If you’re a resident of the USA, tax season is the busiest time of the year. Updating your documents, financial statements, and tax documents and complying with the rules is what every individual and business is busy in.
Federal taxes, state, city, and local taxes are applicable to different individuals and businesses irrespective of the federal taxes.
However, the requirements for state and local taxes can differ from each other and from federal taxes. Some states do not apply taxes on the taxpayers who’re paying taxes in another state or federal taxes.
Therefore, individual and business taxpayers must spend a lot of time understanding their respective states’ tax requirements and tax filing procedures.
State income tax is the tax applicable to the taxpayers by the respective state where they have the resident status. Maryland is a state in the U.S., and we are going to discuss the tax procedure for state taxes in Maryland.
Besides discussing the tax filing process, the post’s main focus will be tracking state tax refunds for Maryland taxpayers.
So let’s get into it.
Requirements For State Taxes
We have already mentioned that the tax requirements for state taxes can vary from each other. We can categorize the state taxes into three categories:
- No tax at all
- Flat tax – a flat rate is applied on income in all categories(income, dividends, interests)
- Progressive tax –slabs are given with higher tax rates for people with higher income and vice versa.
Maryland Taxes
Maryland is among the states where a progressive tax system is applied. A minimum taxable income is defined, and a minimum tax rate is applied to the people above that income.
As the income increases, the tax rate is also increased. The minimum state tax in Maryland is 2%, and the maximum tax is 5.75%. The minimum taxable income is $1,000 and goes up to $250,000.
A distinct thing in Maryland is that local taxes are also applicable to the taxpayers. It’s among very few states in the U.S where local governments also withdraw taxes.
The tax rates range from 1.25% to 3.2% as per the tax slabs defined under the state taxes. The local taxes do not depend on where the taxpayer works but on the county where they reside.
Tax Brackets For Maryland
The tax department of Maryland has issued the tax slabs in which the tax rate increases progressively as the taxable income increases. The tax slabs and respective tax rates are given in the table below:
| Taxable Income –Single Filers/Married Filing Separately | Taxable Income –Married Filing Jointly/Head of Household | Tax Rate |
| $0+ | $0+ | 2% |
| $1000+ | $1000+ | 3% |
| $2000+ | $2000+ | 4% |
| $3000+ | $3000+ | 4.75% |
| $100,000+ | $100,000+ | 5% |
| $125,000+ | $125,000+ | 5.25% |
| $150,000+ | $150,000+ | 5.50% |
| $250,000+ | $250,000+ | 5.75% |
Maryland Tax Exemptions
Tax exemptions are applied in different states and for federal taxes as well. When we talk about Maryland taxes, the taxpayers are also entitled to certain tax exemptions. Here are the details of tax exemptions for the Maryland taxpayers:
- The single filers with annual income below $100,000 can claim the personal exemption of $3,200. The exemption amount reduces with an increase in the annual income.
- The joint filers are entitled to an exemption of $3,200 for the Head of Household. The rule of reduction in exemption amount also applies to the joint filers.
How To File Tax Return For Maryland State Tax
According to the declaration of the Maryland government, the taxpayers can file tax returns for state taxes in different ways. There are the following options for taxpayers to make the process convenient and quick:
Filing by yourself
The income tax return deadline for the current year is July 15, 2022. You can file the tax return on your own by completing the fiscal year information at the top of form 502 and furnishing the respective documents required.
Tax software
Several market tax software and solutions have made it easy to file tax returns without professional assistance. You can use any of the software like TurboTax, HRBlock, etc., and file your state tax return by following the simple steps given within the software.
Professional Tax Accountants and Tax Preparers
Professional tax accountants and tax preparers are always there to assist the individual and business taxpayers. You can select a tax accountant in Maryland who can help you file your tax return electronically.
How Do You Know You Have To File Maryland Income Tax Return?
It’s important to know who is required by Maryland’s law to file the state income tax returns. According to the Maryland Taxes Department, an individual is required to file an income tax return in Maryland if the following conditions are fulfilled:
- An individual is a resident of Maryland
- An individual is required to file the Federal Income Tax Return as per the laws of the country
- The gross income in Maryland is equal to or more than the level listed in the tax slabs for different filing statuses. The tax slabs and filing levels are also applicable to non-resident people required to file Maryland tax returns.
How To Check Maryland Income Tax Refund?
Now that you know everything about tax filing status for Maryland taxes, procedures, tax rates, etc. However, you might be curious about knowing the status of claimed refunds in Maryland Tax Refund. Irrespective of how you have filed your tax return, you must have your Social Security Number and Refund Amount for tracking your tax refunds under Maryland Income Tax. You can check the status of your tax refund by visiting the online Portal of Maryland State Refund
According to the declaration of the Maryland government, they process the applications of tax filers according to the mode they have used. Here are details of processing for e-filers and paper filers.
E-Filers
For individuals who opt for e-filing of tax returns, their tax return is transmitted on the same day of filing. Therefore, the department process the application on the same day. If individuals have taken the help of tax professionals and didn’t receive the refund check within the prescribed time, they must check and track the status through an online portal.
Paper Filers
The processing of paper returns can take up to 30 working days. Therefore, the tax return receipt takes place once processing is completed.
If sufficient time has passed and you do not receive your refund, you can check the reasons your tax refund might have been delayed. The reasons can be math errors, missing entries, or claimed amounts different from the amount on file.
How Much Time Should You Wait Before Checking Your Refund Status?
Return processing takes time, as mentioned above. Therefore, tax filers must know the timeline they have to wait until they go to check their tax refund status.
Generally, it’s recommended that tax filers wait for at least ten days from the tax return acknowledgment before contacting the concerned department to ask about the refund information.
Resources For Checking Refunds
Here is the list of all resources that you might need for checking with the Maryland Tax Department about your tax-related queries as well as refund tracking:
Individual taxpayers can check their tax refund status by visiting the Comptroller of Maryland’s website and going to the section Where’s My Refund.
You can also call the Refund Inquiry Hotline(Toll-free) to ask about your refund. The numbers are as follows: 1-800-218-8160 or 410-260-7701.
FAQs
Why is my refund less than expected?
There can be many reasons why your actual refund can be less than what you expected. The most common reasons can be owing money for past taxes, child support, or federal taxes, claims for an ineligible dependent, failure to furnish Form 502B, failure to enter Social Security Number or ITIN, etc.
You can check our blog post on why your refund might be less than expected.
Why is there a delay in the processing of my return and refund?
The delay in processing returns and refunds can be due to missing information and documentation like Form W-2, Form 1099, etc. The tax return might be incomplete, or your tax return might not be eligible for a refund.
Wrap Up
We have covered everything related to Maryland taxes and what you need to know for filing a return and tracking your claimed refunds. Whether you’re an online or paper filer, you will require your SSN and the exact amount of refund to track the Maryland tax refund.
