Maryland 2021 Local EIC

Forum|Forum|4 years ago
February 16, 2022
3 replies
35 views

TT Premier calculates a different local EIC for a single person without a qualifiying child than the Maryland I-File website when the same numbers are used. The TT amount is 50% of the Maryland IFile amount.

JohnW152

Level 15

Without knowing your numbers and inputs, it’s not possible to recreate your outcome.

If you use the Local Earned Income Credit Worksheet shown on page 16 of Maryland’s 2021 state & local tax forms & instructions, do you come up with the same amount as the TurboTax program, or what you’re seeing on the Maryland I-File website? (Pdf links sometimes don’t download well; you can find the instruction booklet linked above at 2021 Individual Income Tax Forms.)

Were you possibly using the Comptroller of Maryland's EITC Assistant found at Tax Credits and Deductions for Individual Taxpayers? If so, that calculator is only good for 2020 calculations, at the moment. It hasn’t been updated for 2021.

Any additional information you might provide would be helpful.

Maryland taxpayers who qualify for the state earned income credit may also be eligible for the Local earned income credit, using a Local Earned Income Credit Worksheet.

MDtaxpayer66Author

Level 2

If I use the worksheet on page 16, I get the same numbers as Turbo Tax.

Using the same numbers as Turbo Tax on Maryland I-File, I get twice the amount of local EIC. I used the MD 502 form I created on Turbo Tax and filled in the MD I-File form and I get different numbers. On the I-File, this is if I check without a qualifying child. If I change to with a qualifying child I get the same as Turbo Tax that is calculate without a qualifying child.

I am not using the EITC assistant as I noticed it was for 2020 and not 2021.

It appears that the MD I-File has an incorrect formula and the result can't be overwritten.

AmyC

Level 15

Two parts. MD EIC and MD local EIC. For the MD EIC,2021 MD Instruction book, page 19 states:

If you are a married couple filing either a joint or separate Maryland return, or you have at least one qualifying child, then you may claim one-half (50%) of the federal credit on your Maryland return.

Individuals filing as single, head of household, or qualifying widow(er) without a qualifying child may claim 100% of the federal earned income credit, or $530, whichever is less; see Worksheet (18A.1) to calculate any refundable earned income tax credit.

Next, the Local EIC, on page 22 has the Local Earned Income Credit details. The point is filing status, children, etc are not involved in the local EIC calculation.

A simple worksheet. It has you enter your local tax rate, multiply by 10 then multiply by your federal EIC.

Can you verify your federal EIC on line 27 of form 1040? If you are single then your MD EIC would be the federal EIC or $530. If you have a child or are married, the credit would be half of your federal EIC. Are these numbers correct on your return? This would be line 29 on your MD 502.

The local EIC should be the same no matter what, local tax rate x 10 x federal EIC = line 29 on MD 502.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"