A Maryland resident couple filing jointly and who both have income subject to tax may be able to subtract from their taxable income the lesser of $1,200 or the income of the spouse with the lower income. This is the Two-Income Subtraction.
When completing the "Two-Income Married Couple Subtraction Worksheet" included in the Maryland Form 502 instructions, ProWeb allocates additions and subtractions to federal AGI between the spouses where known and allocates evenly where not known. If any of the following additions and subtractions to AGI is present in the return, you will need to examine it to ensure an even split is correct:
- Additions:
- Tax-exempt interest on non-Maryland state and local bonds
- Lump sum distributions
- Other Maryland-specific additions with a code letter
- Subtractions:
- Taxable refunds of state taxes
- Child and dependent care expenses
- Nonresident income received
- Other Maryland-specific subtractions with a code letter from Form 502SU
Note: Based on the facts and circumstances, it may or may not be correct to allocate these additions and subtractions evenly to each spouse.
If you're not sure if a two-income subtraction is needed, or if you're getting a validation error that indicates the two-income subtraction is missing, print the return and examine the additions and deductions to see which ones require allocation in the two-income subtraction menu.
To change an allocation on the Two-Income Worksheet in TaxSlayer ProWeb, from the Maryland Return menu select:
- Subtractions from Income
- Two-Income Subtraction - For the particular addition or subtraction, enter each spouse's portion. If the sum of the two amounts is not equal to the total addition or subtraction, the 50/50 split will be retained.
Note: This is an article on entering the Maryland Two-Income Subtraction in TaxSlayer ProWeb. It is not intended as tax advice.
Additional Information:
Maryland: Personal tax tip #50 Families and Maryland Income Taxes
Maryland: Tax Forms and Instructions
While TaxSlayer Pro strives to make the information and links contained on this page as timely and accurate as possible, TaxSlayer Pro makes no promise or guarantee about the timeliness, accuracy or completeness of the contents of this page. The information contained on this page is for general information and is not intended to be tax advice. The user is also encouraged to review the underlying state resources and publications.