Investors & landlords

Use these steps to enter the MD trust Schedule K-1 box 3 and box 4 amounts in your Maryland nonresident tax return:

1. If your box 4 amount on the MD trust K-1 is for U.S. Govt interest reported in box 1 or box 2 of federal K-1 for the trust, that amount can be entered during the federal K-1 entry by entering the U.S. Govt. interest amount under the applicable box 1 and/or box 2 amount.
2. If your box 4 amount on the MD trust K-1 is for U.S. Govt capital gains reported in box 4a of the federal K-1, you will be prompted to enter the MD trust K-1 box 4 U.S. Govt interest during the Maryland state return questions.
3. For MD trust K-1 box 3 "Additions", if you are using TurboTax Download/CD, you can enter these Additions in Forms mode (click the top right in blue bar).  Use the Open Form button to search for the “Other Additions Worksheet-Nonresident” form and entering the Additions on Line a (name of trust in text field, and amount in the amount field).
4. If you have subtractions in the MD trust K-1 other than U.S. Govt interest/gain (already entered in the steps 1 and 2 above), you can use the Open Form button to search and find the “Form 502SU” form and enter the Subtractions not already entered as U.S. Govt interest/gain there.
5. If you are using TurboTax Online, the steps 1 and 2 above are the same.  But, for the MD trust K-1 box 3 Additions and "other than U.S. Govt" box 4 Subtractions, you will need to find the "Here's the income that Maryland handles differently" screen in your Maryland state return questions.  On that screen, under the Business heading, you need to find the Partnership and S Corporations Adjustments line.  Start or Review that line to enter the box 3 Additions and "other than U.S. Govt" box 4 Subtractions.  If the Partnership and S Corporations Adjustments line is not under the Business heading, you may need to contact TurboTax for further assistance.