Minimum Required Input. An entry must be made in the "Composite processing options" field (Maryland Composite worksheet, Composite Return Information section) in order to produce a Form 510C composite return.
Which Partners Will be Included
How to Select Partners in the Generic Partner Input Section. You can select one or more nonresident individual partner for inclusion in the composite return (when the second option was selected) by entering each includable partner's "Partner Number" and also entering the word "in" (for include) in the "State code" field.
Exclusion of Partners. If the first "Composite processing option" was selected (see WHICH PARTNERS WILL BE INCLUDED), all nonresident individuals are included except that particular nonresident individual partners may be excluded in the "Generic Partner Input" section. To do this enter each excludable partner's "Partner Number" and also enter the word "out" in the "State code" field.
Filing Status of Participating Partner. The program assumes that the filing status of each participating partner is "Single." The filing status of each participating partner may otherwise be selected in the "Generic Partner Input" section federal Common State category, Generic State Schedule K-1 Information worksheet. To select a filing status enter a "Partner Number" there and make a selection in the "Filing status" field. The available filing statuses are: Single, Married filing joint return or spouse had no income, Married filing separately, Head of household, Qualifying widow(er) with dependent child, and Dependent taxpayer.
The number of $1,000 exemptions for each partner is assumed to be zero. Enter the number of $1,000 exemption for each partner (if not zero) in the "State use - field 5" of the "Generic Partner Input" section referred to above. The maximum number of $1,000 exemptions available to a partner is "4".
The assumed number of $3,200 exemptions for each partner depends on the filing status of that partner.
If the filing status is single then one $3,200 exemption is assumed.
If the filing status is married filing joint return or spouse had no income then two $3,200 exemptions are assumed.
If the filing status is married filing separately then one $3,200 exemption is assumed.
If the filing status is head of household then two $3,200 exemptions are assumed.
If the filing status is qualifying widow(er) with dependent child then two $3,200 exemptions are assumed.
If the filing status is dependent taxpayer then zero $3,200 exemptions are assumed (computed to be $0).
If the assumption is incorrect for a particular partner, enter the number of $3,200 exemptions for a particular partner in the "State use - field 4" located in the "Generic Partner Input" section of the federal Common State category, Generic State Schedule K-1 Information section.
Per the Maryland Comptroller's instructions (Maryland Income Tax Administrative Release No. 6) the resulting exemption amount is then multiplied by a fraction (See Maryland - Composite - Ratio of nonresident partner income to total income) which consists of total nonresident partner income attributable to Maryland over the total distributive income of the partnership.
If you would prefer to enter the actual allowable exemption amount for any participating partner you may do so by checking the "State use - checkbox 1" and entering the actual exemption amount in the "State use - field 4".of the federal Common State category, Generic State Schedule K-1 Information worksheet, Generic Partner Input section.
The amount of standard deduction for a given participating partner depends on the filing status of that partner. Per the Maryland Comptroller's instructions (Maryland Income Tax Administrative Release No. 6) the amount of standard deduction for a nonresident individual partner participating in a composite return is the maximum standard deduction allowed a resident having the same filing status multiplied by the same fraction mentioned in the "Allowable Exemptions" section above.
The current maximum standard deduction is $2,000 for a resident taxpayer with a filing status of Single, Married filing separately, or Dependent taxpayer.
The current maximum standard deduction is $4,000 for a resident taxpayer with a filing status of Married filing jointly, Head of household, or Qualifying widow(er).
The program will compute the standard deduction for each partner multiplying the fraction mentioned above in the "Allowable Exemptions" section by the applicable maximum standard deduction discussed in the preceding two sentences.
If necessary, you may override the standard deduction for any partner by checking the "State use - checkbox 2" and entering the actual standard deduction amount in the "State use - field 5" at federal Common State category, Generic State Schedule K-1 Information worksheet, Generic Partner Input section.
The following composite return overrides are available in the "Generic Partner Input" section of the federal Common State category, Generic State Schedule K-1 Information worksheet. Each override entry applies only to the partner whose partner number appears in the associated "Partner Number" field.
Footnote Availability. Any footnote entered in the federal General category, Notes worksheet, Federal and State Footnotes section will appear in a supporting statement to the composite return if "510" is entered in the "State/City use" field located there.
A. The Maryland Revenue Administration Division no longer allows the partnership filing the composite return to apply any of the overpayment to a future tax year. The entire overpayment is now refunded.
| Product Support - support.cch.com/axcess Customer Support Knowledge Base - support.cch.com/kb Customer Support Contacts - support.cch.com/contact |