In the Maryland individual income tax return, if you have completed Form 502UP and no underpayment penalty calculates, it's best to remove the form since it doesn't apply. When the return is electronically filed, Form 502UP won't be included in the e-file data since there is no penalty.
Additionally, if you complete Form 502UP with no underpayment calculating, and you have selected exemption code number 301, when the return is e-filed you will get this reject:
Reject Code: Form502-01880-020
If one of the exception codes equal to 301, Form 502UP must be submitted.
Because no underpayment penalty has calculated on Form 502UP, the form isn't included in the e-file data. Thus, claiming an exemption code is unnecessary.
Resolving Reject Code Form502-01880-020
There are three ways to resolve this reject:
- Remove Form 502UP.
- Remove the exemption code number in the Maryland Underpayment of Estimated Tax menu.
- File the return in paper form, attaching a copy of Form 502UP.
Additional Information: