Maryland Form 505NR is the Nonresident Income Tax Calculation worksheet that nonresidents attach to Form 505 (or Form 515) to figure how much Maryland tax they owe on Maryland-source income. It takes the tax on your full income and shrinks it down to a fair share based on the slice of money you actually earned in Maryland.
If you skip this form or run the math wrong, you can end up paying tax on income Maryland has no right to touch, or you can shortchange the state and trigger a notice. The current version carries a 09/25 revision date in the bottom corner, so make sure the form you grab says 2025 and 09/25 before you write a single number. About 1 in 7 Maryland personal income tax returns is filed by a nonresident or part-year filer, which means hundreds of thousands of people wrestle with this exact worksheet every spring.
Here is what you will walk away knowing:
- 🧾 What Form 505NR does and exactly who has to file it
- 📋 Every document and number to gather before you start
- ✏️ A plain-English, line-by-line walkthrough of Parts I and II
- 👥 Three real filled-out examples you can copy from
- ⚠️ The field-level mistakes that cause refunds to vanish
What the Form Is and Who Must File It
Form 505NR is a calculation schedule, not a stand-alone return. You never mail it by itself. It rides along with Form 505, the Nonresident Income Tax Return, or with Form 515 for people who owe a Maryland local tax. The Comptroller of Maryland receives both forms together, and the office is led by Comptroller Brooke E. Lierman.
You must file if three things are all true at once. You are a nonresident of Maryland, you are required to file a federal return based on the IRS income levels, and you received income from Maryland sources. That Maryland-source income usually means wages for work done in Maryland, rent from Maryland property, or profit from a business run in the state, as spelled out in the Tax-General Article.
The statute behind this is Maryland Tax-General § 10-210, which says nonresidents pay tax only on Maryland income. The consequence of ignoring it is real money. If you report your whole income as Maryland income because you misread the form, you can overpay by thousands. A common misconception is that a nonresident pays Maryland tax at a flat low rate. The truth is that Maryland first figures the tax on your entire income to set the rate, then applies that rate only to the Maryland portion, which is the whole point of Form 505NR.
You do not need to file if your Maryland gross income is below the minimum filing level, if you had no Maryland-source income, or if you live in DC, Virginia, West Virginia, or a non-taxing Pennsylvania jurisdiction and had only Maryland wages. Those four are the reciprocal states, and the special rules for them are covered later.
Before You Start: Documents and Information You Need
Gather everything below before you open the form. Form 505NR pulls almost every number from other lines on Form 505, so a missing figure stops you cold. The biggest reason returns get rejected or delayed is a number that does not match what the Comptroller already has on file.
- Completed federal return (Form 1040) — Maryland law requires your income and deductions to match the federal return exactly, so finish federal first or every line will be off.
- Your finished Form 505 through Line 32 — Form 505NR feeds off Lines 17, 21, 22, 23, 26, 28, and 31 of Form 505, so it cannot be done before Form 505 is mostly built.
- All W-2 forms — These show Maryland wages and any Maryland tax withheld, and missing one means you cannot claim a refund of that withholding.
- All 1099 forms — Rent, contractor pay, and investment income live here, and leaving one out understates income and invites a notice.
- Records of which income is Maryland-source — You must split income into Maryland and non-Maryland columns, and guessing wrong skews the income factor on Line 9.
- Your federal adjusted gross income (FAGI) — This single number anchors Line 3, and an error here throws off the entire factor.
- Your state of legal residence and local jurisdiction — This decides reciprocity and whether you file Form 505 or Form 515.
- The 2025 Maryland Tax Table or Computation Worksheet — You need this to find the tax on Line 2, and using a prior-year table produces the wrong tax.
- Your bank routing and account numbers — These are required for direct deposit of a refund or direct debit of a balance due.
If any item is missing, the safest move is to stop and find it. A guessed number on a tax form is not a placeholder; it is a sworn statement that can be audited.
Where to Get the Form and How to Access It
The only safe source is the official 2025 Form 505NR PDF on the Comptroller’s website. The matching line-by-line rules live inside the 2025 Nonresident Tax Forms and Instructions booklet, which also contains the tax tables you need for Line 2.
You can get the form three ways. You can download and print the PDF to fill out by hand in blue or black ink. You can use the state’s free iFile online service, which builds Form 505NR for you in the background once you enter your income. Or you can use approved commercial tax software, which also generates the form automatically.
Most software does the 505NR math without showing you the worksheet, which is convenient but hides errors. If you file on paper, you must use the exact official form because the Comptroller scans a barcode on it. A common mistake is printing last year’s form, since the layout and tax rates changed for 2025. Filing on the wrong year’s form forces a manual review and slows your refund by weeks. People often think any printout from a tax website counts, but only state-approved substitute forms are accepted, and a retail software box does not guarantee approval.
Step-by-Step: How to Fill Out Form 505NR Line by Line
Form 505NR has two parts. Part I finds the tax on your full taxable income as if you lived in Maryland all year. Part II then scales that tax down to your Maryland share using two factors carried to six decimal places. Work top to bottom and never skip a line, because each line feeds the next.
Part I, Line 1 — Taxable Net Income
This line asks for your taxable net income, the figure that already accounts for your deductions and exemptions on the full return. You copy it straight from Form 505, Line 31 (or Form 515, Line 32). Enter whole dollars only, with the 00 cents already printed on the form.
For example, David Chen finished Form 505 with a taxable net income of $92,400, so he writes 92,400 on Line 1. If you are a Form 515 filer instead, you pull from Line 32 of that form, not Line 31.
A common mistake is pulling from the wrong line, such as grabbing federal taxable income or Maryland adjusted gross income by accident. That single slip inflates or deflates the tax on Line 2 and corrupts every later line. People often believe Line 1 should be only their Maryland income, but it is the full taxable income on purpose, because Maryland needs your whole income to set the correct tax rate.
Part I, Line 2 — Tax From the Tax Table
This line asks for the Maryland tax on the amount you just entered on Line 1. You look up that amount in the 2025 tax table inside the instruction booklet and copy the matching tax. If Line 1 is $50,000 or more, you must use the Maryland Tax Computation Worksheet schedules at the end of the table instead.
For example, with $92,400 on Line 1, David Chen uses the computation worksheet because his income tops $50,000, and he enters the resulting tax of $4,505 on Line 2. After this line you move to Part II.
A nuance is that 2025 brought new tax brackets and rates, so a number from an old table will be wrong. A common mistake is reading the table line above or below the right income range, which produces a tax that is off by a few dollars and can snowball. Many filers think they can estimate this tax in their head, but you must use the published table or worksheet, since the Comptroller recomputes it and will correct any difference.
Part II, Line 3 — Federal Adjusted Gross Income
This line asks for your federal adjusted gross income (FAGI). You copy it from Form 505 (or 515), Line 17, Column 1. This is your total income from every source, before Maryland adjustments.
For example, Priya Nair had a FAGI of $130,000 on her federal return, so she enters 130,000 on Line 3. This number becomes the denominator for the income factor on Line 9, so accuracy matters.
A nuance is that Column 1 means the federal column, not the Maryland-only column to its right. A common mistake is entering Maryland income here instead of total income, which wrongly pushes the income factor toward 1.000000 and overstates your Maryland tax. People sometimes think FAGI and total wages are the same, but FAGI also folds in interest, dividends, and other income, so use the exact Line 17 figure.
Part II, Line 3a — Earned Income
This line asks for your earned income, meaning pay you got for work you performed. It includes wages, salaries, tips, professional fees, other compensation, and any taxable scholarship amount in your FAGI. It does not include rent, interest, dividends, or pensions.
For example, Priya Nair earned $118,000 in salary and writes 118,000 on Line 3a, leaving out her $12,000 of investment income. This line helps the state apply the correct earned-income rules later.
A nuance is that a taxable scholarship counts as earned income here even though it is not a paycheck. A common mistake is dumping your entire FAGI on this line, which misstates the earned portion. Many people think only W-2 wages count, but self-employment fees and tips belong here too.
Part II, Line 4 — FAGI Plus Additions
This line asks for your federal adjusted gross income plus Maryland additions. You copy the figure from Form 505 (or 515), Line 21, which already adds back items Maryland taxes that the IRS does not.
For example, Marcus Bell had a FAGI of $80,000 and $1,000 of state-bond interest as a Maryland addition, so his Form 505 Line 21 reads $81,000, and he enters 81,000 on Line 4. This becomes the starting point for your Maryland adjusted gross income.
A nuance is that additions are specific Maryland add-backs, not random extra income, and they are listed in the booklet’s Instruction 12. A common mistake is re-typing your plain FAGI here and forgetting the additions, which understates the base and the tax. People often confuse Line 4 with Line 3, but Line 4 is larger whenever you have any additions.
Part II, Line 5 — Taxable Military Income
This line asks for the taxable military income of a nonresident, pulled from Line 22 of Form 505. It applies only to active-duty service members with Maryland-taxable military pay, which is rare under the Servicemembers Civil Relief Act.
For example, most filers leave this blank, but Sgt. Ana Reyes, stationed in Maryland with a small taxable amount, enters 2,500 if Line 22 shows that figure. If it does not apply to you, leave the line empty rather than writing zero.
A nuance is that military legal residence does not change with duty station, so most service members owe no Maryland tax on military pay. A common mistake is reporting all military pay here, which can create tax you do not owe. A frequent misconception is that being stationed in Maryland makes you a Maryland resident, but it does not.
Part II, Line 6a — Subtractions
This line asks for your subtractions from Line 23 of Form 505 or Form 515. Subtractions are income items Maryland does not tax, such as certain pension exclusions or U.S. government interest.
For example, Marcus Bell has a $3,000 subtraction on Form 505 Line 23 and enters 3,000 on Line 6a. These amounts get removed from your Maryland income base.
A nuance is that subtractions are defined in the booklet’s Instruction 13 and must already appear on Form 505. A common mistake is inventing a subtraction that is not on the approved list, which the Comptroller will disallow. People often think any deduction can go here, but only listed Maryland subtractions qualify.
Part II, Line 6b — Non-Maryland Income
This is the trickiest line on the form. It asks for non-Maryland income from Form 505 (or 515) that has not already been counted on Line 5 or Line 6a. The goal is to capture income that is not taxable to Maryland so it can be subtracted out. You must not include non-Maryland losses or adjustments here, because those already flow through Line 18 of Form 505 into Line 4 of this form.
For example, Priya Nair lives in New Jersey and had $12,000 of investment income that is not Maryland-source, so she enters 12,000 on Line 6b. If you are a resident of a reciprocal state (DC, Pennsylvania, Virginia, or West Virginia) with Maryland wages, you must include those Maryland salaries and wages here, because reciprocity exempts them from Maryland tax.
A nuance is that residents required to file both Form 502 and Form 505 must also include income taxed as a resident on this line. A common mistake is leaving Maryland wages off Line 6b when you are a reciprocal-state filer, which causes Maryland to tax wages it is barred from taxing. A widespread misconception is that Line 6b is only for investment income, but it is the catch-all for all income Maryland cannot tax, including reciprocal wages.
Part II, Line 7 — Add Lines 5 Through 6b
This line asks you to total Lines 5, 6a, and 6b. The sum represents all the income being removed from your Maryland base. Simple addition is all this line needs.
For example, Priya Nair adds Line 5 (0), Line 6a (0), and Line 6b (12,000) for a total of 12,000 on Line 7. Double-check the arithmetic, since this number directly cuts your Maryland income.
A nuance is that a blank line counts as zero in this sum, so do not panic over empty fields. A common mistake is forgetting to include Line 6b in the total, which leaves taxable income too high. People sometimes think they should also add Line 4 here, but Line 7 is only the removal items.
Part II, Line 8 — Maryland Adjusted Gross Income
This line asks for your Maryland adjusted gross income. You subtract Line 7 from Line 4. The result is the income Maryland actually gets to tax.
For example, Priya Nair takes Line 4 ($130,000) minus Line 7 ($12,000) to get $118,000 on Line 8. This is the numerator for the income factor on the next line.
A nuance is that Line 8 can legally be zero or negative, and the form has rules for that on Line 9. A common mistake is subtracting in the wrong order, which produces a number that breaks the factor. Many filers assume this should equal their Maryland wages exactly, but it reflects all Maryland-taxable income after additions and removals.
Part II, Line 9 — Maryland Income Factor
This line asks for your Maryland income factor, found by dividing Line 8 by Line 3. You must carry the result to six decimal places. The factor cannot exceed 1.000000 and cannot be less than 0. If Line 8 is 0 or less, the factor is 0; if Line 8 is positive but Line 3 is 0 or less, the factor is 1.000000.
For example, Priya Nair divides Line 8 ($118,000) by Line 3 ($130,000) to get 0.907692, which she enters on Line 9. This decimal is the heart of the whole form, since it scales your deductions and exemptions.
A nuance is that rounding to fewer decimals throws the math off, so always carry six places. A common mistake is flipping the division and dividing Line 3 by Line 8, which can produce a factor above 1.000000 and overstate your tax. People often think the factor is a percentage to write as 90%, but it must be a six-decimal fraction like 0.907692.
Part II, Lines 10a and 10b — Deduction Amount
This line asks for your prorated deduction. If you use the standard deduction, multiply Form 505 Line 26a by the Line 9 factor and put it on Line 10a. If you itemize, multiply Form 505 Line 26e by the factor and put it on Line 10b. You use only one of the two lines.
For example, Priya Nair takes the standard deduction of $2,700 from Form 505 Line 26a, multiplies by 0.907692, and enters 2,451 on Line 10a. Choosing standard versus itemized here must match what you did on Form 505.
A nuance is that the 2025 standard deduction amounts increased, so use the current figure. A common mistake is using the full deduction without multiplying by the factor, which over-deducts and shorts the state. Many filers think nonresidents get the full deduction, but it is prorated by the income factor on purpose.
Part II, Line 11 — Net Income
This line asks for your net income after the deduction. Subtract Line 10a or 10b from Line 8. The result moves you toward taxable income.
For example, Priya Nair subtracts Line 10a ($2,451) from Line 8 ($118,000) to get 115,549 on Line 11. Use whichever deduction line you actually filled in.
A nuance is that you subtract from Line 8, not from Line 4, so keep the right base. A common mistake is subtracting the wrong deduction line, mixing standard and itemized. People sometimes forget this step entirely, which leaves taxable income overstated.
Part II, Line 12 — Exemption Amount
This line asks for your prorated exemptions. Multiply the total exemption amount on Form 505 Line 28 (or Form 515 Line 29) by the Line 9 factor. Like deductions, exemptions are scaled to your Maryland share.
For example, Priya Nair claims one $3,200 exemption, multiplies by 0.907692, and enters 2,905 on Line 12. The personal exemption is $3,200 and phases out as FAGI rises above $100,000.
A nuance is that the exemption shrinks at higher incomes, so confirm your amount on the booklet’s Exemption Amount Chart. A common mistake is using the full exemption without the factor, which over-claims. Many people think every nonresident gets a flat $3,200, but high earners get less and the factor reduces it further.
Part II, Line 13 — Maryland Taxable Net Income
This line asks for your Maryland taxable net income. Subtract Line 12 from Line 11. This figure drives both the nonresident factor and the special nonresident tax.
For example, Priya Nair subtracts Line 12 ($2,905) from Line 11 ($115,549) to get 112,644 on Line 13. Guard this number, since two later lines depend on it.
A nuance is that Line 13 can be zero or less, in which case later tax lines become zero. A common mistake is a subtraction slip that ripples into Lines 15, 16, and 17. People often confuse this with Line 1, but Line 13 is the Maryland slice, while Line 1 is the full amount.
Part II, Line 14 — Tax From Line 2
This line asks you to bring down the tax you already computed on Line 2 of this form. It is a straight copy, no new math. This is the full-income tax you are about to scale down.
For example, if Line 2 showed $4,505, then David Chen writes 4,505 on Line 14. Make sure it matches Line 2 exactly.
A nuance is that this is the tax on your whole income, not your Maryland income yet. A common mistake is recomputing the tax here from Line 13, which double-counts the scaling. People sometimes think Line 14 should be a smaller number, but it is the same as Line 2 by design.
Part II, Line 15 — Maryland Nonresident Factor
This line asks for your Maryland nonresident factor, found by dividing Line 13 by Line 1. Carry it to six decimal places. If the result is more than 1.000000, enter 1.000000; if 0 or less, enter 0.
For example, Priya Nair divides Line 13 ($112,644) by Line 1, and if Line 1 were $124,000 the factor would be 0.908419, which she enters on Line 15. This second factor fine-tunes the tax to your Maryland share.
A nuance is that Line 15 and Line 9 are different factors built from different numbers, so do not reuse Line 9 here. A common mistake is dividing Line 1 by Line 13, which inverts the fraction. People often assume the two factors are identical, but they rarely match.
Part II, Line 16 — Maryland Tax
This line asks for your Maryland tax. Multiply Line 14 by Line 15. You then copy this amount to Form 505, Line 32a (or Form 515, Line 33).
For example, Priya Nair multiplies Line 14 by the Line 15 factor of 0.908419 to reach her Maryland tax, say 4,093, and enters it on Line 16 and on Form 505 Line 32a. This is the core state tax you owe.
A nuance is that you must transfer this number back to Form 505 or the return is incomplete. A common mistake is multiplying by the wrong factor, such as Line 9 instead of Line 15. People sometimes stop at Line 16 and forget the next line, missing the special tax.
Part II, Line 17 — Special Nonresident Tax
This line asks for the special nonresident tax. Multiply Line 13 by 0.0225 (the 2.25% rate) and copy the result to Form 505, Line 32b. If Line 13 is 0 or less, enter 0. This tax stands in for the local income tax that residents pay.
For example, Priya Nair multiplies Line 13 ($112,644) by 0.0225 to get 2,534 on Line 17. Maryland charges this because nonresidents do not pay a county local tax.
A nuance is that the rate is set each year, and 2.25% applies for 2025, so confirm the figure on the current form. A common mistake is forgetting this line, which understates your total tax and triggers a balance-due notice. Many people think the state tax on Line 16 is all they owe, but the special nonresident tax on Line 17 is mandatory for Form 505 filers.
Part II, Line 18 — Local Income Tax (Form 515 Only)
This line applies only to Form 515 filers, who are nonresidents working in Maryland and living in a place that taxes Maryland residents. Multiply Line 13 by the local rate of the Maryland county (or Baltimore City) where you work, and enter it on Form 515, Line 39. Form 505 filers skip this line entirely.
For example, Carlos Mendez works in Baltimore City and files Form 515, so he multiplies Line 13 by the city local rate and enters the result on Line 18. Form 515 filers pay this local tax instead of the special nonresident tax on Line 17.
A nuance is that the local rate depends on where you work, not where you live. A common mistake is filing Form 505 when you should file Form 515, which uses the wrong tax. People often think every nonresident files Form 505, but those whose home jurisdiction taxes Maryland residents must use Form 515.
Three Filled-Out Examples Using Real Scenarios
These three filers show how the same worksheet behaves with different facts. Each uses the 2025 form and rounds to whole dollars.
Scenario 1: Priya Nair, New Jersey resident with Maryland wages and outside investment income
| Form Section | What Priya Enters |
|---|---|
| Line 1 (Taxable net income, Form 505 Line 31) | 124,000 |
| Line 2 (Tax from worksheet) | Computed Maryland tax on full income |
| Line 3 (FAGI, Form 505 Line 17 Col 1) | 130,000 |
| Line 6b (Non-Maryland income) | 12,000 |
| Line 8 (Maryland AGI) | 118,000 |
| Line 9 (Income factor, 6 decimals) | 0.907692 |
| Line 13 (Maryland taxable net income) | 112,644 |
| Line 16 (Maryland tax to Form 505 Line 32a) | 4,093 |
| Line 17 (Special nonresident tax, ×0.0225) | 2,534 |
Scenario 2: Marcus Bell, Pennsylvania resident (reciprocal state) with only Maryland wages
| Form Section | What Marcus Enters |
|---|---|
| Line 1 (Taxable net income) | 0 |
| Line 3 (FAGI, Form 505 Line 17 Col 1) | 81,000 |
| Line 4 (FAGI plus additions) | 81,000 |
| Line 6a (Subtractions) | 3,000 |
| Line 6b (Maryland wages as reciprocal resident) | 78,000 |
| Line 7 (Add Lines 5–6b) | 81,000 |
| Line 8 (Maryland AGI) | 0 |
| Line 9 (Income factor) | 0.000000 |
| Line 16 (Maryland tax) | 0 |
| Line 17 (Special nonresident tax) | 0 |
Marcus shows how reciprocity zeroes out Maryland tax: he puts his Maryland wages on Line 6b, which drives the factor to zero, so he owes no Maryland tax and files only to recover any wages withheld in error.
Scenario 3: David Chen, Florida resident with Maryland rental property income
| Form Section | What David Enters |
|---|---|
| Line 1 (Taxable net income, Form 505 Line 31) | 92,400 |
| Line 2 (Tax from computation worksheet) | 4,505 |
| Line 3 (FAGI, Form 505 Line 17 Col 1) | 140,000 |
| Line 6b (Non-Maryland income) | 115,000 |
| Line 8 (Maryland AGI, rental profit) | 25,000 |
| Line 9 (Income factor) | 0.178571 |
| Line 13 (Maryland taxable net income) | 24,100 |
| Line 16 (Maryland tax to Form 505 Line 32a) | 804 |
| Line 17 (Special nonresident tax, ×0.0225) | 542 |
David shows how a small Maryland slice of a large total income produces a low income factor, so his Maryland tax stays modest even though his full income is high.
How to File the Completed Form
Form 505NR never goes in by itself. You attach it to Form 505 (or Form 515) and submit them together through one of three channels. Keep proof of filing no matter which channel you pick.
Online (iFile or software): File free at the state’s iFile portal or through approved tax software. There is no filing fee for iFile, and the software builds Form 505NR automatically. E-filed refunds usually arrive in a few weeks, and you get an electronic acknowledgment to keep as proof. If you e-file and pay electronically, your payment date can extend to April 30.
By mail: Print Form 505 with Form 505NR attached and mail to the Comptroller of Maryland, Revenue Administration Division, 110 Carroll Street, Annapolis, Maryland 21411-0001. There is no fee to file by mail. Pay any balance due by check, or pay electronically at the Maryland bill-pay page. Paper refunds take longer, so keep a certified-mail receipt as proof.
Private delivery (FedEx or UPS): Use the same 110 Carroll Street address in Annapolis. Keep the carrier’s tracking receipt as your proof of timely filing.
The due date for tax year 2025 is April 15, 2026. If a due date lands on a weekend or holiday, the next business day applies. Pay by check or money order payable to Comptroller of Maryland, by direct debit when you e-file, or by credit card through the alternative-payment options on the Comptroller site.
What Happens After You File
Once the Comptroller receives your return, the office verifies your figures against W-2s, 1099s, and your federal return. If everything matches, a refund is issued; e-filers typically see money in a few weeks, while paper filers wait longer. You can track status on the Comptroller’s website.
If a number does not line up, you will get a notice asking for more information or proposing a change. The most common trigger is a mismatched income factor or a missing Line 17 special tax. Respond by the deadline on the notice, because ignoring it can lead to an assessment with interest.
The Comptroller can audit and revise any line on your return, since all items are subject to verification. Interest accrues on unpaid tax from the original due date, and penalties apply for late filing or underpayment. A common misconception is that a refund means your return is fully accepted, but the state can still review and adjust it for up to three years.
Mistakes to Avoid When Filling Out the Form
- Pulling Line 1 from the wrong source line, which sets the wrong tax and corrupts the entire calculation.
- Entering Maryland income on Line 3 instead of full FAGI, which inflates the income factor and overstates tax.
- Forgetting to put Maryland wages on Line 6b when you live in a reciprocal state, which makes you pay tax Maryland cannot legally charge.
- Rounding the Line 9 factor to fewer than six decimals, which produces a tax that does not match the Comptroller’s recalculation.
- Flipping the division on Line 9 or Line 15, which can push the factor above 1.000000 and overstate tax.
- Using the full standard deduction or exemption without multiplying by the factor, which over-deducts and creates a balance due.
- Skipping Line 17, the special nonresident tax, which understates total tax and triggers a notice.
- Filing Form 505 when your home jurisdiction taxes Maryland residents, when you actually owe Form 515 with local tax on Line 18.
- Using a prior-year form or tax table, which applies outdated rates and forces a manual review.
- Forgetting to transfer Line 16 to Form 505 Line 32a, which leaves the return incomplete and stalls processing.
- Including non-Maryland losses on Line 6b, when those belong on Line 18 of Form 505 and are already in Line 4.
- Mailing Form 505NR without the attached Form 505, which the Comptroller cannot process on its own.
Do’s and Don’ts
Do:
- Do finish your federal return first, because Maryland figures must match it exactly.
- Do carry both factors to six decimal places, since the math depends on that precision.
- Do put reciprocal-state wages on Line 6b, because that is what exempts them from Maryland tax.
- Do transfer Line 16 and Line 17 back to Form 505, because the return is not done until you do.
- Do use blue or black ink on paper forms, because other colors and pencil cause processing delays.
- Do keep proof of filing, because it protects you if the return is questioned.
Don’t:
- Don’t guess at which income is Maryland-source, because a wrong split skews the income factor.
- Don’t use the full deduction or exemption, because they must be prorated by Line 9.
- Don’t skip Line 17, because the special nonresident tax is mandatory for Form 505 filers.
- Don’t file last year’s form, because the 2025 rates and layout changed.
- Don’t write “none” or “zero” on blank lines, because the instructions say to leave them empty.
- Don’t staple or punch the barcode, because that blocks the scanner and delays your refund.
Pros and Cons of Filing on Your Own vs. With Help
| Filing on Your Own | Filing With a Professional |
|---|---|
| Free or low cost, because you avoid preparer fees. | Costs money, but the fee can be worth it for complex income. |
| Full control over every entry, so you see exactly how the factors work. | Less hands-on, but an expert catches reciprocity and sourcing issues you might miss. |
| Fast for simple wage-only returns, since the math is short. | Slower to schedule, yet faster overall when multiple states are involved. |
| Risk of factor and Line 6b errors, which can cost real money. | Lower error risk, because preparers know the six-decimal and reciprocity rules. |
| You bear full audit responsibility, so mistakes are yours. | Professional support if audited, which adds peace of mind. |
Frequently Asked Questions
Do I file Form 505NR by itself?
No. Form 505NR is a calculation worksheet that must be attached to Form 505 or Form 515. The Comptroller cannot process it alone, so always submit them together.
Do I owe Maryland tax if I live in Virginia and only earned Maryland wages?
No. Virginia is a reciprocal state, so your Maryland wages are exempt. Report them on Line 6b, and file only to recover any Maryland tax withheld in error.
Do I put my Maryland wages on Line 6b if I live in Pennsylvania?
Yes. Reciprocal-state residents include Maryland salaries and wages on Line 6b, which drives the income factor toward zero and removes Maryland tax on those wages.
Do I write the Line 9 factor as a percentage?
No. Line 9 must be a six-decimal fraction, such as 0.907692, not 90%. Carrying fewer decimals will make your tax disagree with the Comptroller’s figure.
Do I enter my full FAGI on Line 3 or just Maryland income?
Yes, enter full FAGI on Line 3. It is the denominator of the income factor, and using Maryland-only income there would wrongly inflate your Maryland tax.
Do I have to complete Line 17?
Yes, if you file Form 505. The special nonresident tax is Line 13 multiplied by 0.0225, and skipping it understates your tax and triggers a notice.
Do nonresidents get the full standard deduction?
No. The deduction is prorated by multiplying it by the Line 9 income factor on Line 10a or 10b. Using the full amount over-deducts and creates a balance due.
Do I use Line 9 again on Line 15?
No. Line 15 is a separate nonresident factor found by dividing Line 13 by Line 1. The two factors are built from different numbers and rarely match.
Do I file Form 505 or Form 515?
Yes, it depends on your home. File Form 515 if your home jurisdiction taxes Maryland residents and you owe local tax; otherwise file Form 505 with the special nonresident tax.
Do I include pension or Social Security income as Maryland income?
No. Pensions, IRA distributions, and Social Security are not Maryland-source for a nonresident, so they belong in the non-Maryland column and on Line 6b if needed.
Do I round my entries to whole dollars?
Yes. Maryland lets you round cents to the nearest dollar, with 50 cents and above rounding up. The form already prints 00 in the cents boxes.
Do I need to file if Maryland tax was withheld by mistake?
Yes. File Form 505 with Form 505NR to claim a refund of the erroneous withholding, attach your W-2s, and file within three years of the original due date.
Do military members stationed in Maryland owe tax on military pay?
No, generally. Legal residence does not change with duty station, so most service members report military pay as non-Maryland income and owe nothing on it.
Do I have to use the 2025 form specifically?
Yes. Use the 2025 form with the 09/25 revision date for tax year 2025. Prior-year forms use outdated rates and force a slow manual review.
Related reading
- How to Fill Out Maryland Withholding Form MW507 + FAQs
- How to Fill Out Maryland Form 502 (w/Examples) + FAQs
- How to Fill Out Maryland Form 502SU (w/Examples) + FAQs
- How to Fill Out Maryland Form 502X (w/Examples) + FAQs
- How to Fill Out Maryland Form 505 (w/Examples) + FAQs
- How to Fill Out Maryland Form EL101 (w/Examples) + FAQs