Md. Code Regs. 03.04.02.08

Current through Register Vol. 51, No. 11, May 31, 2024

Section 03.04.02.08 - Deductions Allowed a Nonresident

A. A nonresident individual may use the standard deduction as provided for under Tax-General Article, §10-219, Annotated Code of Maryland, or itemize deductions as provided for under Tax-General Article, §§10-218 and 10-219, Annotated Code of Maryland.

B. Standard Deduction.

(1) A nonresident individual may elect to use the standard deduction whether or not the individual itemizes deductions on the individual's federal income tax return in determining federal taxable income.

(2) Limitation. A nonresident may claim the standard deduction on the Maryland return in the amount computed by multiplying the appropriate standard deduction by a fraction:

(a) The numerator of which is Maryland adjusted gross income; and

(b) The denominator of which is federal adjusted gross income.

C. Itemized Deductions.

(1) Only an individual who itemizes deductions on the federal income tax return may elect to itemize deductions on the individual's Maryland income tax return.

(2) Limitation. A nonresident may claim itemized deductions on the Maryland income tax return:

(a) In the amount computed by multiplying federal itemized deductions, reduced by the amount claimed as taxes on income paid to a state or political subdivision of a state, by a fraction:

(i) The numerator of which is Maryland adjusted gross income, and

(ii) The denominator of which is federal adjusted gross income; or

(b) Actual itemized deductions verifiable by the individual as paid in Maryland.

Md. Code Regs. 03.04.02.08

Regulations .08, Individual, adopted effective January 9, 1989 (15:27 Md. R. 3126)
Regulation .08 amended effective October 12, 1992 (19:20 Md. R. 1813)
Regulation .08B amended effective October 9, 2006 (33:20 Md. R. 1612)