15, 1997    June 16, 1997   September 15, 1997 January 15, 1998
                                  INSTALLMENT PERIODS . . . . . . . . . . . . . . . . . . . .                              Jan. 1 to         Jan. 1 to           Jan. 1 to               Jan. 1 to
                                                                                                                            Mar. 31          June 30             Sept. 30                 Dec. 31

11. Divide total Maryland income on line 1 into earnings per period
       (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Divide net earnings per period on line 11 by the amount
    on line 1 to determine the percent per period . . . . . . . . . . . . . . . . . . .
13. Payments required. Multiply the amount on line 10 by the
    percent on line 12 for each period . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Estimated tax paid and tax withheld per period
       (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Underpayment per period (line 13 less line 14) If less than zero,
    enter zero. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                              COMPUTATION OF INTEREST

                                                                                                                           .0221              .0324              .0435                   .0321
16. Interest factor (based on 13% annual rate) . . . . . . . . . . . . . . . . . . . . . .
17. Multiply underpayment on line 15 by the factor on line 16 for
    each period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Interest (Add amounts on line 17) Place total on line 74 of Form 502, 503, 504 or 505
    and include amount in your total payment with return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




COT/RAD-017
INSTRUCTIONS
FOR                                       UNDERPAYMENT OF ESTIMATED                                                                        PAGE 2

FORM 502UP
1997
                                             MARYLAND INCOME TAX
                                                BY INDIVIDUALS
GENERAL INSTRUCTIONS                                                           Line 14
                                                                               Enter in each column the sum of any estimated payments you
   Section 10-815 of the Tax-General Article of the Annotated Code          have made and any Maryland tax withheld for the period covered by
of Maryland requires every individual, or husband and wife living           that column. NOTE: Just as in line 11, each successive entry will
together, who receives taxable income which is not subject to Mary-         include the amount from the prior columns. For example, if you paid
land withholding or from which not enough Maryland tax is withheld          $500 in estimated payments each quarter, the first column will con-
to file a Declaration of Estimated Tax if the income can be expected        tain $500, the second $1,000, the third $1,500 and the fourth $2,000.
to develop a tax of more than $250.00 in excess of the Maryland
withholding. Furthermore, Sections 13-602 and 13-702 stipulate that           Lines 16 through 18 determine the amount of interest due for each
any individual so required to file, who either (1) fails to file on the     underpaid quarter.
date or dates prescribed; (2) fails to pay the installment or install-         Line 16
ments when due; or (3) estimates a tax less than ninety (90) percent           The factors represent the interest rate for the portion of the year
of the developed tax shown on the return for the current taxable year       between the due date of each quarter and the due date of the next
and less than the tax paid for the prior year, shall be subject to          quarter. If your estimated tax payment was not timely, but was paid
penalty and interest.                                                       earlier than the due date of the next quarter, you may adjust the
                                                                            factor by dividing the number of days from the date the payment was
                                                                            due to the date it was paid by 365 and multiplying the result by 13%.
WHO MUST FILE                                                               Apply this adjusted factor to the underpaid amount on line 15.
   If you believe that you are liable for interest for one of the reasons     Line 17
outlined above, please complete and submit this form with your tax            Using the factors on line 16 or the adjusted factor described
return.                                                                     above, determine the amount of interest due for each quarter and
   If you meet one of the exceptions shown on page 1, you are not           enter the amounts in the appropriate columns.
required to file this form.
   If you want us to figure the interest for you, complete your return as      Line 18
usual. Do not file Form 502UP. You will be notified of any interest due.       Add all interest amounts in Columns 1 through 4 on line 17. Enter
                                                                            the total interest on the appropriate line of your tax return.
                                                                               If the interest calculated on line 18 is zero, enter code number 301
SPECIFIC INSTRUCTIONS                                                       in the box marked “code number” on page 2 of Form 502. Attach this
                                                                            form to your Form 502, 503, 504 or 505.
   Lines 1 through 10 are used to determine the minimum amount
required to be paid by estimated or withholding tax to avoid interest.
   Lines 1–4                                                                FARMERS AND FISHERMEN
   Enter the amounts specified from your 1997 Form 502, 503, 504               If your gross income from farming or fishing is at least two-thirds
or 505.                                                                     of your total estimated gross income for the year, the 1997 declaration
   Line 5                                                                   and full payment of the estimated tax is due on or before January 15,
   Multiply the amount on line 5 of Form 502TP by 5% (.05). Apply           1998. In lieu of filing the declaration, you may elect to file your full
the local tax rate in effect for your return and enter the sum on           and complete annual return on or before March 1, 1998 and make full
this line.                                                                  payment of the developed tax at that time.
                                                                               If you fail to do either of the above, and the income not subject to
  Line 9                                                                    withholding or from which not enough Maryland tax is withheld would
  If your 1996 tax was corrected or amended, be sure to include any         be expected to develop a tax of more than $250.00, then you are
additional tax when calculating your total tax for the year.                subject to interest. To compute the applicable interest charge, com-
  Lines 11 through 15 will determine which periods are underpaid            plete lines 1 through 10 of this form. Enter the amount from line 10
and the amount of underpayment.                                             on line 13, column 4 and complete the rest of the form. Only column
                                                                            4 will have entries.
   Line 11                                                                     To claim exemption from this interest charge or to use the special
   Enter in each column the income received for the period of the           calculation, enter code number 300 in the box marked “code number”
year covered by that column. If your income was received evenly             on page 2 of Form 502.
throughout the year, enter one-fourth of line 1 in column 1, one-half
of line 1 in column 2, three-fourths of line 1 in column 3 and an
amount equal to line 1 in column 4. Otherwise, allocate to each             INCOME TAXABLE BY ANOTHER STATE
period the amount of income received between the dates for each
installment shown at the top of each column. NOTE: Regardless of              If at least 90% of your taxable income is taxable by another state,
whether you use an even distribution or base your entries on the            and the underpayment is not greater than the local tax, no interest is
actual receipt dates, each successive column will include the               due and you are not required to file this form.
amount from the prior columns. See the example in the instructions            To claim exemption from this interest charge, enter code number
for line 14.                                                                302 in the box marked “code number” on page 2 of Form 502.
                                                        UNDERPAYMENT OF ESTIMATED                                                                                                         1997
                    FORM


          502 UP
                                                           MARYLAND INCOME TAX
                                                              BY INDIVIDUALS
             SEE EXPLANATION ON REVERSE. ATTACH THIS FORM TO FORM 502, 503, 504 OR 505.

                                       IMPORTANT: PLEASE REVIEW THE INSTRUCTIONS BEFORE COMPLETING THIS FORM.

                                                              FARMERS AND FISHERMEN SEE BACK OF FORM FOR COMPUTATION

                                                           IF YOUR INCOME IS TAXABLE BY ANOTHER STATE, SEE BACK OF FORM.
Your first name and initial                                                                Last name                                                        Social security number



Spouse’s first name and initial                                                            Last name                                                        Social security number



                                                                     EXCEPTIONS WHICH AVOID THE UNDERPAYMENT INTEREST

No Interest is Due And This Form Should Not Be Filed If:
 A. The tax liability on gross income after deducting Maryland withholding is $250 or less, or
 B. Each current year payment, made quarterly as required, is equal to or more than one-fourth of last year’s taxes.

                                                                     COMPUTATION OF UNDERPAYMENT – LINES 1 THROUGH 15
  1.Total Maryland income (from line 55 of Form 502, 503 or 505 or from line 57 of Form 504) . . . . . . . . . . . . . . . . . . .                             . . . . . . . $ ______________
  2.1997 Maryland and local tax (from line 62c of Form 502, 503 or 504 or from line 62 of Form 505) . . . . . . . . . . . . . .                                . . . . . . . ______________
                                                                                                                  ___________________




                                                                                                  Y
  3.Out of state credit (from line 67 of Form 502 or 504) . . . . . . . . . . . . . . . . . . . . .
  4.Business tax credits (from line 68 of Form 502 or 505) . . . . . . . . . . . . . . . . . . . .                ___________________
                                                                                                                  ___________________




                                                                                                P
  5.Total tax developed on tax preference items . . . . . . . . . . . . . . . . . . . . . .
  6.Total (Add lines 3, 4 and 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         .......               ______________
                                                                                                                                                                                     ______________




                                                                                              O
  7.Balance (line 2 less line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           .......
  8.Multiply line 7 by 90% (.90) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 .......               ______________




                                                                      C
  9.1996 tax (Enter line 62c (reduced by any credits on lines 67 and 68) of 1996 Form 502, 503 or 504,
    or line 62 (reduced by any credits on line 68) of 1996 Form 505) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               . . . . . . . ______________
10. Minimum withholding and/or estimated tax required (Enter the lesser of line 8 or 9.) . . . . . . . . . . . . . . . . . . .                                 . . . . . . . $ ______________

                                                                                                                                           DUE DATES OF INSTALLMENTS
                                                                                                                          April 15, 1997    June 16, 1997   September 15, 1997 January 15, 1998
                                  INSTALLMENT PERIODS . . . . . . . . . . . . . . . . . . . .                              Jan. 1 to         Jan. 1 to           Jan. 1 to               Jan. 1 to
                                                                                                                            Mar. 31          June 30             Sept. 30                 Dec. 31

11. Divide total Maryland income on line 1 into earnings per period
       (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12. Divide net earnings per period on line 11 by the amount
    on line 1 to determine the percent per period . . . . . . . . . . . . . . . . . . .
13. Payments required. Multiply the amount on line 10 by the
    percent on line 12 for each period . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14. Estimated tax paid and tax withheld per period
       (See instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15. Underpayment per period (line 13 less line 14) If less than zero,
    enter zero. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


                                                                                              COMPUTATION OF INTEREST

                                                                                                                           .0221              .0324              .0435                   .0321
16. Interest factor (based on 13% annual rate) . . . . . . . . . . . . . . . . . . . . . .
17. Multiply underpayment on line 15 by the factor on line 16 for
    each period. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18. Interest (Add amounts on line 17) Place total on line 74 of Form 502, 503, 504 or 505
    and include amount in your total payment with return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




COT/RAD-017
Your rights as a
Maryland taxpayer
     Whenever you contact us, you                   If you can’t pay
     have a right to . . .                          the state taxes
     • Fair treatment and helpful advice            you owe, you
     • Tax forms and instructions that will         have a right to . . .
       help you comply with the law
                                                    • An explanation of the collection process
     • Prompt response to your questions            • Ask for a payment plan. You should
                                                     expect us to record a tax lien to protect
     If you need help with your state                the state’s interests if we offer you a
     tax return, you have a right to . . .           lengthy payment plan
     • Free forms and instructions 24-hours
       a day, 7-days a week on our website,         If you are assessed
       www.comp.state.md.us, and Forms-             additional tax or your
       by-Fax system at 410-974-FAXX (3299)         refund is denied, you have
     • Free assistance and state tax return         a right to . . .
       preparation at any of our offices
     • A free copy of your previously filed         • File an appeal and ask for your case
       state tax return if you write:                 to be heard by a hearing officer
            Comptroller of the Treasury             • Have someone represent you, or you
               Custodian of Records                   can act on your own behalf
            Annapolis, MD 21411-0001                • Receive a written explanation of the
                                                      appeal process
     After you file your state tax                  • Tape record the hearing
                                                    • Appeal the hearing officer’s decision
     return, you can expect we’ll . . .               to Maryland Tax Court
     • Check the income, exemptions,
       credits, and deductions you report           Your tax records are private,
     • Disallow items that cannot be                and we will . . .
       documented
     • Assess the penalty and interest              • Keep your tax records strictly
       allowed by law                                 confidential
     • Give you up to three years from the          • Disclose tax information from your
       due date of a return to claim any              return only when permitted by law
       refund you are due

     If we change the amount of
     your refund or amount due on
     your state tax return, you have
     a right to . . .
     • A written explanation telling you why
     •
       the change was made
       A written notice if your refund was
       reduced because of money you owed
       to another state or federal agency, or
                                                $              Just ask about
                                                               ELECTRONIC
                                                               FILING
                                                                                   for FAST
                                                                                   Maryland
                                                                                   tax refunds


       because you owed child support                  See your commercial tax preparer


26
       
                                 THE CHECKOFF WORKS


      t LINE 63A
     CHECKOFF DONATIONS are at work across the state supporting hundreds of community-based
     Bay restoration and wildlife protection activities. Please consider a tax deductible contribution
     to these special causes that affect the quality of life in our state.
        1.                 
             Check Box at t line 63A.
        2.   Enter amount you choose to donate.
        3.   The amount will be deducted from your refund or added to your tax payment.
        4.   The donation is tax-deductible in the following year.
     Donations are divided evenly between the Bay restoration grants program of the Chesapeake Bay Trust and the nongame and
     endangered species programs of the Fish Heritage and Wildlife Administration of the Department of Natural Resources.
     For further information call the Chesapeake Bay Trust at 410-974-2941 or the Department of Natural Resources
     at 410-974-3195.



                             Help Our Wildlife – Back Our Bay


You can make a contribution...
... to the Fair Campaign
Financing Fund. Your contribution helps
to provide a funding alternative to large
private contributions in elections for
governor/ lieutenant governor when candidates accept
a spending limit.
  1. Check line 63b on your Maryland income tax form.
  2. Enter amount you choose to donate (up to $500).
  3. The amount will be deducted from your refund or added to your tax payment.


                                                                                                                               27
     IMPORTANT NOTICE ABOUT A STATE OF MARYLAND
      HOMEOWNERS’ PROPERTY TAX CREDIT PROGRAM
   Under Maryland law, you may be eligible for a substantial credit on the property tax bill issued on your home, based
upon your gross household income. This program is available to homeowners of all ages and the credit is calculated
solely on the basis of gross income. The application form is not provided here in this income tax booklet because the
credits are issued as a deduction from the homeowner’s July property tax bill. The property tax credit application
forms are processed separately by the Maryland Department of Assessments and Taxation.
   You should use the chart printed below to see if it would be worthwhile for you to submit a Homeowners’ Tax Credit
application. If the actual property taxes on your home (based on no more than $60,000 of assessment) exceed the
“Tax Limit” amount shown on the table below for your household income level, you may be eligible for a credit and
are urged to file an application. The table is printed for illustrative purposes, and therefore, the income amounts are
listed in increments of $1,000. For purposes of this program, the applicant must report total income, which means the
combined gross household income before any deductions are taken. Nontaxable income, such as Social Security,
Railroad Retirement or Veterans’ benefits, also must be reported as income for the tax credit program.
      1997 COMBINED                            1997 COMBINED                           1997 COMBINED
  GROSS HOUSEHOLD INCOME                  GROSS HOUSEHOLD INCOME                  GROSS HOUSEHOLD INCOME
     BEFORE DEDUCTIONS        TAX LIMIT      BEFORE DEDUCTIONS        TAX LIMIT      BEFORE DEDUCTIONS       TAX LIMIT
          $0- 4,000             $ 0                13,000               395                22,000              1,160
              5,000               25               14,000               470                23,000              1,250
              6,000               50               15,000               545                24,000              1,340
              7,000               75               16,000               620                25,000              1,430
              8,000              100               17,000               710                26,000              1,520
              9,000              155               18,000               800                27,000              1,610
             10,000              210               19,000               890                28,000              1,700
             11,000              265               20,000               980                29,000              1,790
             12,000              320               21,000             1,070                30,000              1,880
                                                                                           and up             *1,880
  *For each additional $1,000 of income add $90 to $1,880 to find the amount that your tax must exceed.
  If you think you might qualify on the basis of your household income, there are certain other legal requirements
which must be met. Due to space restrictions, not all of the other special limitations can be listed here in this notice.
The purpose of this notice is simply to advise you of the availability of the program and to suggest that you inquire
further if you think you qualify on the basis of the income chart provided above.
  To obtain a Homeowners’ Tax Credit application form or to receive further information about your eligibility for the
program, you should telephone 410-767-4433 in the Baltimore metropolitan area or 1-800-944-7403 (toll free) for
those living elsewhere in Maryland. The application form explains the various program requirements in detail. The
deadline for filing a Homeowners’ Tax Credit application is September 1, 1998.

                                       RENTERS’ TAX CREDIT PROGRAM
  The State of Maryland also makes available a Renters’ Tax Credit of up to $600 a year for renters age 60 and over
or those 100% disabled if they qualify on the basis of income. Renters under age 60 who have a dependent child may
be eligible for a credit if certain separate income requirements are met. To obtain a Renters’ Tax Credit application
form or to receive further information about the program, you may telephone 410-767-4433 in the Baltimore metro-
politan area or 1-800-944-7403 (toll free) for those living elsewhere in Maryland. The filing deadline for the Renters’
Program is September 1, 1998.
REAL PROPERTY TAX EXEMPTIONS FOR 100% DISABLED VETERANS AND BLIND PERSONS
  There is a complete exemption from real property taxes on the dwelling house owned by disabled veterans with
a 100% service connected permanent disability or by their surviving spouses. The State also allows an exemption
on the first $6,000 of assessment on the dwelling house owned by legally blind persons. For further information
about either exemption, please telephone 410-767-4433 in the Baltimore area or 1-800-944-7403 (toll free) in other
areas of Maryland.


28
                                    Estimated Revenues and Expenditures
                                             for Fiscal Year 1998
                              With amounts in millions of dollars and percentage of esimated total revenues and expenditures.


                              Estimated Revenues                                                      Estimated Expenditures                                             % of Total

                                                                                                      Public Education                             $ 5,393                    34.94
   Sales & Use Tax                                                                                    Health, Hospitals,
        $2,171.0                                                                                        Mental Hygiene                                 3,411                  22.10
                                                                 Income Tax                           Transportation                                   2,309                  14.96
          14%                                                      $4,125.1                           Human Resources,
State Education                                                      27%                                Economic Development                           1,325                    8.59
   $1,487.0                                                                                           General Government                               1,219                    7.90
      10%                                                                                             Public Safety and State Police                     907                    5.88
Gas Tax, Motor                                                                                        Natural Resources,
   Vehicle                                                       Federal                                Agriculture, Environment                          363                   2.35
  $1,228.7                                                        Funds                               Public Debt                                         336                   2.18
     8%                                                          $3,446.4                             Housing and Community
      All Other Revenue                                            22%                                  Development                                       115                   0.74
           $3,007.9                                                                                   Shared Taxes                                         66                   0.43
             19%                                                                                      Less Reversions                                      (6)                 (0.04)
                                                                                                      Total                                        $15,438                  100.00




                                                              Topical Index by Instruction Number
                                        Instruction No.                                             Instruction No.                                                  Instruction No.
Accrual basis accounting . . . . . . . . . . . .25                Extension of time to file . . . . . . . . . . . . .24        Payment instructions . . . . . . . . . . . . . . .24
Additions to income . . . . . . . . . . . . . . . .12                                                                          Pension exclusion . . . . . . . . . . . . . . . . .13
Adjustments to income . . . . . . . . . . . . . .11               Fair Campaign Financing Fund . . . . . . . .20               Pickup amount . . . . . . . . . . . . . . . . .12, 13
Adoption expenses . . . . . . . . . . . . . . . .13               Farm products, donated . . . . . . . . . . . . .13           Policemen
Age 65 or over . . . . . . . . . . . . . . .1, 10, 13             Fiduciary . . . . . . . . . . . . . . . . . . . . .12, 13         (see Firemen and policemen) . . . . .13
Alimony . . . . . . . . . . . . . . . . . . . . . . . . .11       Firemen and policemen,                                       Poverty level income . . . . . . . . . . . . . . .13
Ambulance, fire, rescue, length of                                     official vehicle . . . . . . . . . . . . . . . .13      Preparer, paid . . . . . . . . . . . . . . . . . .5, 23
   service award . . . . . . . . . . . . . . . . . .13                 pension and disability payments . . .13                 Privacy Act . . . . . . . . . . . . . . . . . . . . . .30
Amended return . . . . . . . . . . . . . . . . . . .29            Fiscal year . . . . . . . . . . . . . . . . . . . . . .25
Artist’s contribution . . . . . . . . . . . . . . . .13           Form 123 . . . . . . . . . . . . . . . . . . . . . . . .1    Qualified retirement plan . . . . . . . . . . . .12
Attachments . . . . . . . . . . . . . . . . . . . . .23           Form 503 (short form) . . . . . . . . . . . . . . .3
                                                                                                                               Railroad retirement benefits . . . . . . .11, 13
Balance due . . . . . . . . . . . . . . . . . . . . .22           Handicapped students,                                        Reader for a blind person . . . . . . . . . . . .13
Baltimore City . . . . . . . . . . . . . . . . . . . . .6              assistance for . . . . . . . . . . . . . . . . .13      Reforestation . . . . . . . . . . . . . . . . . . . . .13
Beneficiary of a fiduciary . . . . . . . . .12, 13                Head of household . . . . . . . . . . . . . . . . .7         Refund . . . . . . . . . . . . . . . . . . . . . . . . .22
Blind person, reader for . . . . . . . . . . . . .13              Historic preservation . . . . . . . . . . . . . . .13        Refund, when not required to file . . . . .1, 7
Blind Taxpayer . . . . . . . . . . . . . . . . . . . .10                                                                       Refunds,
                                                                  IRA deduction . . . . . . . . . . . . . . . . . . . .11           State and local income tax . . . . . . .13
Bonds, State and local . . . . . . . .11, 12, 13                  Itemized deduction method . . . . . . . .14, 16
Bonds, U.S. Savings . . . . . . . . . . . . . . .13                                                                            Residence . . . . . . . . . . . . . . . . . . . . .1, 26
                                                                  Joint return . . . . . . . . . . . . . . . . . . . . .7, 8   S corporation . . . . . . . . . . . . . . . . . . . . .12
Cash basis accounting . . . . . . . . . . . . . .25
Charitable travel expense . . . . . . . . . . . .13               Keogh retirement . . . . . . . . . . . . . . . . . .13       Signature . . . . . . . . . . . . . . . . . . . . . . .23
Chesapeake Bay and Endangered                                                                                                  Social security income . . . . . . . . . . .11, 13
  Species Fund . . . . . . . . . . . . . . . . . .20              Local income tax . . . . . . . . . . . . . . . . . .19       Standard deduction method . . . . . . . . . .16
Child care expenses . . . . . . . . . . . . .12, 13               Lump sum distribution . . . . . . . . . . . . . .12          State retirement or pension . . . . . . . .12, 13
Code number . . . . . . . . . . . . . . . . . . . .23                                                                          Students (see Dependent taxpayer) . . . . .7
                                                                  Mailing instructions . . . . . . . . . . . . . . . .24       Subtractions from income . . . . . . . . . . . .13
Cogenerator . . . . . . . . . . . . . . . . . . . . .21           Mailing label . . . . . . . . . . . . . . . . . . . . . .4
Conservation tillage equipment . . . . . . . .13                  Married filing separately . . . . . . . . .7, 8, 19          Tax preference items . . . . . . . . . . . . . . .12
Credits . . . . . . . . . . . . . . . . . . . . . . . . .21       Military personnel . . . . . . . . . . . . . .1, 9, 27       Tax table . . . . . . . . . . . . . . . . . . . . . . . .17
Deadlines . . . . . . . . . . . . . . . . . . . . . . .24               overseas income . . . . . . . . . . . . . .13          Tax withheld . . . . . . . . . . . . . . . . . . . . .21
Deceased spouse . . . . . . . . . . . . . . .7, 28                      retirement income . . . . . . . . . . . . . .13        Tax year . . . . . . . . . . . . . . . . . . . . .25, 26
Deceased taxpayer . . . . . . . . . . . . . . . .28               Minimum filing requirements . . . . . . . . . . .1           Taxes paid to another state . . . . . . . . . .21
Dependent taxpayer . . . . . . . . . . . . . . .1, 7              Mutual funds . . . . . . . . . . . . . . . . . . . . .13     Timber stand improvement . . . . . . . . . . .13
Dependents . . . . . . . . . . . . . . . . . . . . . .10                                                                       Towns, Cities,
                                                                  Neighborhood preservation credit . . . . . .21                    Taxing Areas . . . . . . . . . . . . . . . . . .6
Domicile . . . . . . . . . . . . . . . . . . . . . . . . .1       Net operating loss . . . . . . . . . . . . . . . . .12       Two-income subtraction . . . . . . . . . . . . .13
Earned income credit . . . . . . . . . . . . . . .18              Nonresident income . . . . . . . . . . . . .13, 26
Enterprise zone credit . . . . . . . . . . .12, 21                                                                             U.S. bond interest . . . . . . . . . . . . . . . . .13
                                                                  Oil depletion allowance . . . . . . . . . . . . .12
Estimated tax, declaration                                        Overpayment . . . . . . . . . . . . . . . . . . . . .22      Volunteer fire company . . . . . . . . . . . . .13
     payments . . . . . . . . . . . . . . . . . . . .21
     underpayment . . . . . . . . . . . . . . . .22               Part-year residents . . . . . . . .9, 10, `16, 26            Widow(er) . . . . . . . . . . . . . . . . . . . . . . . .7
Exemptions . . . . . . . . . . . . . . . . . . .10, 16            Partnership investments . . . . . . . . . .12, 13
                                                     Need tax help?
                                        410-974-3981 from Central Maryland
                                 1-800-MD TAXES (1-800-638-2937) from elsewhere
                                   The best times to call are Wednesday through Friday.
                               Save tax dollars by using the local number whenever possible.

                                          Want refund information?
                                          410-974-3701 from Central Maryland
                                     or 1-800-218-8160 from elsewhere in the state
         This automated refund hotline is available 24-hours a day, 7-days a week for toll-free information
              about your state tax refund. Have a copy of your tax return ready to verify information.

                                                       Need forms?
                       Forms by Fax                                                       Forms on the Internet
         Use our Forms-by-fax system for copies                                  Visit our web site for tax forms, instructions,
         of forms, brochures and other information.                        publications and e-mail access to taxpayer assistance.
            410-974-FAXX (410-974-3299)                                                  www.comp.state.md.us
                                                 Call for Forms 410-974-3951
                               Place an order 24-hours a day and your forms will be mailed to you.

How we can help                                                         Taxpayer service offices
E-mail your questions                                                   We’ll prepare your Maryland return free of charge if you
In addition to telephone and walk-in assistance, you can                bring a completed copy of your federal return and all W-2
e-mail your questions to taxhelp@comp.state.md.us.                      statements. You may obtain forms and assistance with your
                                                                        tax return from the following taxpayer service offices:
Electronic filing                                                       Annapolis          110 Carroll St., 1st Floor    410-974-3981
Consider electronic filing for fewer errors and faster refunds.         Baltimore          301 W. Preston St., Room 206 410-767-1995
It’s often free – just ask your tax preparer. You may file              Bel Air            2 S. Bond St., 4th Floor      410-836-4890
electronically even if you owe additional tax.                          Centreville        120 Broadway, Room 205        410-758-5050
                                                                        Cumberland         112 Baltimore St., 2nd Floor  301-777-2165
Filing extensions without paper
                                                                         Garrett County Residents                        301-334-8880
If you do not owe additional tax but need an extension
of time to file your Maryland income tax return, you can                Denton             207 S. 3rd St., Room 68       410-479-5720
file your extension request by calling 410-974-5TAX                     Elkton             170 E. Main St.               410-996-0580
(410-974-5829). You may also file for an extension on the               Ellicott City      3451 Court House Dr.          410-461-0170
Comptroller’s web site.                                                 Frederick          100 W. Patrick St., Room 2110 301-694-1982
                                                                        Hagerstown         1 S. Potomac St.              301-791-4776
Need special assistance?                                                Jessup             7275-B Waterloo Rd.           410-799-4009
If you are planning to visit one of our offices and need                Leonardtown        23110 Leonard Hall Dr.        301-475-4850
reasonable accommodation for a disability, please contact               New Carrollton 8181 Professional Pl., Ste. 101 301-459-9195
us in advance of your visit. Hearing impaired individuals
                                                                        Prince Frederick 200 Duke St., 2nd Floor         410-535-8830
may call:
                                                                        Salisbury          201 Baptist St., Room 2248    410-543-6800
Baltimore Metro (TTY) . . .410-974-3157 or 410-767-1967                 Towson             300 E. Joppa, PL-1A           410-321-2306
Washington Metro (TTY) . . . . . . . . . . . . . .301-565-0450          Upper Marlboro 14735 Main St., Room 083B 301-952-2810
Wheaton (TTY) . . . . . . . . . . . . . . . . . . . .301-949-6032       Waldorf            123 Smallwood                 301-645-2226
Maryland Relay Service (MRS) . . . . . . .1-800-735-2258                                     Village Center                or 301-843-0977
                                                                        Westminster          700 Corporate Center Ct., Ste.C 410-848-4699
Large format tax forms . . . . . . . . . . . . . . .410-974-3951        Wheaton              11510 Georgia Ave., Ste. 190 301-949-6030

 Extra tax help
 Free state income tax assistance, including tax form preparation, is available from any of the State Comptroller’s Taxpayer Assistance
 Offices, Monday through Friday, 8:00 a.m. until 5:00 p.m. In addition, the offices will be open the following holidays and special hours:
 Monday, January 19, 1998            8:00 a.m.-5:00 p.m.                         Saturday, April 4, 1998             9:00 a.m.-1:00 p.m.
 Monday, February 16, 1998           8:00 a.m.-5:00 p.m.                         Saturday, April 11, 1998            9:00 a.m.-1:00 p.m.