Maryland 502CR for non resident

[Quentin B]

Here is our situation. We are living in Massachusetts.  We did worked a little bit in maryland my wife and me (we earned there something like $3000). We are non resident as we never lived there. I did filled everything, and at the end turbotax did generate a refund of $330, which felt weird to me. By generating the document i found out it was including a form 502CR and claims a  "credit for Child and Dependent Care Expenses" calculated on our federal child credit. I feel like as a non resident i should not get this maryland child tax credit. But there is no way i can remove it. What can i do? i tried to delete it through turbotax tools but it doesn't disappear when i do it. Any help?

[BillM223]

As odd as this sounds, TurboTax is strictly following the instructions from the State of Maryland.

This credit is found on Maryland form 502CR.

For example, on page 3 in the Instructions for Form 502CR, it reads:

"Enter your Federal Adjusted Gross Income (FAGI) from line 1 of Form 502 or line 17, column 1 of Form 505 or Form 515."

Form 502 is the resident return and form 505 is the non-resident return so Form 502CR clearly applies to both residents and non-residents.

Furthermore, in the non-resident individual instruction booklet, on page 9 it reads:

"Line 34. OTHER INCOME TAX CREDITS FOR INDIVIDUALS. Enter the total of your personal income tax credits as listed below. Complete and submit Form 502CR with Form 505. ...b. CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES. If you were eligible for a Child and Dependent Care Credit on your federal income tax return and your income is below certain thresholds you are entitled to a tax credit equal to a percentage of the federal credit. You may also be entitled to a refundable credit. See instructions of form 502CR"

In short, the state's instructions say that you are eligible for this credit as a non-resident. Enjoy it.

[Quentin B]

great, thank you for your help.

It is odd indeed, but i guess i'll take it then!

is it some sort of tax glitch?

[BillM223]

It's not a "glitch" if TurboTax is doing exactly what the state instructions ask.

Rather it is a question of what the Legislature of the State of Maryland was thinking when they wrote this part of the tax code...but they appear to have deliberating written the tax code this way.

[Millie67]

I am a Maryland resident and I don't qualify for child tax credits

[BillM223]

You did not ask a question so I do not know what exactly you want to know, but note that the "credit for Child and Dependent Care Expenses" is different from the Child Tax credit.