Filing your Maryland state income tax return for 2018 may seem challenging, especially if you are unsure which forms to use or how to apply the rules for that tax year. This step-by-step guide explains how to file your Maryland tax return for 2018 clearly and thoroughly to meet all state requirements. Whether you are filing independently or seeking professional assistance, you will find the information needed to complete the process accurately.

This guide is designed for many taxpayers, including Maryland residents, part-year residents, sole proprietors, and small business owners. It will walk you through key topics such as who needs to file, income thresholds, important deadlines, and the forms required. By following the outlined steps, you can understand how the Maryland Department of Assessments and Taxation and the Comptroller’s Office process returns and how to prepare the necessary documents for submission.

Accurate filing is essential for avoiding penalties, claiming every deduction or tax credit you qualify for, and ensuring your return is processed without delays. By using the correct forms, meeting each deadline, and following Maryland’s specific tax rules, you can protect your refund, minimize any balance you owe, and maintain compliance with state and federal regulations. This guide also includes an FAQ section to address common concerns, making it a comprehensive resource for the 2018 tax year.

What Is the Maryland State Income Tax Return?

The Maryland state income tax return is the official document taxpayers use to report income, claim deductions and tax credits, and calculate the amount owed to the state or the refund they will receive. While the Internal Revenue Service (IRS) manages federal income taxes, the Maryland Department of Assessments and Taxation and the Comptroller’s Office handle state-level tax collection and compliance. Filing ensures you meet all state requirements and allows you to access any benefits for which you are eligible.

For the 2018 tax year, the state tax return served several purposes:

  • Report Maryland Taxable Income – Calculate income after adjustments, subtractions, and applicable exemptions.
  • Apply State-Specific Tax Credits—You can claim the Earned Income Tax Credit, Child and Dependent Care Credit, or business-related credits.
  • Determine Local Income Tax—Calculate county-level taxes based on your primary Maryland residence as of December 31, 2018.
  • Settle Any Balance Due or Claim a Refund – Determine whether you owe additional funds or are entitled to a refund from the Comptroller’s Office.

Unlike your federal return, which follows national guidelines, the Maryland tax return incorporates state-specific rules on deductions, exemptions, and filing requirements. Even though the 2018 filing deadline has passed, certain taxpayers—such as those who did not file initially, need to amend their return, or are responding to an audit—may still need to submit a paper return or file electronically if allowed. Understanding these differences helps you apply the correct process and maintain compliance.

Who Needs to File a Maryland Tax Return for 2018

Not everyone must file a Maryland state income tax return for the 2018 tax year, but certain conditions make filing mandatory. In most cases, you must file if you were a Maryland resident for any part of the year and met the income thresholds that apply to your age and filing status. Maryland’s rules closely follow federal requirements, so you typically need to file a state return if you are also required to file a federal tax return with the IRS.

You must file a Maryland 2018 tax return if you meet both of the following:

  • Residency Requirement – You were a full-year or part-year resident of Maryland in 2018. Residency includes maintaining a permanent home in the state or living in Maryland for at least 183 days during the year.
  • Federal Filing Requirement – You must file a federal income tax return for the 2018 tax year.

2018 Maryland Income Thresholds

Your filing obligation also depends on your adjusted gross income (AGI), age, and filing status:

Under Age 65

  • Single: $12,000 or more
  • Married Filing Jointly: $24,000 or more
  • Married Filing Separately: $5 or more
  • Head of Household: $18,000 or more
  • Qualifying Widow(er): $24,000 or more

Age 65 or Older

  • Single: $13,600 or more
  • Married Filing Jointly (one spouse 65+): $25,300 or more
  • Married Filing Jointly (both spouses 65+): $26,600 or more
  • Married Filing Separately: $5 or more
  • Head of Household: $19,600 or more
  • Qualifying Widow(er): $25,300 or more

Even if you do not meet these specific requirements, you may still choose to file a claim for a refund, qualify for a tax credit, or meet other obligations from the Maryland Comptroller’s Office.

Major Maryland Tax Changes for 2018

The 2018 tax year introduced several significant changes that affected Maryland taxpayers. These updates came from federal tax reform and state-specific legislation, influencing deductions, exemptions, and available credits. Understanding these updates is essential to ensure your Maryland tax return is accurate and takes full advantage of any benefits you qualify for.

Federal Tax Cuts and Jobs Act (TCJA) Impacts

Maryland chose to keep specific rules separate from federal changes, which means taxpayers had to follow state-specific guidelines even after filing their federal return. Key adjustments included:

  • Decoupling from Certain Federal Changes—Maryland maintained its own rules for personal exemptions despite federal suspension.
  • Suspension of the Pease Limitation—The cap on itemized deductions was removed for this year.
  • Revised Net Operating Loss Rules—Changes affected how losses could be carried forward for Maryland purposes.

Maryland-Specific Changes for 2018

  • Standard Deduction Increase – $2,250 for single filers; $4,500 for joint filers or heads of household.
  • Personal Exemptions Maintained – $3,200 per qualifying person, despite federal elimination.
  • Military Retirement Subtraction Increase – Raised to $15,000 for taxpayers age 55 or older (previously $10,000).
  • New Organ Donor Expense Subtraction—Up to $7,500 for qualifying expenses.
  • Expanded Student Loan Debt Relief Credit – Now includes graduate-level loans.

These changes demonstrate Maryland’s focus on taxpayer protection and preserving deductions and credits that benefit residents, particularly military retirees, students, and individuals with high medical or personal expenses. Awareness of these updates helps you apply the correct calculations and avoid filing errors.

Required Forms and Documents

To correctly file your Maryland state income tax return for 2018, you must use the proper forms and gather all necessary documentation before starting. This ensures your return is processed without delays and meets all state and federal requirements. If unsure which forms apply to your situation, the Maryland Department of Assessments and Taxation provides official tax information and downloadable documents at dat.maryland.gov.

Primary Form

  • Form 502 – Maryland Resident Income Tax Return
    This is the main form for full-year and part-year residents. It reports income, claims deductions and tax credits, and calculates the tax due or refund owed.

Supporting Forms

  • Form PV – Payment Voucher
    Required when submitting payment by check or money order. It must be attached to the payment, not the tax return, and accompany returns, extensions, or estimated payments.
  • Form 502B – Dependent Information
    Needed when claiming dependents on your return. Each dependent must be listed with their complete details and Social Security Number.
  • Form 502R – Retirement Income
    Used to claim eligible retirement income subtractions, including military retirement benefits and qualifying pensions.

Schedules and Credits

  • Form 502SU – Subtractions from Income
    Reports specific Maryland income subtractions, such as military retirement pay, volunteer firefighter/EMS benefits, or organ donor expenses.
  • Form 502CR – Tax Credits
    Required for claiming credits like the Earned Income Tax Credit, Poverty Level Credit, or business-related credits.
  • Form 588 – Multiple Account Direct Deposit
    Allows your refund to be split into multiple bank accounts for savings and budgeting purposes.

Additional Forms for Small Businesses

  • Federal Schedule C—Reports business income and expenses for sole proprietors.
  • Federal Schedule E—Reports rental income, royalties, and certain partnership or S-corporation income.
  • Maryland Schedule K-1—Used to report each partner’s or shareholder’s share of income, deductions, and credits from a partnership or S corporation.

Documents to Gather Before Filing

  • W-2 forms from all employers.
  • 1099 forms for interest, dividends, and other income.
  • Schedule K-1 forms for partnership or S-corporation distributions.
  • Records of business income and expenses.
  • Receipts for deductible expenses, including charitable donations and medical costs.
  • Proof of Maryland tax withholding or estimated payments.

Having these forms and documents ready will make completing your paper return or e-file submission easier and reduce the risk of missing important details.

Step-by-Step Filing Instructions

Follow these steps to complete your Maryland state income tax return for 2018 accurately and efficiently. This sequence will help you meet all Maryland Department requirements, avoid common mistakes, and claim every tax credit you qualify for. For detailed guidance on available credits, forms, and eligibility, visit the official Comptroller’s Office at marylandtaxes.gov.

Step 1 – Complete Your Federal Return First

Maryland law requires your state return to align with your federal income and deduction figures. Finish your 2018 federal Form 1040 before starting your Maryland return so you can use the same adjusted gross income (AGI) and related information.

Step 2 – Fill Out Personal and Filing Information

Provide your full legal name, Social Security Number, and mailing address. If you lived in Maryland during 2018, list your physical Maryland address and include your four-digit political subdivision code. Ensure your filing status matches your federal return unless you qualify for Maryland’s separate filing option for married couples.

Step 3 – Calculate Maryland Income

Start with your federal AGI, then add Maryland-specific income adjustments, such as income from other states or deductions not allowed by Maryland. Next, subtract allowable state subtractions, including military retirement pay, volunteer firefighter benefits, or organ donor expenses.

Step 4 – Apply Deductions and Exemptions

Choose between the Maryland standard deduction or itemizing deductions as state law permits. Standard deductions for 2018 were $2,250 for single filers and $4,500 for joint filers or heads of household. Apply personal exemptions of $3,200 per qualifying individual, noting that high-income filers may be subject to phase-outs.

Step 5 – Compute Maryland Tax Liability

Use Maryland’s tax tables or rate schedules to determine your state tax based on your taxable income and filing status. Remember to calculate your local income tax based on your county of residence.

Step 6 – Apply Tax Credits

Reduce your tax due by claiming eligible credits. Standard options include the Earned Income Tax Credit, Child and Dependent Care Credit, Poverty Level Credit, and business-related credits. Attach the appropriate schedules, such as Form 502CR, to support your claims.

Step 7 – Calculate Local Income Tax

Apply your county’s local tax rate to your taxable income. Rates range from 1.25% to 3.2%, depending on your Maryland county or Baltimore City residence as of December 31, 2018.

By following these steps, you will cover all essential elements of the taxation process for the 2018 filing year, making it easier to submit an accurate return to the Comptroller’s Office.

Filing Methods: Electronic vs. Paper

Maryland offers electronic and paper filing options for the 2018 state income tax return. Choosing the correct method depends on your preferences, filing complexity, and whether you want faster processing. The Maryland Department recommends e-filing for speed, accuracy, and security whenever possible.

Electronic Filing (E-File)

  • Maryland iFile—A free online service is available at interactive.marylandtaxes.gov for eligible taxpayers.
  • Commercial Tax Software—Paid software that supports Maryland state returns and can guide you through filing.
  • Professional Preparers—Authorized tax professionals can e-file your return and ensure compliance with state and federal requirements.

Benefits of E-Filing:

  • Faster refund processing (often within three business days).
  • Secure encryption to protect sensitive tax information.
  • Automatic confirmation from the Comptroller’s Office upon receipt.
  • Extended payment deadline for e-filed returns (April 30, 2019, for 2018 filings).

Paper Filing

  • Mail your completed Form 502 to the appropriate address depending on whether you owe or expect a refund.
  • Include all W-2s, 1099s, and required schedules with your paper return.
  • Attach the Form PV if you send a payment by check or money order.

Mailing Addresses:

  • With Payment:
    Comptroller of Maryland
    Payment Processing
    PO Box 8888
    Annapolis, MD 21401-8888
  • Without Payment:
    Comptroller of Maryland
    Revenue Administration Division
    110 Carroll Street
    Annapolis, MD 21411-0001

Private Delivery Services:
Use the Carroll Street address for carriers like FedEx or UPS.

Filing electronically is the most efficient option, but if you submit a paper return, use the correct address, include all attachments, and mail it before the applicable deadline to avoid penalties.

Payment Options and Deadlines

You can choose from several payment methods if you owe Maryland state income tax for the 2018 tax year. Selecting the right option can help you avoid penalties, manage cash flow, and ensure the Comptroller’s Office receives your payment on time.

Electronic Payment Methods

  • Direct Debit (E-Filed Returns)—Schedule a payment for any date up to April 30, 2019, when you e-file. The amount is withdrawn directly from your bank account without additional fees.
  • Online Bill Pay—Make secure payments through marylandtaxes.gov using your bank’s bill pay service or the Comptroller’s portal.
  • Credit Card Payments – Pay online or by phone using a major credit card. Processing fees apply, and funds are sent to the Maryland Department of Assessments and Taxation for allocation.

Traditional Payment Methods

  • Check or Money Order – Make payable to “Comptroller of Maryland” and include your Social Security Number on the payment. Must be accompanied by Form PV.
  • Mailing Instructions—For returns with payment, Use the payment address listed and ensure it is postmarked by the applicable deadline.

Deadlines

  • Standard Deadline: April 15, 2019, for 2018 returns.
  • Extended Deadline: April 30, 2019, if you e-file and pay electronically.
  • Penalty Avoidance: Pay at least 90% of your tax liability by the filing deadline to avoid late payment penalties.

If you cannot pay the full amount, contact the Comptroller’s Office to discuss payment plans. Taking action before the deadline can help reduce interest charges and protect your credit with the state’s taxation agency.

How to Track Your Refund or Balance Due

Once you file your Maryland state income tax return for 2018, you can monitor your refund status or check if you still owe money. The Comptroller’s Office offers several convenient tracking tools so you can stay informed and take action if needed.

Refund Tracking Options

  • Online—Visit marylandtaxes.gov and use the “Check Refund Status” feature. You’ll need your Social Security Number and the refund amount shown on your return.
  • By Phone: To access the automated status system, call 1-800-218-8160 (toll-free) or 410-260-7701 (Central Maryland).

Direct Deposit and Multiple Accounts

  • For faster access to your refund, use direct deposit by providing your bank’s routing number and your account number on your return.
  • If you want to split your refund between multiple accounts, file Form 588 with your return.

Typical Processing Times

  • E-Filed Returns – Generally processed within three business days.
  • Paper Returns – May take 4–6 weeks, depending on volume.
  • Complex Returns – Could require additional review, which may extend processing time.

If your return shows a balance due, you can pay it online, by mail, or through other approved payment methods. Addressing any outstanding balance promptly will help you avoid additional penalties and interest from the Maryland Department.

Common Filing Mistakes to Avoid

Filing errors on your Maryland state income tax return for 2018 can cause processing delays, reduce your refund, or lead to penalties from the Comptroller’s Office. Avoid these common mistakes to ensure your return is accurate and accepted without issues.

  • Incorrect Social Security Numbers—Double-check that all Social Security Numbers, including those for dependents, are entered correctly and match Social Security Administration records.
  • Wrong Local Tax Rate or Jurisdiction – Use the correct county or Baltimore City rate based on your residence as of December 31, 2018. Political subdivision codes must also be accurate.
  • Missing Required Attachments—Include all W-2s, 1099s, schedules, and forms such as 502B or 502CR when applicable. Missing attachments often result in processing delays.
  • Mathematical Errors—Verify all income, deductions, credits, and tax liability calculations to ensure they match supporting forms.
  • Incorrect Mailing Address—If filing a paper return, use the correct address for returns with or without payment.
  • Unsigned Returns—Both paper and e-filed returns require valid signatures. An unsigned return is considered incomplete and may be rejected.
  • Late Filing or Payment – File and pay by the deadline to avoid penalties and interest. Even if you cannot pay in full, submit your return on time and arrange a payment plan with the Maryland Department.

Reviewing your return carefully and using the checklist in the next section can avoid these common errors and ensure your filing is processed smoothly.

Final Filing Checklist

Before sending your Maryland state income tax return for 2018 to the Comptroller’s Office, review the following points to ensure accuracy, completeness, and compliance with all Maryland Department requirements.

  • Forms Completed – Ensure Form 502 and all applicable schedules (502B, 502R, 502SU, 502CR, 588) are filled out completely and accurately.
  • Supporting Documents: Include all W-2s, 1099s, Schedule K-1s, and any other required documentation.
  • Personal Information Verified—Confirm correct names, Social Security Numbers, and addresses.
  • Filing Status Confirmed—Match your filing status to your federal return unless using Maryland’s separate status option for married couples.
  • Income and Deductions Checked—Verify all income amounts, deductions, subtractions, and exemptions are correctly calculated.
  • Credits Applied – Ensure all eligible tax credits are claimed and supported by the proper forms.
  • Local Tax Rate Confirmed—Use the correct county or Baltimore City rate and political subdivision code.
  • Payment Prepared—If you owe money, attach Form PV to your check or money order, or confirm your electronic payment details.
  • Signatures Added – Sign and date the return; both spouses must sign if filing jointly.
  • Copies Saved—Keep a complete copy of your return and all attachments for your records for at least three years.

Completing this checklist before you file can help prevent delays, protect your refund, and reduce the risk of follow-up notices from the taxation agency.

Frequently Asked Questions

What if I missed the 2018 Maryland filing deadline?

Suppose you missed the April 15, 2019, deadline. File as soon as possible. Maryland charges penalties and interest for late returns, but filing promptly reduces additional costs. Even if you cannot pay the full amount owed, submitting your return ensures you meet filing requirements and may prevent further enforcement actions by the Comptroller’s Office.

Can I still e-file my 2018 Maryland return?

In most cases, older-year returns like 2018 must be filed using a paper return. However, authorized tax professionals and software providers may still electronically transmit prior-year returns. Before preparing your return, check with the Maryland Department of Assessments and Taxation or the Comptroller’s Office for current e-file availability.

Which Maryland deductions are most commonly overlooked?

Commonly missed deductions for 2018 include the military retirement income subtraction, volunteer firefighter or EMS subtraction, organ donor expense subtraction, and specific student loan interest adjustments. Reviewing the instructions for Form 502SU can help ensure you claim all available deductions and lower your taxable income. Keep receipts and supporting documents to validate your claims if reviewed.

How do I request an extension for a Maryland return?

For the 2018 tax year, you could request an extension by filing federal Form 4868, which Maryland accepts as long as you do not owe taxes. If you have a balance due, submit Maryland’s Form PV with payment by the original deadline. An extension to the file does not extend the time to pay.

Can I file jointly if I moved to Maryland mid-year?

Yes, if you were a Maryland resident for any part of 2018, you can file as a resident for the entire year and choose the same filing status used on your federal return. Part-year residents use Form 502 with adjustments for out-of-state income. You may also claim a credit for taxes paid to another state.

Where can I find official tax information from the Maryland Department?

You can access official tax information directly from the Maryland Department of Assessments and Taxation and the Comptroller’s Office websites. These resources provide forms, filing instructions, payment options, and deadline details for current and prior years. Online tools also allow you to check refund status, review filing requirements, and download publications to help you prepare an accurate and compliant Maryland state tax return.

What should I do if I paid taxes to another state in 2018?

Maryland offers a credit to prevent double taxation on the same income. Use Form 502CR, Part A, to claim this credit and attach a copy of the other state’s return and proof of payment. This credit reduces your Maryland tax by the amount paid elsewhere, subject to state-specific calculation rules and limitations.