2023 Maryland Minimum filing level

[KoalaBear1]

2023 Maryland minimum filing level for single 65+ is $15,700.   On Maryland Form 502 Line 16 is Maryland Adjusted Gross Income.   If your line 16 is less than $15,700, and if you are single 65+, does that mean you are not required to file Maryland tax, and if you do file, is your Maryland Adjusted Gross Income taxed for both Maryland tax and Local tax?

If it's not Line 16 on Maryland Form 502, which line is counted toward the Maryland minimum filing level?

[DMarkM1]

You are correct the minimum filing level for single filers, age 65+ is $15,700 from MD Form 502, Table 2.  However, it is not line 16, MD Adjusted Gross Income (AGI), on your MD form 502 that is use determine your filing requirement.  It is line 7, Federal AGI plus MD additions, minus any taxable social security that was included in your Federal AGI.  This number is your MD Gross Income.  Below is an extract from the MD Form 502 Instructions.

Additionally, it is line 20, Taxable Net Income, that is used to figure your MD state and local taxes.  

" TO DETERMINE IF YOU ARE REQUIRED TO FILE A MARYLAND RETURN

 a. Add up all of your federal gross income to determine your total federal income. Gross income is defined in the Internal Revenue Code and, in general, consists of all income regardless of source. It includes wages and other compensation for services, gross income derived from business, gains (not losses) derived from dealings in property, interest, rents, royalties, dividends, alimony, annuities, pensions, income from partnerships or fiduciaries, etc. If modifications or deductions reduce your gross income below the minimum filing level, you are still required to file. 

b. Do not include Social Security or railroad retirement benefits in your total federal income.

c. Add to your total federal income any Maryland additions to income. Do not include any additions related to periods of non-residence. This is your Maryland gross income.

...

e. You must file a Maryland return if your Maryland gross income equals or exceeds the income levels in the MINIMUM FILING LEVEL TABLE..."

[KoalaBear1]

Thank you.  I see my line 7 is below the min filing level of $15,700.

Maryland asks:
"Did modifications or deductions reduce your gross income below the minimum filing requirement (which is $15,700 for your filing status)?   Yes or No
If so, your income is considered taxable. Click help for more information."

Help section says:
"Add up all of your federal gross income to determine your total federal income....

If your Federal Adjusted Gross Income is below the minimum filing requirements (before modifications or deductions) select No."

I went to my IRS Form 1040-SR to locate my Federal Adjusted Gross Income before modifications or deductions.   Is this on line 11 of IRS Form 1040-SR?   Line 11 says, Subtract line 10 from line 9. This is your adjusted gross income.

[JWalto]

Hi Mark,

   I am also having a problem with this in Turbo Tax.  Everything is basically the same from 2023 - 2024 & Turbo Tax is not using the Minimum filing worksheet.  My return is below the filing limit for both years, so I am not required to file, however, turbo tax goes on to claculate a local tax.  Last year it did not when it used the worksheet.  I am confused by this.  Do you have any suggestions?

Thanks

[JWalto]

If you have completed taxes for 2024, is turbo tax requiring you to file for local taxes even though you are not required to file for Maryland?  I am having a problem with this.

Thanks

[IsabellaG]

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

1. Sign into your online account.
2. Locate the Tax Tools on the left-hand side of the screen.
3. A drop-down will appear. Select Tools
4. On the pop-up screen, click on “Share my file with agent.”
5. This will generate a message that a diagnostic file gets sanitized and transmitted to us.
6. Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

1. Open your return.
2. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
3. This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us.
4. Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)